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CPG brands? localized digital activations more influential than TV ads: report

CPG brands must make personalized content and localized digital activation a priority if they want to influence in-store sales in an increasingly multi-screen environment, according to a new report from Gannett division G/O Digital.

The CPG Marketing Reinvented report found that localized digital activation has a bigger direct marketing sway than television ads for CPG brands. Key findings include that 35 percent of moms and 29 percent of dads say the most frustrating thing about online and mobile ads is when the content is not locally relevant to in-store products and prices. 

?It?s surprising to see that deal content distributed across digital channels flexes more direct marketing muscle than TV ads,? said Jeff Fagel, chief marketing officer at G/O Digital. 

?As smartphone usage, DVR adoption, binge TV watching and cable cord cutting become more of the norm, it will be more important than ever for CPG brand marketers to leverage data to tailor marketing efforts, locally,? he said. ?This is, in my opinion, the true opportunity for marketers ? to scale local marketing.?
 
The report is based on a survey of 1,000 online and mobile users in the United States that was conducted this summer between July 2 and July 9. 

Mobile is a behavior
?Pointing to the number of devices consumers use throughout their day, the report?s recommendations include that CPG should approach mobile as a behavior and not a channel while leveraging personalized promotional content and real-time localized digital activation at scale. 

Findings include that 79 percent of moms and 75 percent of dads are more likely to make in-store purchases when presented with locally relevant and personalized deals. 

Additionally, 32 percent of moms name digital circulars as the most influential advertising medium for influencing their in-store food and beverage purchases. Similarly, 29 percent of dads say the same thing. 


However, TV ads only influence the in-store purchase decisions of 6 percent of moms and 13 percent of dads. 

The report points to how mobile helps bring deals and in-app promotions into the store, with 19 percent of moms saying they regularly check Web sites, mobile sites and apps for promotions and deals when in-store while 36 percent say this is somewhat important.  

?Mobile is perceived as a hero for shoppers, but all marketers must approach mobile as a behavior (not a channel) and strive for real-time localized digital activation at national scale,? Mr. Fagel said.  

?The lines between online and offline shopping have not only blurred; they?ve begun to disappear altogether,? he said. ?While retailers and brands often focus on what?s ?sexy?? iBeacons, geofencing and other technologies ? we need to consider how consumers already interact with their devices and take advantage of that behavior.?

Facebook beats Twitter
?The report are underscores how consumers are increasingly researching sale items online before they shop for groceries, with 40 percent of moms saying this is the first thing they do. 

Online and mobile deals also influence which supermarket consumers visit with 60 percent of moms and 50 percent of dads saying they would be very inclined to visit a local supermarket that advertises the lowest prices and deals. 


Another key finding is that Facebook beats Twitter as the most useful media channel to engage with CPG brands, with 55 percent of moms and 47 percent of dads pointing to Facebook while only 5 percent of moms and 7 percent of dads find Twitter useful. 

Additionally, 77 percent of moms and 72 percent of dads say localized deals and offers on Facebook are important enough to affect the food and beverage items they drop into their grocery shopping carts.

?First and foremost, invest in the mobile experience,? Mr. Fagel said. ?Part of this means marketers need to stop getting bogged down by tactics ? like launching a mobile-optimized site or fancy app. 

?Today?s consumers switch screens as much as 21 times per hour,? he said. ?On top of having shorter attention spans, consumers have even less tolerance for experiences that interrupt their native user experiences and worst of all, don?t match their needs in real-time.
 
?There are a countless number of marketing tactics being thrown at consumers in a day ? from emails and newsletters, to weekly ads, coupons and special offers. What needs to take precedence over everything when devising marketing strategies is the experience ? from the consumers? mindset, not the brand?s perspective.?

Final Take
Chantal Tode is senior editor on Mobile Marketer, New York