Dive Brief:
- EMarketer forecasts that consumer packaged goods (CPG) and consumer products companies are set to spend close to $5.97 billion on digital advertising this year, a 18.2% lift over 2015 and a figure that represents 8.7% of all digital ad spending this year.
- The sector will only lag automotive and entertainment in terms of growth rate.
- Three of the top ten U.S. advertisers come from the sector – Procter & Gamble, L’Oréal and Johnson & Johnson, with P&G coming in at number one among all U.S. companies in ad spending.
Dive Insight:
"What were considered trends in 2015—mobile, digital video, programmatic—are now full-on focuses of advertising efforts in 2016," the eMarketer article on the report explains.
Even as CPG continues to increase its ad spending as a sector, individual companies are branching out from the once agency-driven advertising model. Food Dive this week reported that Mondelez recently announced plans to create more content in-house citing success with campaigns around brands such as Oreo and Sour Patch Kids. It also partnered with BuzzFeed to created branded and unbranded content, as well as Fox around a live broadcast to promote a new type of Stride gum.
As the eMarketer article notes, "In the case of mobile and digital video advertising, brands are catching up with consumers’ habits. In the case of programmatic, they are taking advantage of piles of proprietary and third-party data to better target consumers, especially via mobile and digital video."