COVID-19 accelerated the move by many brands to digital channels. And, as consumers became more and more comfortable shopping online, many consumer packaged goods (CPG) brands have been able to rely on performance advertising for customer acquisition. Performance advertising allows CPG brands to create better, more effective connections with consumers, increase brand engagement and scale sales.
Performance Advertising Allows CPG Brands To Kick Off New Campaigns
Performance advertising, which leverages analytics from clicks, conversions and in-between actions, has given CPG brands the first-party data they need to see where their investments are paying off and confidently optimize multichannel campaigns. According to Greg Lyons, CMO at PepsiCo, “We need to be accountable for the ROI for the money that we spent. We are on a journey to make better and faster decisions, and in-house data help us on that journey.” Pepsi started moving toward more performance advertising strategies throughout the last several years, giving the company the flexibility and reach needed to dive deeper with digital innovation, introduce new products and try out new marketing strategies. Added Lyons, “We were able to [adapt and try new strategies] in record time because we had the data at our fingertips and we weren’t waiting for that yearly report.” The company attributes ROI growth of 66% over the last several years to an increased reliance on performance advertising.
CPG Multichannel Strategies Include Brand Building And Performance Advertising
As CPG brands increasingly looked for ways to reach consumers impacted by the pandemic, CPG brands wanted to create connections and see results. Many CPG brands created more consumer focused brand purposes, while others made corporate social responsibility part of their larger missions. Meeting both the needs and wants of consumers is a priority for CPG brands looking to performance advertising and “relentless innovation” to scale positive engagement and sales. “If we’re not making people’s lives better in the food that we deliver, then we’re not really doing our job,” said Brad Hiranaga, CMO of General Mills. “Our ‘force for good’ statement is now part of our brand anatomy. We have to be thinking bigger about our jobs and working collaboratively.”
The effectiveness of performance advertising allows brands to be nimble and de-risk new initiatives, creating opportunities for growth and forward-thinking momentum. Whatever the channel, measuring consumer actions gives advertisers the consumer data they need to optimize campaigns for enhanced ROI. “We can craft a vision of growth while still understanding what needs to be done today,” said Hiranaga.
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Digital Media Solutions® (DMS) is the leading global adtech company leveraging innovative, performance-driven brand and marketplace solutions to connect consumers and advertisers. DMS helps brands flourish by capitalizing on consumer intent and engagement, deploying sophisticated adtech with big data intelligence to connect brands with consumers at the moments they’re most ready to take action, using messages proven to resonate.
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