CPG Online Ad Spend Lags
Friday, June 26th, 2009
The above IAB Chart does a good job of showing that CPG spending online still lags other segments’ advertising spend. The latest Pew Internet study does a great job showing that 81% of US consumers use the internet for product research and 71% purchase online. If 2/3+ of the online adults are ready, why haven’t we seen a larger corresponding move in media dollars?
Three primary reasons:
- It is hard to buy digital with many fragmented publishers and to many ad formats.
- A transparent set of metrics: Is it the click? ROI? Engagement? What drives consumer product adoption and ultimately sales?
- It takes effort and time to re-evaluate your media mix.
The IAB has done a good job addressing some of the issues with Measurement Guidlines and The Universial Ad Package . Yet, I think what is really pushing us forward is the economic downturn. There is no longer a paper in Denver to buy print ads on. That forces a reexamination and increasingly digital is the winning choice.
