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New Age Marketing – The Digital Paradigm

As the consumer is becoming more and more engaged in the digital world, the industry is finally getting serious about digital media. Leading companies have cut measured U.S. media spending overall last quarter, while spending on internet display ads has more than doubled, according to data from TNS. It is a great way to connect with consumers and really have much deeper ongoing relationships with them.  Ability to see a measurable impact on sales has allowed them to justify even more spending on digital down the road. The Interactive Advertising Bureau, estimated that CPG digital spending shot up more than 60% last year to $1.5 billion, increasing its still-modest share of all digital media spending by two percentage points in a year to 6%.
Interestingly its impact on spend on other marketing mix components is varied. Spend on trade promotion continue upward spiral in spite of increasing cost and complexity while network-TV spending has declined. With the advent of better data and ability to view measurable impact will ultimately will be what it takes to get consumer package-goods brands to spend more on digital. It would be interesting to see how digital revolution will change the marketing game especially the trade promotion area and how CPG companies and retailers will utilize the digital channel to extend the reach and effectiveness of trade promotions.

Posted by Jayalakshmi Subramanian on June 26, 2009 02:14 PM |

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