CPG Companies Crank Up Display Ad Spend

  |  June 18, 2009   |  Comments

Packaged goods companies ratchet display ad spending by 57 percent in two years.

Even as their overall ad spend has atrophied, consumer packaged goods companies have boosted their investment in online display advertising by 57 percent in the last two years, according to Nielsen.

The researcher reported yesterday CPG firms have cranked up image-based online ad spending from $99.8 million in Q1 2007 to $156.2 million during the same period this year.

Perhaps more surprising is that Nielsen found these brands spent very heavily with one of the Web's most reputedly brand-dangerous sites: YouTube. The company measured 638 million display ad impressions on the video site, which captured a 24 percent share of all advertising in the entertainment category. AOL.com and Oprah.com trailed with 323 million and 203 million ad impressions, respectively.

The YouTube gains suggest advertisers have become less wary of the site, which they long avoided for fear of associating their brands with potentially offensive content.

"YouTube, as one of the most visible examples of online video, is working hard to monetize their inventory across a number of verticals and Consumer Goods may hold particular promise in that effort," said David Wiesenfeld, VP online marketing solutions, in a statement.

In real numbers, the spending rises are relatively small when compared to CPG spending on other channels. For example, TNS estimates that in Q1 a single CPG advertiser, Procter & Gamble, spent $674 million in all U.S. media, down significantly from the year-ago period owing to cuts in old media. Even so, the figure is more than triple Nielsen's estimate for all packaged goods spending on online display advertising during the same period.

Nielsen's estimates do not take into account many types of online ad spending, such as search and social network integration. Increasingly, packaged goods giants are investing in custom video and other interactive experiences that aren't measured by ad tracking systems such as those offered by TNS and Nielsen.

Some of these are surreal. In one such project, P&G created a video-centric experience for Tampax, in which a 16-year-old boy named Zack wakes up to find his "guy parts" replaced with "girl parts." Hosted at Zack16.com, the experience uses videos, tweets, and other page elements to engage young girls with the Zack's story and with the Tampax brand.

ClickZ Live Chicago Learn Digital Marketing Insights From Leading Brands!
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda, or register and attend one of the best ClickZ events yet!

ABOUT THE AUTHOR

Zachary Rodgers

Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects. 

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Jobs