Posts Tagged ‘mobile advertising’





The Consumer Packaged Goods Industry and eCommerce

Posted on July 10, 2013 at 9:38 am

It wasn’t very long ago when ordering beauty products or household goods online was considered strange. Now, according to a recent survey by the Grocery Manufacturers Association, 40% of member companies within the association are expected to sell direct-to-consumer online in the future, up from 24% last year. As eCommerce has evolved, so have the expectations of consumers to not only find but also order products online. As a result of this, more consumer packaged goods (CPG) companies are launching eCommerce initiatives, some for the very first time, to meet the expanding needs of their consumers. Here are a few ways CPG companies are evolving to meet these needs…

  • Digital ad spending in the CPG industry is trending upward – A reason for the shift in more CPG manufacturers selling direct-to-consumer through eCommerce sites is the increased digital ad budgets of major CPG brands. More consumers are clicking on digital ads, resulting in the need for a digital location for these ads to click through to. In fact, according to eMarketer, U.S. CPG companies are expected to spend $5.3 billion on digital ads by 2017, experiencing a double-digit growth percentage over the next 5 years.

 

  • Consumers have become more receptive to e-mails from CPG manufacturers – Even over the past 12 months, consumers have become more open to e-mail marketing around CPG brands and their products. According to Experian, the open rate for CPG-related e-mails has increased by 21% from 2012 and the amount of eCommerce revenue directly tied to CPG brand e-mails has increased by 15%. Additionally, both the bounce rate (down 31%) and unsubscribe rate (down 18%) have declined significantly for CPG brands over the past year.

 

  • CPG manufacturers are using mobile to reach younger consumers – With the evolution of mobile technology, more CPG brands are looking to utilize mobile to reach a younger audience. The average consumer who engages with CPG content on mobile devices is led by females (53%) and approximately half of consumers engaging with mobile CPG content are between the ages of 25 and 44. While traditional marketing methods continue to work well for older consumers, this “middle-age” demographic is becoming accustomed to acquiring information when and how they want to on their mobile devices. This demographic is also becoming more likely to engage in mobile commerce instead of using their mobile devices only for product information or showrooming.

 

  • Some CPG manufacturers still value product awareness over digital transactions – Some CPG manufacturers are unique from many traditional online retailers in the sense that most of their product sales come from third-party stores, both online and offline. Product awareness and communication has traditionally been vital to the success of CPG brands, which has resulted in some CPG brands launching “micro-sites” focused on eCommerce as a way to get more information and learn about their consumers. While these sites may not be a pillar of business for CPG manufacturers, it creates an opportunity for CPG companies to cater towards tech-savvy consumers and maximize their marketing efforts by expanding their audience (e-mail, social media, etc.) directly through information obtained via eCommerce transactions.

 

 

In conclusion, the CPG and eCommerce industries have a unique and evolving relationship. While it may be several years until some CPG brands see online sales as a major contributor to their bottom line, the information and experience gained from having an eCommerce site has the potential to become invaluable. As CPG manufacturers look at their analytics and towards the future, it’s becoming more and more apparent that expanding their digital footprint into the world of eCommerce could be vital to the success of some CPG brands moving forward.

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6 eCommerce Trends in Japan

Posted on June 7, 2013 at 10:37 am

Japan has been a country which has continued to innovate when it comes to technology – the world of eCommerce is no different. Unlike other international countries we have covered in the past on this blog, Japan is far from an emerging eCommerce country and has some unique characteristics. Here are 6 eCommerce trends in Japan…

 

1) Rakuten is a major eCommerce leader in Japan – With annual sales over $4 billion, Rakuten is one of the largest internet companies in the world, let alone in Japan. As a company, the Rakuten model has been focused less on pushing goods out the door and more on creating a unique shopping experience by allowing its vendors to customize their product listings and communicate directly with consumers on the site. The company is now expanding outside of Japan, including into the United States.

2) eCommerce sales in Japan continue to rise – According to eMarketer, business-to-consumer eCommerce sales in Japan are expected to grow by approximately $50 million over the next five years to approximately $175 million. Online sales in Japan were under $100 million just three years ago, which could highlight the strong and consistent growth of eCommerce in Japan in the past and moving forward. (more…)

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4 Things to Know About the Mobile Ad Industry

Posted on February 8, 2013 at 10:30 am


Mobile Ad Example

Many online retailers are still attempting to fully understand the concepts and capabilities mobile devices bring to their industry. With the mobile landscape ever-changing, mobile advertising has been at the forefront of growth within the retail industry. Although 9 out of 10 online retailers have a mobile strategy, according to Forrester less than half of retailers currently use mobile display ads, a percentage which will likely increase in the coming years.

With both the digital and traditional advertising industries in a constant state of change, here are four things to know about the mobile ad industry…
1) The mobile ad industry is growing around the world – Few industries are growing at the same speed as the mobile ad industry.  According to Gartner, mobile ad revenue around the world is expected to increase to $11.4 billion this year, an 18.8% increase from last year ($9.6 billion) - last year the U.S. led all countries in mobile ad revenue with over $2 billion spent. Gartner also forecasts that global ad revenue from mobile devices will reach $24.5 billion by the end of 2016, almost three times the revenue generated last year. (more…)

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