Have you ever heard of “CPG advertising?” If you’re a brand that offers products that need consistent replacement or replenishment, especially food products, then you’ve probably heard this term floating around.
If you’re in the dark, don’t worry. We’re going to dive into what CPG means, how CPG advertising works, and why food brands should consider the benefits of advertising their CPG products online.
What is CPG Advertising?
What is CPG? “CPG” stands for “Consumer Packaged Goods.” CPG are items that are consumed or used on a daily basis by consumers that require consistent replacement and replenishment. Common consumer packaged goods include food products, drinks and beverages, clothing items, tobacco, alcohol, cosmetics, and other household products.
Consumer Packaged Goods advertising is very important because just about every consumer alive used consumer packaged goods. Everyone consumed food and uses daily cleaning products at the very least. As such, this market and its niche industries are highly competitive when it comes to advertising space.
Despite going through a recent slowing in growth over time, the consumer packaged goods industry is still one of the most massive sectors in the United States. We can look at incredibly established brands like Coca-Cola and L’Oréal and recognize that they probably aren’t going anywhere, and neither is the consumer packaged goods industry. Although CPG brands generally enjoy decent margins and hefty balance sheets, these brands must constantly fight for shelf space in grocery stores. They must also constantly invest in advertising, to increase their brand recognition.
Why is CPG Advertising Online Important?
Consumer packaged goods and online advertising go hand-in-hand. Online advertising is becoming the standard method for marketing, and consumer packaged goods are no exception on the bandwagon. If a brand decides to settle for more traditional methods of advertising, they may be left in the dust as online advertising only continues to grow.
While consumer packaged goods have typically been sold in traditional physical stores, consumers are turning to online retailers more and more each year. Purchasing goods by simply pointing and clicking is more of the norm now, and consumers can receive a text message or email confirmations that their delivery is on the way. Technology is starting to totally consume how consumer packaged goods are sold. Amazon’s own business services Amazon Fresh and Prime Pantry lets customers purchase consumer packaged goods and enjoy same day or next day delivery. Small and medium-sized food brands are struggling to keep up, but they can reach a certain amount of brand recognition through CPG online advertising.
Keeping Up with CPG Advertising
There are a number of ways food brand can keep up with CPG advertising online:
- Keep an eye on larger brand trends and look into how you can mimic their innovative methods of CPG advertising consistently.
- Recognize that more consumers are purchasing groceries online than ever before, so online fresh delivery options may be worth considering for your specific food brand.
- Consider multichannel and omnichannel business strategies, which involve exploiting online and offline channels to give one’s customer a more in-depth and user-friendly experience. Just as well, smaller brands should consider establishing partnerships with bigger chains to improve their marketing reach.
- Always focus on improving your digital channels and recognizing what your niche target market is. When it comes to the competitive nature of consumer packaged goods, one will need to give a fresh unique take on an old product. And the best way to do this is through an excellent marketing campaign.
- Consider the meal kit and membership meal delivery service models, as they are only going to explode with growth as more consumers move to digital online means to shop for consumer packaged goods.
- Focus on authenticity and brand values when it comes to your CPG advertising and marketing plan. More consumers are becoming more interested in brands that have a mission or dedication to quality that rivals the massive enterprises who have been manufacturing their consumer packaged goods for years. Consumers are getting smarter about where they are spending their money and how they are spending their money, and a good CPG marketing strategy should take that into consideration.
CPG advertising may seem like a losing game at times due to how competitive it can be, but it is absolutely worth investing time and money into for food brands.