The consumer packaged goods industry is shifting more of its marketing dollars to the Internet, including setting up interactive sites designed to build relationships with consumers, according to a new report from researchers eMarketer Inc.
Total online spending for the category is expected to reach $470 million this year, up 17% from $390 million in 2005, eMarketer said. That represents 6% of the total consumer-related online ad spending of $7.8 billion expected this year.
Much of that money will be spent on CRM marketing, said Lisa Phillips, senior analyst and author of the CPG Online Marketing report. “Some of the largest CPG marketers are leading the way in CRM marketing,” she says. For example, visitors to Nestle’s Purina web site can put their dog’s picture on the cover of a 2006 calendar or subscribe to podcasts on pet care.
In addition, a lot are using offline campaigns and promotions to drive visitors to product web sites, Philllips said. “Behind the scenes, CPG marketers are spending huge amounts of money on CRM databases to keep customer information fresh and help hone their promotions and new products,” she said.
Product sites also are becoming social networks. For example, Tide.com is now the Tide Fabric Care Network where product care information is available along with a message board and a list of current promotions and offers, eMarketer said. “Engagement was the buzzword in 2005, and it will remain a hot issue in 2006,” Phillips said.
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