Retailers shift their ad spending from TV, radio and print ads to digital ads.
Jupiter Media Metrix says consumer packaged goods companies could boost online grocers by using the Internet as a testing ground.
Jupiter Media Metrix says the online grocery segment will have 2% of the total U.S. grocery sales by 2006, despite the fact the segment has struggled to survive on the Internet. The research company predicts that online grocery sales will grow from $1 billion in 2001 to $11.3 billion by 2006. Jupiter says the consumer packaged goods manufacturers could save the online grocery business by embracing the online channel and by using it as a testing ground for new products, packaging and pricing. The online grocery market grew by nearly 200% between 1999 and 2000 but the high cost of expansion and the volatile economy caused Jupiter Media Metrix to lower its 2001 grocery sales forecast by 50%, from $2 billion to $1 billion. Jupiter lowered its 2005 forecast by 61% from $18 billion to $7 billion.