Adapting CPG marketing for sustainable growth

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As the consumer goods (CPG) sector faces demand uncertainty in 2024, it needs to adopt a new approach to advertising in order to foster innovation and drive sustainable growth. With little room for price increases, 68% of executives are increasing advertising spend as a proportion of revenue, focusing on brand awareness – a strategy that 66% of companies are using to maintain their market position and protect their pricing power.

Privacy-focused personalization
With the increasing complexity of measuring the effectiveness of advertising investment, the industry is turning to personalized digital marketing to ensure a higher return on investment. The disappearance of third-party cookies has not diminished personalization efforts, but has highlighted the value of first-party data for those with a direct relationship with the consumer. Publishers and their partners with direct code-on-page relationships are in a prime position to offer brands actionable insights and targeted engagement opportunities.

Leading CPG companies are gaining an edge by adopting platforms that combine first-party data with predictive AI, crafting personalized marketing campaigns, and refining the user experience with data-driven insights. It’s an approach that reflects consumer expectations, with 82% preferring to see ads that are relevant and tailored to their needs.

Decoding digital attention to achieve brand success
As CPG spending shifts from in-store to online, and in a context of expanding digital content, attention metrics have become a crucial factor in knowing where to capture consumer interest. Studies show that there is a direct correlation between attention and business results throughout the funnel: every extra second of active attention increases brand recall by 7% . Armed with this data, marketers can invest their new budgets with more confidence, optimizing their spend to drive high-impact, profitable campaigns.

Lancôme ’s results from attention metrics are an example of how CPG brands can leverage these insights to maintain market leadership. By combining Brand Studio ’s personalized experiences with data-driven insights from the Onyx platform , Lancôme achieved a significant 57% lift in attention unit score compared to standard display ads. This approach allowed consumers to explore products in a non-invasive space, enhancing brand-building efforts that Lancôme can leverage to gain pricing power.

"These results are proof that care as an indicator can offer quality and scalability."

Nabil Ait Yahia, Commercial Director, Publicis Media

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Media diversification and opportunities on the Open Web
Consumers’ digital journeys are becoming more complex and fragmented across multiple online environments, forcing FMCG brands to re-evaluate their media mix. The industry’s heavy reliance on social media, w media directors email database ith 31.2% of digital advertising budgets allocated to it, exposes brands to algorithm shifts and potential regulatory changes. This makes it increasingly necessary for brands to diversify their media strategy, in order to reduce reliance on a single channel and expand opportunities to engage consumers across multiple touchpoints.

The CPG industry’s reliance on social media advertising overlooks a broader audience on the Open Web, where 59% of US consumers spend time online, with 60% expected to increase their usage even further. By capitalizing on the audience’s moment of consideration when browsing the Open Web, brands have the opportunity to create new demand and drive more customers down the funnel. In this regard, data from Outbrain’s platform indicates a significant 28% increase in mobile click-through rates within the CPG industry from 2022 to 2023, along with improved cost per click, highlighting the potential of the Open Web for advertisers to achieve incremental, quality reach.

CPG brands that adapt to changes in consumer behavior and digital consumption will reap the rewards of their resilience. With Outbrain’s impact-driven cross-funnel solutions, brands can reimagine their reach and secure real attention in the moments that matter most.