Entering 2013, CPG brands are facing increased pressure to demonstrate ROI from their marketing investments. For that reason, digital media’s low cost and tremendous reach make it an attractive option for media planners. However, cost efficiency does not guarantee effectiveness, so it’s important that marketers are strategically managing and analyzing their digital CPG investments to maximize actionable insight and ROI. Below are five tips to get started:
1) Embrace customer intelligence. In addition to the traditional KPIs used to evaluate the effectiveness of digital campaigns, CPG marketers should also consider the value of the customer intelligence gathered from campaigns. Digital marketing campaigns can reveal a wealth of customer intelligence through segmentation and analysis of exposed and respondent audiences, leveraging both first- and third-party data. New insights, such as the example that German Shepherd owners are more likely to buy organic foods, can inform future campaigns and targeting.
2) Get to know your secondary target audience. CPG marketers know their primary audience and target their media accordingly, often using third-party validation or survey partners to measure the accuracy of their targeting. However, even the best targeting tactics miss on some impressions, and it’s important that marketers understand the secondary target they’re reaching as well. Tailoring messaging to that secondary audience can help marketers improve their overall campaign ROI.
3) Measure your brand campaign performance relative to cost. Few digital marketers would get excited about a spike in activity volume without first confirming that the CPA has improved as well. This is because we know that strong performance at too high of a cost won’t deliver ROI. CPG marketers should take the same cost-centric approach to their branding and audience-targeted campaigns. Instead of focusing on 80% accuracy, start with a clear eCPM goal. You may find that the tactic scoring 50% in-target is far more efficient than the tactic reaching your 80% goal.
4) Test behavioral targeting to find the “alternative signals” for your audience. Most CPG advertisers have a well-defined demographic target audience, such as women 25-54 with kids. The challenge is that these key shopper demographic segments are sought after by many brands and products, which drives up the cost for media and data in these segments. This is where creative behavioral targeting puts you at an advantage. Use your first party data and insights you’ve gained from other campaigns to improve your targeting. If you identity the alternative signals that indicate a consumer belongs to your target demographic, you can deliver the same audience accuracy at a more competitive eCPM. Offline purchase data indicating that a consumer bought a box of cereal in the past month may be a more effective way to target a W25-54 than the W25-54 demographic segment.
5) Develop an omni-channel strategy. Today’s CPG shopper is more connected than ever, interacting with media across a range of devices every day. The fragmentation of media poses a challenge for marketers as it is now critical to reach your audience across all digital channels (display, video, social, mobile). Develop an omni-channel strategy to create a seamless brand experience for consumers. Try following your 30-second pre-roll spot with a special display coupon offer for those consumers who were most engaged, or bring display learnings into social by targeting your most effective 3rd party data segments on the new Facebook Exchange. These strategies will help ensure that you’re using these channels cooperatively to deliver a unified customer experience.