Consumers today have many products and brands competing for their attention, which means that the CPG industry is particularly competitive. And in CPG digital marketing, keeping up with emerging technologies as well as rapidly growing consumer demands is a challenge.
The pandemic has changed the way shoppers browse and shop, with a heavy emphasis on e-commerce and online ordering. According to McKinsey, bottlenecks, along with a shift in consumer priorities towards health and safety, condensed five years of e-commerce growth into three months.
These massive changes are the ones that CPG marketers should consider and exploit, above all in planning their 2022 digital strategies. Read on for information that will help you stay on top of relevant trends for CPG digital marketing. And be sure to read to the end of this blog for your 4 tips before you go!
New Consumer Trends CPG Marketers Should Note
Since March 2020, notable consumer trends have emerged. While these trends have been accelerated by the pandemic, they are not dependent on it at all. Even as pandemic restrictions start to ease in North America, consumers are sticking to their new purchasing behaviors. Here are 4 key consumer trends CPG marketers should know:
With the rise of e-commerce and the time spent on mobile devices, m-commerce is a priority in 2021.
EMarketer Research shows that U.S. m-commerce retail sales grew 41.4% in 2020 and will grow a further 15.2% in 2021, to reach $ 359.32 billion. Annual m-commerce sales are expected to almost double between 2021 and 2025.
With many consumers continuing to work from home, the home stay economy will persist until 2022.
When polled by Deloitte, U.S. executives almost universally (95%) see the work-from-home trend continuing and predict that the main buying drivers will be health and safety (92%), trust (92 %) and quality (88%) this year.
Consumers want brands to address sustainability and reflect other core values.
According to the Conference Board Global Consumer Confidence Survey, conducted in collaboration with Nielsen, 81% of respondents around the world believe businesses should help improve the environment, while nearly half of U.S. consumers say they would change their consumption habits to reduce their impact on the environment.
In June 2020, Mindshare found that 68% of American adults believed brands should speak out against racial inequality and injustice, while Visa found that 75% of millennials would support businesses and causes in response to social justice protests. .
Consumers are trying new purchasing behaviors.
The pandemic has led to an acceleration in e-commerce adoption, along with shopping behaviors that make e-commerce experiences frictionless, such as buy now, pay later (BNPL), and flexible payment options. But behaviors aren’t the only new things consumers try, they’re also more open to trying new brands.
Digital Trends Shaping CPG Marketing
We have already highlighted some of the common consumer trends that have emerged since the start of the pandemic. These trends have been noted across all verticals, making them relevant to most marketers. But there are digital trends that are especially important to CPG marketers. Below, we explore how personalization and emerging formats are two key CPG digital marketing trends that are gaining relevance.
In an increasingly digital and uncertain world, personalization is essential to the success of CPG brands. For example, 70% of top DTC subscription brands use product questionnaires to help personalize the customer experience. Quizzes and other personalization tactics help customers select the products that are best for them, increasing the likelihood of conversion and increasing the potential for long-term customer retention.
Another tactic CPG digital marketers can use to improve personalization is contextual targeting. Contextual advertising is a cookie-less method of targeting that leverages content rather than user data to reach the right audience, at the right time. By targeting based on content, you can reach consumers who are in a receptive state of mind. When your ads match the content a consumer is viewing, those ads appear more natural and personalized to the user, which they want.
The pandemic has led to a massive drop in commuting time, and with working from home becoming a permanent norm, the new âhome economyâ is likely to remain. And it is these consumer behaviors that have contributed to an increase in the popularity of new and emerging formats, like digital audio.
A major lesson from 2020 was that digital audio is resilient and adaptable. Commuting was a major driver of the popularity of digital audio, but despite losing that commute time, active digital audio listeners spent more than 2 hours a day with such media in 2020, and more than 70% of American adults have listened to digital audio content. at least once a month last year. We expect the adoption of digital audio to continue to grow in the years to come. By 2025, 67.1% of Americans (218.6 million) will listen to digital audio.
How CPG Marketers Can Drive Results in 2022
With shopping and product discovery moving more and more online, the digital space will become more competitive. This massive shift to e-commerce has created the need for digital marketing strategies that reach out to consumers on a personal level.
CPG’s digital marketers will need to do more to speak directly to the consumer when browsing online, and brands will need a strong online presence and a cohesive digital strategy if they are to remain competitive in a space of. more and more crowded. But moving to the Internet also comes with some unique advantages. CPG brands can collect more detailed data and information about their consumers to support a stronger digital strategy.
Here are 4 tips to keep in mind when building your CPG 2022 digital marketing strategy:
- With rapidly changing consumer buying behavior, make sure your data strategy is fresh and nimble.
Use your transactional data to target new or expired buyers, whose change in buying behavior could be explained by the pandemic. Create personalized segments or try contextual advertising to target âhomeâ consumers in the top funnel – that is, people who browse recipe blogs or are interested in personal care.
- Segment your audience to enable personalization and optimization.
Divide these audience tactics into different campaigns to test performance. Then, optimize towards key performance indicators (KPIs), such as brand awareness or increased sales.
- Reach shoppers at every stage of the customer journey with channels that mimic that journey.
Try to incorporate OTT and digital video into your outreach tactics, and use mobile throughout the funnel. Re-target Video Completion Rates (VCR) with high impact interactive display units that boost your branding. Test performance native ads to mimic the feel of blog content and target blog and product review readers.
- One-size-fits-all doesn’t work in a pandemic world – personalization is key.
Use contextual advertising to reach consumers who are in a receptive state of mind. For example, if you sell cosmetics, use contextual targeting to ensure that your ads appear alongside content that consumers interested in makeup consume, such as blogs that cover makeup trends. This way, your ads are personalized based on the users they are served to.