Search Marketing Blog
Consumer Packaged Goods Finally Embrace the Internet
In a report today, eMarketer is reporting that the marketers of Consumer Packaged Goods (i.e., food, beverages, cosmetics, baby care, etc.) are shifting a greater amount of their advertising budgets to online search marketing and other interactive media. In fact, these companies are projected to spend $920 million on all types of online advertising this year, which is an increase of more than 33 percent compared to 2006, according to this eMarketer report.
The following chart reveals the projected tremendous increase in marketing dollars from Consumer Packaged Goods to be spent on online advertising over the next five years.
Note that by 2011, online advertising by Consumer Packaged Goods is expected to reach $1.8 billion, resulting in a compound annual growth rate of 20.9%.
The important finding from this report for search engine marketing firms is the recent phenomenon of large number of consumers searching online for information pertaining to Consumer Packaged Goods, and then posting their opinions to blogs and social networks. This represents a significant opportunity to actively promote traditional packaged brands through non-tradition media.
Watch-out television and print!More and more “real world” companies are embracing the ability to target and measure online consumers, which is proving to be a boom for interactive advertising firms and search engine marketing companies.
