Advertising Data: Mobile In-App, QSR, and CPG

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Mobile In-App Advertising Statistics and Projections

We were able to find multiple statistics, both actual and projected, for mobile in-app advertising in 2019. Additionally, we found statistics about projections for mobile in-app advertising pertaining to years 2020 and beyond. Overall, the statistics clearly showed strong current and projected growth for mobile in-app advertising.

Mobile In-App Advertising Statistics & Projections

2019 Statistics

2020 & Beyond Statistics

  • It's projected that by 2025, the global market size for in-app advertising will amount to $220 billion.
  • The projected compound annual growth rate for "the global in-app advertising market" between 2019 and 2025 is 18.8%.
  • By 2020, it's projected that spending on "[i]n-app advertising will rise to a staggering $201 billion."

Research Strategy

The statistics we found for 2019 are a combination of actual and projected data points. Each projected statistic was expressly noted as such, in order to distinguish those values from the actual statistics we were able to find. We tried to find all actual statistics, but due to the limited availability of that information, we had to expand our research to include projected statistics as well. With regard to 2020, we looked for statistics specifically pertaining to that year. We were able to find two statistics pertaining to 2020, so we had to expand our research beyond 2020 in order to find additional statistics. Some of the sources of the information we cited to in our research findings above came from Forrester, Mobile Marketer, PR Newswire, and Clearbridge Mobile, among others.
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Top Mobile In-App Advertisers

After an extensive search we were unable to find six top mobile in-app advertisers according to the amount they spend. However, based on our research we discovered that Proctor & Gamble, Unilever, General Motors, L'Oreal, Renault-Nissan-Mitsubishi Alliance and Coco Cola are the largest global advertisers in 2018 by global spend.

Largest Global Advertisers By Global Spend:

Useful Findings:

  • According to the study conducted by Forrester Consulting on behalf of PubMatic, buyers are allocating nearly a quarter of digital advertising budgets to mobile apps in order to capitalize on increased targeting and customer engagement.
  • App Annie, an app analytics and app data industry company has suggested that 60% more apps will leverage in-app advertising in 2019.
  • Verizon Communications, American Express Company, Capital One Financial Corporation, Zulily Inc., Citi, Cox Communications, State Farm Insurance Companies are some of the top digital display spenders.

What Information Is Not Available:

  • Information on six top mobile in-app advertisers according to the amount they spend, is not available.

Research Strategy:

Our first strategy was to look for mobile in-app advertising industry reports. We looked for information on sites like grandviewresearch, marketresearchfuture, IBIS World, Euromonitor among others. Our aim behind this strategy was to find information on the top or key players in the mobile app-industry by spending in market reports. With this strategy we were able to find mobile in-app market report that provided information on the market size and growth of the mobile in-app advertising industry. However, there was no information on the top spending companies. At most, we found information on the key players in the mobile in-app industry. We thought this strategy may work as sites like these conduct research on various topics and may have published this information.

Our second strategy was to look for top six advertisers according to the amount they spend globally and then see if they have a significant in-app presence. During our search we came across the top companies by advertising spend on sites like campaignlive. We found that Procter & Gamble, Unilever, General Motors, L’Oréal are some of the top global advertisers by spend. However, there was no information or data points found on mobile in-app advertising spend. Our objective was to find the top global companies by advertising spend and use the list to rank the top six in-app advertising companies globally by relevant metric like percentage spend.

Our third strategy was to look for information on websites of advertising associations like International Advertising Association, Interactive Advertising Bureau, among others. Our goal was to find reports, or publications that would have provided the required information. However, this strategy did not work as there was no relevant information found on the top companies that are spending most on mobile in-app advertising. The information we found was about type of digital ad and their revenues. We thought that this strategy may work as such site publish information on the advertising industry that empowers the media and marketing industries to thrive in the digital economy and may have published such information.

We also looked for articles and media publications on the mobile in-app advertising industry. We searched for information on sites like appdevelopermagazine, businessofapps and appsflyer, among others. Our aim was to find comments from industry experts and/or excerpts from reports/publications to devise such information. We hoped that this strategy would have worked since sites like these publish information on the latest app development and app industry news, data, and resources and may have published this information. But, this strategy was not fruitful as the information we found was about mobile in-app industry revenue, trends and projections.

As a last resort, we decided to expand the scope of our research and look for information on top mobile in-app advertisers by other metrics like ratings, awards, etc. We looked for reports and articles on sites like businessinsider and winmo among others. Our idea was to look for information on the top companies in-app advertising and rank the top six by relevant metrics. This strategy also did not work as there was no such information found and at most we could find information on top digital display spenders and companies that are doing mobile advertising right.
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In-App Advertising Goals

Three goals companies plan to achieve when utilizing mobile in-app advertising are to scale brand awareness by application of programmatic mobile advertising, which is said to account for 85% of the display advertising market. Included as well are driving sales, since $4.2 trillion global sales are forecast for 2019 by shoppers on mobile devices, and generation of traffic/leads to landing pages.

Scaling Brand Awareness

To Drive Sales

Generate Leads/Traffic to a Landing Page

Research Strategy

We searched relevant sources like data statistics and publications available to us in the public space, to decipher three goals companies plan to achieve by using mobile in-app advertising. Our first source was able to provide more than three objectives that companies should aim for, before delving into a mobile in-app advertising. To describe these goals, why they are considered goals and some metrics used to measure their achievements, we accessed relevant publications and statistical reports that aided us to adequately answer the request.


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Mobile In-App Advertising Trends

Three trends in mobile in-app advertising are reinforced safety and security, split-second machine learning, and in-app ad spend through videos.

Reinforced Safety & Security

AR, VR, & 3D Video Tech Fueling In-App Ad Spend

  • Vdopia claims is an example of an ad network in the digital video ad space. The users are capable of controlling ads by using various options such as mute, play, and close.

Split Second Machine Learning


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QSR Advertising Statistics and Projections

We were able to find multiple statistics, both actual and projected, for quick service restaurant (QSR) advertising in 2019. Additionally, we found statistics about projections for QSR advertising in the 2020-and-beyond range. Overall, those statistics showed that QSR advertising is growing, especially with regard to digital advertising.

Quick Service Restaurant Advertising Statistics

2019 Statistics

A. Statistics About QSR Collectively

  • An article published by QSR magazine in June 2019 stated that "[o]nline activities currently comprise $753 million in quick-service ad spending."
  • For 2019, it was projected that QSR "total local advertising spend" would amount to $3.9 billion.
  • Digital advertising was projected to account for 36.1% of all QSR advertising in 2019.
  • The following statistics were projected for 2019 pertaining to the top-five advertising channels (based on percentages) that were expected to account for the most QSR local ad spend: (1) Direct mail (24.9%); (2) Online (14%); (3) Television (12.9%); (4) Mobile (12.8%); and (5) Radio at 10.2%. Those were the only channels projected to register double-digit percentages.
  • Among the 10 companies (all industries) that spent the most money on TV advertising in January 2019, QSR chains accounted for half of those companies.

B. Company-Specific QSR Statistics

  • Out of all companies (all industries) that advertised on TV in April 2019, McDonald's spent the most money ($50 million). That record marked "the second time in 2019" that McDonald's was the company that spent the most on monthly TV advertising.
  • In January 2019, Taco Bell spent $64,384,806 on TV ads. The company's TV ads aired 16,162 times, with 3,137 primetime airings.
  • McDonald’s TV ad spend totaled $52,648,945 in January 2019. Those TV ads aired 11,386 times within the month and 1,759 aired in primetime.
  • In January 2019, Burger King spent $41,454,270 on TV ads. The company's TV ads aired 19,986 times, with 3,665 primetime airings.
  • Subway's TV ad spend totaled $30,876,363 in January 2019. Those TV ads aired 6,765 times within the month and 1,421 aired in primetime.
  • In January 2019, Wendy’s spent $27,641,601 on TV ads. The company's TV ads aired 11,970 times, with 2,242 primetime airings.
  • KFC's TV ad spend amounted to $17,538,636 in January 2019. Those TV ads aired 6,450 times within the month and 1,197 aired in primetime.

2020 & Beyond Statistics

  • Between 2019 and 2023, it's projected that QSR ad spend will increase by $47 million.
  • The projected compound annual growth rate for QSR ad spend from 2019 through 2023 is 0.3%.
  • It's projected that digital advertising will attain compound annual growth of 5.3% between 2019 and 2023.
  • By 2023, it's projected that digital advertising will account for 43.8% of all advertising in the QSR sector.

Research Strategy

The statistics we found for 2019 are a combination of actual and projected statistics. Each projected statistic was expressly noted as such, in order to distinguish those values from the actual statistics we were able to find. We tried to find all actual statistics, but due to the limited availability of that information, we had to expand our research to include projected statistics as well. With regard to 2020, we looked for statistics specifically pertaining to that year. However, we didn't find any such data. Accordingly, we expanded the scope of our research to include projections beyond 2020, which we were able to find. Some of the sources of the information we cited to in our research findings above came from industry source QSR magazine, advertising source BIA Kelsey, and Skift.
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Top QSR Advertisers

The top six QSR companies, in order of advertising spending, are Dunkin', McDonalds, Subway, KFC, Taco Bell, and Domino's.

Top Six QSR Advertisers Based on AdSpend

Research Strategy

To answer this request, your research team looked at the QSR report for the top 50 fast-food chains in America, then referred to individual company data to see what their advertising spending for the 2018 fiscal year was. For publicly-held companies, we looked at their annual reports. For privately-held companies, where there was no official figure published, we turned to third-party sources for our data including Statista.
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QSR Advertising Goals

Quick service restaurants (QSRs) vary widely in their niche, area of operation, and corporate size. That being said, there are several standard goals that they share when it comes to advertising -- namely, increased consumer engagement, building brand awareness, and managing PR crises. Different situations will dictate different primary goals, as outlined in this research brief.

Goal 1: Increase Consumer Engagement

  • One of the primary goals of QSR advertising is to boost consumer engagement, or the likelihood and frequency of a specific customer dining at a restaurant.
  • By doing so, a restaurant hopes to increase foot traffic, and revenue as a result. The primary mode of advertising for achieving this goal is through local targeting -- which is on track to garner $4 billion in ad spend by QSRs in 2019.
  • The method with the largest share of local ad spend is direct mail with 24.9%, while online spend holds a 14% share. By 2023, local QSR ad spend is expected to hold an average annual growth rate of 0.3%, led predominantly by digital advertising at a 5.4% growth rate.
  • The primary metrics to determine the efficacy of local advertising would include foot traffic and overall revenue at branch locations.

Goal 2: Increase Brand Awareness

  • Brand awareness is the objective and/or subjective measure of how well-recognized and thought-of a business is in its region of operation.
  • Brand awareness can determine the long-term success of a business. The greater the brand awareness, the more repeat customers that will be gained.
  • Metrics commonly used to measure the efficacy of brand awareness campaigns are social engagements and content sharing for online advertising, and viewer attention scores for television ads.

Goal 3: Mitigating a PR Crisis

  • Food service companies always have to be prepared for a health crisis. One of the primary goals of advertising in these situations is keeping the impact of these crises to a minimum.
  • Public health crises can cost a company millions in lost sales. Controlling the fallout with advertising can help to lessen the blow back on the business and its stakeholders. The leading objective is to maintain and build trust among the customer base and the public at large.
  • One metric to measure the effectiveness of crisis management is social engagement. The more engagement, the more trust can be built with the customer base.
  • It is important to consistently monitor various social hashtags and their virality. The more viral a negative hashtag, the more damage control needs to be performed.

Research Strategy

In order to determine primary objective, or goals, associated with QSR advertising, the research team first appealed to leading industry publications -- namely QSRMagazine. QSRMagazine, in turn, drew from industry studies by QSR consulting companies such as BIA Advisory Services that delved deeper into the growth of QSR advertising along various categories of goals and the most effective methods of monitoring their progress.
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QSR Advertising Trends

The research is about quick-service restaurants advertising trends. The trends include integration with various online delivery platforms and having an active social media presence.

Integration with Various Online Delivery Platforms

  • Currently, customers don't like dining out but instead prefer ordering food online to be delivered to their doorsteps. Restaurants that have integrated themselves with online delivery platforms increase the scope of their potential customers. A large part of the quick-service restaurant orders is mainly through online ordering. Online delivery platforms include Swiggy, Zomato, FoodPanda.
  • In 2017 food delivery was a $43 billion market and is expected to rise to $220 billion by 2020. According to a National Restaurant Associaton, 74% of the millennials prefer delivery to dinning-in. Restaurants need to maximize their delivery partner integrations in order to capitalize on the market share.
  • According to BRP and Windstream Enterprise, 20% of diners use pre-order options. They found that 32% of millennials use mobile pre-ordering. 53% of millennials' decisions on the restaurant are based on digital technology since they can search the menu online and read reviews according to the study.
  • Integration with Various Online Delivery Platforms is a trend because mobile apps have completely made an impact on the restaurant industry. According to App Annie’s data, in 2018 consumers ordered drinks and food through apps a rise of 150% from 2016. Global downloads for food delivery apps such as UberEATS and Zomato has risen by 65% in 2018 versus 2016. India had the highest growth of 900% and 255% and 175% Canada and the United States respectively as per the research.
  • McDonald’s is one of the quick-service restaurant that uses mobile delivery apps. In 2017 McDonald's launched McDelivery after getting into partnership with UberEats and invested in the 2018 world cup to boost its adoption. Their efforts bore fruits since by July 2018 the use of the app rose. Their partnership with UberEats enabled them to hit 5,000 United States locations in 2018.

Having Active Social Media Presence

  • Social media marketing can not be ignored at the moment as is a big influence and determinant current marketing. Social media allows restaurants to get in touch with both existing and potential customers. It is important for quick-service restaurants to have social media pages such as Twitter, Facebook, and Instagram to aid in their marketing. The pages will allow the restaurants to take pictures of the various food and drinks and upload them for the potential customers to see.
  • According to the New York Times, 72% of consumers make restaurant and food-related decisions based on the comments and photos shared on Facebook. The urge by customers to connect with each other through social media is on the rise and is taking advantage of it given its benefits.
  • Quick service restaurants took 57% of the mentions on social media sites about the food and beverage industry according to Smart Insights and Clutch. Customers prefer and will recommend restaurants that replied to them on social media promptly. The customers rely on social media reviews when making decisions.
  • A large percentage of social media users follow at least one business on Instagram. Pizza, sushi, and burger are the most-posted food on Instagram. Restaurants should post on Instagram at a time that the post will be viewed by most people.
  • Restaurants have the highest number of engagements in comparison with other industries. Food and drinks take the lead in the mentions with a 32 percent share. Quick service restaurants can add photos to their tweets to get 89% more favorites and 150% more retweets according to AdWeek hence making it a trend
  • Kentucky Fried Chicken Philippines has implemented a couple of strategies on their social media pages. KFC Philipines during the holiday seasons crafted a video based on Christmas and posted it on their Facebook page. The video got more than 15,000 engagements and 900,000 views.



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CPG Advertising Statistics and Projections

According to data published by eMarketer, the consumer packaged goods (CPG) advertisers in the UK are projected to spend $2.49 billion (£1.87 billion) on digital ads in 2019, which reflects a 10.3% increase year over year. The Digital Ad spend growth of the UK CPG advertisers is likely to slip into single digits in 2020, and the CPG advertisers are projected to spend $2.72 billion (£2.04 billion) on digital ads in 2019, a 9.2% increase year over year.

2019 CPG Advertising Statistics

  • Data from eMarketer indicates that the consumer packaged goods (CPG) advertisers in the UK are projected to spend $2.49 billion (£1.87 billion) on digital ads in 2019, which marks a 10.3% increase year over year.
  • Also, the share of CPG companies' digital advertising spend in the UK region is projected to be 12.7% of the total digital ad spending in 2019. The same has been on a downward trajectory when compared to 12.8% CPG digital ad spend share in 2018 and 13% each in 2017 and 2016.
  • Among the various digital advertising formats, 'Display' is likely to be the most dominant format for CPG advertisers in 2019 in the UK region. A vast majority of digital spend, almost 77.5% or $1.93 billion (£1.45 billion), is projected to be spent on this type of digital advertising by the advertisers in the UK.
  • 'Search', on the other hand, is expected to account for just $0.38 billion (£0.28 billion), or 15.2% of the CPG digital ad spend.
  • In terms of devices, CPG brands are projected to spend 78.2% of their digital ad budgets on mobile in 2019, compared with 21.8% on desktop/laptop ads. This tantamounts to a mobile spend of $1.95 billion (£1.46 billion) and ad spend of $0.54 billion (£0.41 billion) on desktop/laptop ads by UK CPG advertisers.
  • CPG advertising in the US is growing at a slower rate than most other ad spending verticals. CPG advertisers in the US are expected to increase their digital ad spending by 17.3% in 2019 as compared to total US digital ad spend growth of 19.1%. The primary reason for this slowness in CPG ad spend, is escalating private-label competition in the US and proliferating M&As in the CPG space, which is likely to squeeze ad budgets.
  • CPG industry is likely to end up in the fifth position in terms of 2019 digital ad spend in the US, lagging behind Retail, Automotive, Financial Services, and Telecom industries.
  • CPG advertisers in the US are spending more on search as consumers increasingly shop for CPG products online. Search ad spend, on the other hand, is expected to increase by 27.6% in the CPG sector in 2019.
  • In addendum, mobile ad spending by CPG retailers in the US is on an upward trajectory. US CPG advertisers are projected to spend $7.54 billion on mobile ads in 2019, up 22.8% from the previous year.
  • According to an analysis by eMarketer, the share of the US CPG industry in the Mobile Ad spending is estimated to stand at 8.7% while the share in the digital video ad spending is expected to be 10.1% in 2019.

2020 CPG Advertising Statistics

  • The Digital Ad spend growth of the UK CPG advertisers is likely to slip into single digits in 2020, and the CPG advertisers are projected to spend $2.72 billion (£2.04 billion) on digital ads in 2020, a 9.2% year over year increase.
  • According to the data in the latest eMarketer report, the share of CPG companies' digital advertising spend in the UK region is projected to be 12.6% of the total digital ad spending in 2020. This will continue the down trend visible in past years, making a decline of 0.1% YoY.
  • The US CPG digital ad spend is likely to show a tepid growth in 2020, growing by just 15.1% in 2020. The ad spend growth will thus fall by 2.2% YoY (17.3% in 2019) according to projections by eMarketer.
  • In 2020, the US CPG industry is likely to be overtaken by the US travel industry in terms of digital ad spending. Travel-related companies are likely to spend $12.97 billion on digital ads in 2020, while CPG firms will spend $12.80 billion.
  • Other Useful Information on CPG Advertising

  • An analysis from Digiday demonstrates that online grocery advertising is becoming a bigger priority for CPG brands, and hence media agencies are spending more CPG ad dollars on online grocers than ever before. In addendum, the advertisers spending the most in the space are generally larger CPG brands that have struggled with the rise of DTC brands.
  • Instacart, which is one of the leading online grocery shopping websites in the US, has partnered with more than 1,000 brands, including 100% of the top 25 CPG brands for advertising.
  • According to a report from Forrester, CPG brands have historically not spent as much in digital advertising because of measurement challenges, but Amazon is starting to win over them with data on last-mile conversions.
  • Considering data from CNBC, CPGs are moving 50% to 60% of their Google search budgets to Amazon, adding up to many hundreds of millions of dollars per year and this shift is more pronounced in CPG as opposed to other big advertiser categories like automotive, travel and entertainment, etc.
  • Quotient is one of the leading marketing tech companies that leverages proprietary promotions, media, and audience and analytics platforms to deliver personalized digital promotions and ads for CPG companies. The company has executed over 300 campaigns for 150 CPG companies, using social media, the grocer's digital properties, and large third-party publishers.

Research Strategy

The research team utilized industry publications such as the eMarketer, from which we derived all the statistics and projections for 2019. The reason why only projections are available is that the year is still in progress, and most of the reports were compiled during the early half of the year, setting up estimates/projections for the whole year. Thus, no actual numbers are available for 2019.
We also explored articles from Forbes, WSJ, Live Mint, Bloomberg, Business Insider, etc., advertising blogs and websites such as AdAge, Adweek, Marketing Daily, Advertising Age, Unbounce, and Adland, as well as research reports from Nielsen, Statista, Deloitte, and Mckinsey among others from which we found some useful information apropos of the CPG advertising and include the same in the report.

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Top CPG Advertisers

Based on their global advertising spend in the year 2018, the top six CPG (consumer packaged goods) advertisers are Procter & Gamble, Unilever, L’Oreal, Coca Cola, Nestle, and Reckitt Benckiser.


#1. Procter & Gamble (P&G)

  • In 2018, Procter & Gamble's global advertising spend totaled $6.9 billion.
  • P&G is ranked third on the list of the top CPG companies in the world.

#2. Unilever

  • Unilever's global advertising spend in 2018 amounted to approximately $4.1 billion.
  • Unilever is ranked fifth on the list of the top CPG companies in the world.

#3. L’Oreal


#4. Coca Cola


#5. Nestle

  • Nestle's global advertising spend in 2018 was $2.4 billion.
  • Nestle is ranked number one on the list of the top CPG companies in the world.

#6. Reckitt Benckiser (RB)

  • Reckitt Benckiser's global advertising spend in 2018 amounted to $2.0 billion.
  • RB is ranked number 44 on of the list of the top CPG companies in the world.


Research Strategy:

To find information on the top CPG advertisers, we first located a list from Consumer Goods of the top 100 CPG companies in the world. We then searched for reports and publications to find the top CPG advertisers and came across relevant information on Campaign Live. This report included data on the top advertisers in the world, along with their advertising expenses.

From the list of top advertisers, we identified the CPG brands that were also listed in the article from Consumer Goods and provided the top six CPG advertisers based on advertising spend.

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CPG Advertising Goals

Three goals companies have for CPG (consumer packaged goods) advertising include consumer engagement, create brand awareness, and to achieve business goals. Below are the detailed findings.

CPG Advertising Goals

1. Consumer Engagement

Description:

  • CPG brands have primarily shifted focus from building loyalty with their existing buyers to acquiring new buyers in pursuit of brand growth.

Why it is a Goal:

  • Consumer engagement is one of the most effective ways for brands to impact both current and future sales. Also, it helps a company to distinguish its brand(s) from its competitors.

Metrics Used to Measure the Achievement of the Goal:

  • CPG companies use ROI or ROAS to measure the achievement of consumer engagement.

2: Create Brand Awareness

Description:

  • CPG companies want to create awareness of their brand(s) as it is a key step in promoting a new product or reviving an older brand.

Why it is a Goal:

  • The primary objective of building brand awareness is to make consumers think of the company's brand first when they are shopping.
  • By creating awareness of a brand, CPG companies can make their products stand out in the market compared to those of their competitors.

Metrics Used to Measure the Goal:

  • P&G, the world’s largest advertiser, is measuring the reach of its products to consumers, and it wants to increase the penetration of its brands into the market to increase the volume of search queries around them (brands).
  • Halo Top, a CPG company, has approximately 750,000 followers on Facebook and 680,000 followers on Instagram.

3: To achieve Business Goals

Description:

Why it is a Goal:

  • CPG companies want to deliver the top-line growth and treat marketing as a value driver rather than a cost, as they feel the need to position marketing as a growth driver for the company.

Metrics Used to Measure the Goal:


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CPG Advertising Trends

The two trends for CPG consumer packaged goods advertising are that CPG advertising is increasingly moving towards digital and companies are concentrating on mission/value-based advertising.

CPG Advertising is increasingly Moving Towards Digital

Description
  • As per this trend US consumer packaged goods (CPG), advertisers are continuously increasing their digital ad spending.
  • This is partly done to contend with industry consolidation, working with external parties (like retailers and vendors) when leveraging consumer data, and making sense of the rise of interactive shoppable ads.
  • According to Cadent Consulting Group, packaged-goods marketers now spend more on digital than all forms of traditional advertising combined to follow this trend.
Why a Trend
  • As consumers increasingly shop for CPG products online, search ad spend by CPG companies has increased by 27.6% in the CPG sector in 2019.
  • Overall, US consumer packaged goods (CPG) advertisers have increased their digital ad spending by 17.3% to $11.12 billion in 2019.
  • Also, CPG advertisers were estimated to spend $7.54 billion on mobile ads in 2019, up 22.8% over the previous year.
  • Between 2016 and 2019, CPG industry's digital ad spending increased from $6.24 billion to $11.12 billion.
  • Also, between 2012 and 2017, CPG companies decreased their share of traditional ad spending in overall ad-spend from 25.4% to 13.3%, while the same for digital increased from 7.1% to 19.9%.
Companies At The Forefront Of This Trend
  • When the consumer goods company Procter & Gamble saw an e-commerce opportunity in Hong Kong, they partnered with HKTVmall using Facebook Collaborative Ads.
  • This partnership increased online sales by 3.7 times without P&G having a regional e-commerce website of its own.
  • Similarly, another reputed CPG firm Reckitt and Benckiser wanted to increase online sales for its products on a partner’s e-commerce sites by running Facebook Collaborative Ads.
  • These ads resulted in 3 times lift in sales for Reckitt and Benckiser in Pakistan.

CPG Companies Are Concentrating On Mission/Value-Based Advertising

Description
  • According to Gourmetads, consumers are becoming more interested in brands that have a mission or dedication to quality.
  • Therefore, consumer brands that are hitting their stride and doing well are those with a very authentic mission behind them.
  • Following this trend, successful brands are those who are putting out in the open on what their mission is, who their customers are, and how they're serving them.
Why a Trend
  • This has been considered a trend as, according to an article published in Forbes, brands that have a very authentic mission behind them are taking market share from these bigger CPG companies, changing the market, and often getting acquired by the bigger companies.
  • Also, as more and more consumers are getting smarter about where and how they are spending their money, CPG companies are taking into consideration to promote their mission to quality that rivals the massive enterprises.
  • According to Globalwebsindex, ensuring that the brand is transparent about its mission creates an opportunity for a new dialogue with the customer.
Companies At The Forefront Of This Trend
  • The CPG unicorn 'The Honest Company' made a name for itself by promoting natural, sustainable ingredients in its baby products.
  • The company is considered to be a significant example of CPG in this research as it attained unicorn status, i.e. valuation of $1 billion within 3 years of its beginning in 2012.
  • The "Honest Company" focuses on creating safe and responsible products for babies and the homes they live in.
  • The company highlights its mission is to empower people to live healthy, happy lives."
  • In one of its most viewed ads for baby products, the company promotes the attribute 'safe' at the very beginning.
  • Another company "Seventh Generation" emphasizes plant-based ingredients and recyclable packaging.
  • The company is considered to be a significant example of CPG in this research as it was acquired by CPG giant Unilever in 2016.
  • While the 'Seventh Generation' TV ads involve the promotion of recycled toilet paper, the company has also declared to donate its six-figure ad buy to the Youth Climate Movement for the week of September 16, leading up to the Global Climate Strike on September 20.
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Advertising Trends

Two key trends in advertising include the rise of digital video advertising as well as the influx of influencers and increase in popularity of influencer advertising.

1) Digital Video Advertising TakeOff

Description

  • Digital video advertising is a current trend in the field of digital advertising that is likely to continue in the future, with about 86% of all marketers utilizing video content to help them delight, advertise, and enlighten their target audience and consumers.
  • There has been escalating usage of shorter video ads, or bumper ads, by brands to capture consumer attention. As every medium has witnessed the amount of time individuals allocate towards viewing ads, brands have tested "short video ads that aim to beat the skip button and serve short attention spans."
  • In acknowledgment of the digital video trend, especially bumper ads, Google and YouTube have released bumper ads that are six seconds in length to provide brands with an innovative means of quickly expanding their reach.
  • Mobile video serves as the quickest developing video type for consumers, and it is primarily bolstered by the growing dimensions for smartphone screens. Another driver for this trend is that video is very effective in engaging consumers. Additionally, viewing videos while being mobile consumes the largest share of consumers' time, and hence, in 2019, advertisers are anticipated to spend about $30 billion on mobile video advertising.

Why it is a Trend

  • According to IAB’s 2019 Video Advertising Spend Report, digital video ad spend has continued to rise over the years with advertisers planning to spend 25% more of their funds on digital video than they have in the past. Within the next year, almost three in four buyers (75%) intend to expand their spending for digital video ads.
  • The share of global digital advertising spending as a percentage of total media advertising expenses has grown from 35.2% in 2016 to 44.9% in 2019 and is expected to reach 49.6% by 2021.
  • As per a report from Emarketer, ad spending on digital video has been growing and is projected to be $36.01 billion in 2019, representing a growth of about 20.8% over the previous year. In the United States, the volume of digital video viewers as a percentage of the total population has increased swiftly from 68.5% in 2017 to 71.2% in 2019 and is expected to reach 73.1% by 2021.
  • According to Vidooly, in the past five years, "the number of video uploads and video watch time on social platforms have quadrupled" and more than 87% of marketers choose to invest their time and funds in digital video advertisements.

Companies at the Forefront

  • AirBnB is an example of a company that is at the forefront of leveraging digital video advertising. The company's digital advertising approach is mostly involves user-generated videos and images on Twitter, Instagram, and Facebook, along with how-to posts targeted at prominent city guides and owners.
  • The company is known for launching digital video campaigns with accurate planning and targeting and consequently has churned out highly successful digital video campaigns. One example is an ad campaign for Brazil which resulted in 142% growth in volume for branded search terms and a 14% increase in bookings.


2) The Influx of Influencers & Uptick in Influencer Advertising

Description

  • The ascent of social influencers and the rise in influencer advertising is another global advertising trend. Among advertisers, 70% of them are collaborating with influencers, while 40% intend to expand their influencer budgets in the near future.
  • Due to the burgeoning popularity of influencer advertising and growing impact that influencers have upon the consumer journey and their purchase decisions, influencer marketing is "being incorporated into broader cross- channel campaigns and strategies."
  • Besides famous individuals with large social media followings (e.g., Kylie Jenner, Kim Kardashian West), brands are recruiting other major influencer types, such as "micro- and nanoinfluencers, kidfluencers, gaming influencers, and virtual (computer-generated) influencers."
  • According to Influencer Marketing Hub, Instagram is the platform that is trending the most for influencer advertising with 79% of labels primarily using it to employ influencer campaigns, followed by Facebook (46%) and YouTube (36%). Twitter (24%) and LinkedIn (12%) follow behind those platforms.

Why it is a Trend

  • Influencer-based advertising has exhibited consistent growth recently and is anticipated to continue to do so over the coming years. It has grown from a $1.7 billion industry (2016) to being valued at $3 billion in 2017. In 2018, it was worth $4.6 billion and is projected to reach $6.5 billion in the future.
  • As per estimates from Business Insider, the influencer marketing industry is projected to attain a value of $15 billion by the year 2022, a notable increase from the $8 billion in 2019.
  • As per the 'Lower Spend' forecast by Media Mix, spending for influencer marketing will consistently rise and reach $5 billion by 2020 from a paltry $500 million back in 2015. According to their 'Higher Spend' forecast, it is likely to rise to $10 billion by 2020.

Companies at the Forefront

  • Fashion Nova is an example of a company that is at the forefront of this influencer marketing trend. It served as the top spender in influencer advertising with $5.5 million spent in Q2 of 2019.
  • The company is regarded as an "influencer marketing phenomenon" and has 3,000 Instagram influencers and has witnessed a 600% increase in the year 2017 by leveraging influencer advertising.


Research Strategy:

To find the advertising trends, we scoured through various media articles from Forbes, WSJ, Business Insider, Bloomberg, Live Mint, Medium, etc., as well as advertising blogs such as AdAge, Adweek, Marketing Daily, Advertising Age, Unbounce, Ad Land, among others. We also searched through research and survey reports from Nielsen, Deloitte, Statista, Mckinsey, IAB, etc. Using those sources, we selected two prominent trends that have been growing over the last few years and are likely to be fundamental trends in the future as well.

We chose the trends after corroborating them across multiple sources and establishing them with quantitative statistics.
To identify companies at the forefront of each trend, we selected those that either deploy or incorporate them as their primary advertising channel, have maximum ad spend on the trend, or have experienced great success by deploying them.
Sources
Sources

From Part 06
Quotes
  • "Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (inmillions): 2018 – $388.8 ; 2017 – $532.9 ; 2016 – $645.8 . Production costs for radio and television advertising are expensed when the commercials are initiallyaired. These production costs, primarily in the U.S., as well as other marketing-related expenses included in Selling, general & administrative expenses were (inmillions): 2018 – $88.0 ; 2017 – $100.2 ; 2016 – $88.8 ."
Quotes
  • "Doctor's Associates, the owner of Subway, spent 468 million U.S. dollars on advertising in the United States in 2018."
From Part 12
Quotes
  • "US consumer packaged goods (CPG) advertisers will increase their digital ad spending by 17.3% to $11.12 billion in 2019."
  • "Search ad spend will increase 27.6% in the CPG sector this year. CPGs are spending more on search as consumers increasingly shop for CPG products online."
  • "CPG advertisers will spend $7.54 billion on mobile ads in 2019, up 22.8% over the previous year."
  • "CPG must contend with industry consolidation, working with external parties (like retailers and vendors) when leveraging consumer data, and making sense of the rise of interactive shoppable ads."
Quotes
  • "Packaged-goods marketers now spend more on digital than all forms of traditional advertising combined, according to a new study by Cadent Consulting Group."
Quotes
  • "The consumer goods giant saw an ecommerce opportunity in Hong Kong and partnered with HKTVmall by using Facebook Collaborative Ads, increasing online sales by 3.7X without a regional ecommerce website of its own."
Quotes
  • "The consumer goods company wanted to increase online sales for its products on a partner’s ecommerce sites by running Facebook Collaborative Ads, resulting in a 3X lift in sales."
Quotes
  • "Focus on authenticity and brand values when it comes to your CPG advertising and marketing plan. More consumers are becoming more interested in brands that have a mission or dedication to quality that rivals the massive enterprises who have been manufacturing their consumer packaged goods for years. Consumers are getting smarter about where they are spending their money and how they are spending their money, and a good CPG marketing strategy should take that into consideration."
Quotes
  • "Also, ensuring your brand is transparent about its mission creates an opportunity for new dialogue with the customer."
  • "53% of consumers in the U.S. and UK have reduced the amount of disposable plastic they use in the last 12 months."
Quotes
  • "It’s no secret that in today’s crowded marketplace, a brand’s authenticity is more important than ever. “Millennials and Generation Z are very concerned about issues that, incidentally the Consumer Goods Forum focuses on – that is the future of the planet and the people on it,” says Freedman."
  • "The Honest Company made a name for itself by promoting natural, sustainable ingredients in its baby products. Seventh Generation emphasizes plant-based ingredients and recyclable packaging."
  • "Perky Jerky‘s founder, Brian Levin, advocates for disability awareness and donates a portion of sales revenue to Down Syndrome and Muscular Dystrophy research. “Many simply will not buy brands or shop in retailers that don’t in some way provide real leadership on issues like environmental sustainability, human rights, and health,” explains Freedman."
Quotes
  • "Positively Good Marketing is Campaign Monitor’s series at the intersection of marketing and social responsibility. Showcasing socially conscious companies whose missions center around bettering the world, PGM specifically studies how these companies’ digital marketing strategies—from email newsletters to Instagram posts—reflect and further their core values and initiatives."
  • "The Honest Company, founded by Jessica Alba in 2012, focuses on creating safe and responsible products for babies and the homes they live in. According to them, The Honest Company’s mission is “to empower people to live healthy, happy lives. We’re committed to creating effective, safe, delightful, accessible, responsible products.” "
Quotes
  • "In an ordinary week, Seventh Generation’s TV ads involve Maya Rudolph hawking its laundry detergent or recycled toilet paper (and singing about why trees shouldn’t die to wipe your butt). For the week of September 16, leading up to the Global Climate Strike on September 20—when millions of people may walk out of work and school to demand climate action—the company will donate its six-figure ad buy to the Youth Climate Movement instead."
Quotes
  • "The digital native company was founded by actress Jessica Alba in 2012. It attained unicorn status — when a privately held startup attains valuation of more than $1 billion — three years later."
Quotes
  • "Unilever has agreed to acquire Seventh Generation, a Vermont-based maker of “green” household products like laundry detergent and diapers. No financial terms are being disclosed, but a source familiar with the deal says that Unilever is paying between $600 million and $700 million in cash."