Last month the digital marketing agency Mediative released a white paper detailing their success with a Mondelez brand microsite that they designed for Walmart.com. The results were promising for the future of CPG brands online. Using display advertising, Mediative drove “highly interested” online grocery shoppers to the microsite which can be seen here. The microsite’s goal was to create an interactive and visually appealing online destination where customers could get recipes and have a bit of fun – all in order to “engage, educate and inspire” customers and build awareness about the Mondelez brand.
Mediative reports that the top performing search banner showed a click-through-rate of 5.64%, compared with the much lower average Walmart.ca site click though rates of .11%. Additionally, once customers reached the microsite, they spent 450% more time on each page than average.
Mediative’s statistics show that online advertising such as this Walmart.ca microsite can increase brand affinity by up to 60%. Mediative’s goal was to create “a meaningful connection between the customer and Mondelez’s products” to “keep Mondelez top-of-mind with consumers when shopping for snacks at Walmart.”
Keeping your brand at top of mind, whether you are selling at Walmart, Amazon or several other of the top ecommerce sites, is of the utmost importance on the competive new “online shelf”. “E-commerce seems to be democratizing ‘shelf space’ as top brands do not dominate the e-commerce channel as much as they dominate brick-and-mortar retail,” says a September 2013 report from Sanford C. Bernstein.
This fall Kantar Retail released a digital industry benchmarking study which found that retailers and manufacturers have a long way to go in the digital space. The study ranked companies in three tiers: the top having made significant investments in digital which they called “performing”; the second “progressing” and those only just emerging from a brick-and-mortar approach “participating”. P&G and Unilever were some of the manufacturers rated as “top tier” or “performing”; but many companies were simply not evolving. One retailer respondent said of their experience with manufacturers that: “No one is doing a good job of building their brands via digital. They are using digital as just another form of advertising.”
The mantra is that “the shopper has gone digital and the industry must follow” – so why the dragging feet on the part of so many consumer packaged goods manufacturers? A recent Consumer Goods Technology article called “Optimizing Brand Value” gives some good insight as to why. Much of the issue lies in the complexity of CPG data. Executives from Hub Designs and Stibo Systems related the difficulties that CPG manufacturers are having entering the online space in the Consumer Goods Technology article.
The article states: “Consumers today have many new avenues available for finding products; however the information they seek is often on websites that the CPG company doesn’t even control. As a result, these sites often provide inaccurate information copied or scraped from yet another website or third party app.”
They go on to explain that a combination of staff issues with fragmented business units and information systems that are siloed cause major challenges for brand and product information. Issues such as out-of-stocks; missing or inaccurate ingredients or poor translations of product information, they say, can add up to potentially damaging customers’ experiences with the brand – driving consumers to the competition. “Poor data quality is not just an internal issue anymore; inaccurate data may have damaging consequences for everyone in the value chain and it can lead to bad press and negatively affect your customers’ perception of your brand.”