A new study by Millennial Media and comScore shows that mobile spending for consumer packaged goods went up 235% from 2011 to 2012. They studied a group of mobile users over a three month period and found that 29% of men and 41% of women used their phones to research consumer product details. For in store mobile usage, 40% of women and 47% of men used their phones to find deals or coupons. These consumers also used their phones to check availability, compare prices or consult with friends or family. The study found that beverage companies are the largest advertisers, with 43% of the mobile advertising spend followed by 28% for personal care, 14% for food, 10% for household products, and 5% for pet products.
Just how are CPG companies and retailers using mobile? I took a look at some major players which include retailers and manufacturers in the CPG space. I discovered that CVS, Coca-Cola, and P&G all have instituted noteworthy mobile advertising campaigns this year. Here’s a look at how these companies are starting to engage customers via Mobile:
CVS has developed a Mobile APP, and to promote it they are giving away 1 million smartphones. As of this writing, customers can get a free smartphone on their website at CVS.com/smartphone.
P & G used mobile video for a recent Tide campaign. Tide is the official laundry detergent of the NFL, so in this campaign they asked users to submit their favorite photos of their game-day gear. Using the knowledge they have about NFL fans – the fact that they constantly check scores and read team news, they had a hunch that asking fans to share content about their favorite team would create an enthusiastic response.
For their first all–digital campaign, Coca-Cola – with agency Wieden + Kennedy – is targeting teens using games and other digital content based on their marketing research.
These efforts have literally all just begun, so it will be interesting to see if their results will prove that the spending is justified – and how these mobile advertising campaigns will evolve as consumers access and interact with this new breed of digital content. Pio Schunker, svp of integrated marketing communications at Coca-Cola North America admits that Coca-Cola’s new campaign is experimental, but they are prepared for this challenge with a campaign that will be constantly in test mode. Interviewed in Adweek, he described their strategy: Coca- Cola will analyze the digital content two times a week and switch out mediocre performers to test new ones. Shunker says: “This is meant to be a constantly iterating campaign…We fully expect to end up in a completely different place compared to where we started.”