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CPG Marketers – Go Mobile

Posted on October 10, 2012
By Shamala DN

It is no surprise that mobiles are changing the way consumers search, shop and interact with one another. Mobile media, the mobile web, apps and text messaging are transforming the shopping experience and the way consumers interact with brands. This has casted range of opportunities for CPG companies to leverage mobile to grow their brands. This mobile revolution and the shift in consumer behavior is simply too large for CPG marketers to ignore. Here are few things for CPG companies to differentiate their brand, strengthen customer relationships, loyalty and drive revenue.

  • Optimized Mobile Website There are high chances that the consumer is going to search brand name before they look at mobile app store. Consumers use the mobile websites of CPG companies to plan their shopping trips (e.g. find store hours and nearest location) and enhance their CPG experience (e.g. check prices and product details).Having mobile optimized website which loads quicker, simple and easy to navigate will be crucial to establish awareness. CPG companies can display their products and running offers up front with fully optimized mobile ad campaigns to improve user engagement.
  • Having Branded Mobile App Having branded app which is informative, educational or gaming is key part of any mobile strategy. Apart from the standard information, the app must also provide an added value and unique experience centered on the products. CPG marketers can leverage on mobile apps to boost brand awareness and affinity by thoroughly understanding their target audience. The best way to use apps is to create something that is both useful and valuable.
  • Creative/Rich MediAds - Mobile ads allow for level of engagement not possible in TV, radio, print, or even online, and enable brands to expand their customer relationships. With the right ad execution, particularly in HTML5 rich media, brands can create unique and participatory experience for the consumer. Properly targeted rich medibanner and search ad creative leaves lasting impression with consumers.
  • Location Based Services Location aware promotions are very useful for CPG companies as it helps shoppers on the move. Consumers value products and solutions far more when they are delivered at the right time, in the right place and in relevant context. When consumers are near retail partners, CPG companies can use location-aware advertising to promote special deals to drive consumers in store. They can also push location based customized offers and coupons to increase retail sales and enhance user engagement.
  • QR Codes For CPG firms, QR code technology means the ability to interact with consumers without having spokesperson, and for consumers to find more information or deals vithe brand without being bombarded by advertising. Marketers should focus on creating useful QR code campaigns that deliver timely information, particularly when that information can be accessed at the moment of the purchase decision when consumers are in stores and seeking that little something extr(such as additional information, review, comparison pricing, or discount) that can tip them in the direction to pull out their wallets and buy.
  • Mobile Coupons Mobile coupons offer an excellent opportunity for marketers to appeal to users on the go and to drive them to take an action. Marketers can capture the identity, location and amount of the customer making the purchase by using various coupon redemption methods such as SMS codes, app based redemption and mobile bar coded coupons. Embedding QR codes with mobile coupons can drive both in-store and online sales, as consumers are 10 times more likely to redeem mobile coupons as they are traditional ones according to Borrell Associates. Mobile coupons delivered through QR code can even be configured for timed expiration from the time they are unlocked to drive immediate or delayed response. Bath and Body Works, Sephora, JCPenney, Kohl's, and Olive Garden are few CPG companies who are already offering mobile coupons.
  • In- Game Mobile Marketing - User engagement is critical to driving brand loyalty. Mobile gaming offers different perspective on how CPG companies can engage their consumers. Brands need to understand how they fit into their consumers lifestyle and build games around that. By building games that reward consumers for achieving goals or fun to play will increase user engagement and brand awareness.
  • Better Targeting Targeted and relevant messages will increase the response rate of any CPG mobile campaign. CPG companies can target through combination parameters including location, handset, wireless carrier, age, gender and time of day.

Next Big Question: How Much to Invest?

Now, there are so many ways the companies can attract consumers on the mobile ecosystem, the next big question would be how much should CPG marketer need to allocate its medibudget. Traditionally CPG companies have been spending mostly on TV and print advertising. With the shifting of market dynamics, there is need for these companies to innovate and create marketing strategy to engage the customer in the mobile world. Procter & Gamble and Unilever have publicly announced they are shifting more resources to digital formats to keep overall spending in check. Procter & Gamble chairman, president and CEO McDonald has informed analysts in February 2012 that P&G would trim $1 billion in external marketing costs over the next five years, in large part by shifting from TV to digital and mobile ads and using more multi brand group marketing tactics to œbuild one-on-one personal relationships with every consumer. As per Marketing Evolution study:

1) 7% of marketers medibudget should be allocated to mobile advertising to optimize advertising goals;

2) By under-investing in mobile, marketers and thus businesses arelosing out on profits; and

3) Over the next 4 years, marketers should invest at least 10% of their budget to mobile advertising For categories like CPG 5% of medibudget generally be invested on mobile. Campaigns aimed at building awareness would also have smaller allocation for mobile (5%), while those geared toward boosting purchase intent and consideration would increase the share to 8%

So What Next?

CPG companies need to create mobile strategy considering the big picture on how they would want to engage the consumers through the mobile channel and utilize the power of mobile marketing combined with traditional marketing to create and maintain loyal and engaged customer base. Thinking of having strong mobile strategy for your brands in order to truly unleash its potential? InMobi can help you win in todays challenging world by crafting winning solution.Check out our gallery of award-winning ads, our exclusive industry research reports or contact us today to learn more.



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