"The media landscape has changed a lot but the objectives for FMCG companies remain the same," said Jon Mew, head of mobile at the IAB, opening this year’s IAB FMCG Forum.
This was a key theme for many of the speakers throughout the day as they sought to explain how FMCG marketers could make the most out of advances in digital technology to promote their products.
Striking figures
First up, Laurie Kirschner, category director, FMCG at Yahoo! Network outlined findings from Nielsen Media Research which showed that while FMCG enjoyed a 24% share of total ad spend, it accounted for just 4% of total online ad spend. The same research also showed that on average, only 1% of FMCG ad budgets went online. By comparison, FMCG brands spent 63% of total above the line budgets in 2008 on TV. “These are striking figures,” argued Kirschner.
Picking up on this point, Philip Buxton, head of marketing at iCrossing, argued that if FMCG marketers are not spending money online “it’s digital’s fault”. One option for brands offered by Buxton was utilizing social media. Putting the case, Buxton argued that there were three major reasons to get involved in social media:
- it’s what your customers are doing
- it’s how they decide what to buy and who from
- they’re louder than you
The web’s greatest gift to marketers
Buxton went on to argue that “social media are the web’s greatest gift to marketers”, suggesting that they can help you to find out what your customers say to each other about you and your competitors. Once that knowledge has been gained, marketers can then use it to develop better products and services and to develop better, more relevant brand communications.
To conclude, Buxton outlined his four top tips to using social media effectively:
- Listen - use social media to listen to what your customers are talking about and what they are saying about you and your competitors.
- Enable - customers will thank you for 'enabling' them to socialise - through applications, forums, tools on your own site or a third-party site. 'Be useful' in this way.
- Inspire - your customers will talk about you if you inspire them to do so. Do things that spark conversation...even great TV ads.
- Engage – Always balance your desire to join conversations with their desire for privacy.
The revolution is over
Next up, Chris Clarke, chief creative officer at LBi, argued that brands should no longer be talking about a digital revolution. “The revolution is over,” said Clarke. “We’re already living in a digital world”.
As a result, argued Clarke, brands must adapt to the changing landscape. “It’s no coincidence that in the digital age Stella’s ‘Reassuringly Expensive’ strapline doesn’t wash any more,” argued Clarke who went on to praise the brand for its subsequent re-positioning in the light of the colloquial adoption of the nick name “wife beater”.
Highlighting some good examples of brands that were born and brought up in a digital age, Clarke argued that Innocent Drinks has “an almost campaigning quality” about it which “travels incredibly well online”.
Web women with kids (WWW.Kids)
Next up, Katherine Eills, category development manager at Microsoft Advertising and Julie Forey, head of research & insight at Microsoft Advertising outlined the latest Microsoft research into how women with children use the web.
The research into this vital segment for FMCG brands identified the web’s four key uses for mothers. These were:
- Keeping in touch – the main driver for new mums using the web.
- Family organization – shopping emerged as a key online activity for online mums with 78 per cent of respondents stating that they had shopped online.
- Personal fulfillment – the internet was found to offer new mums ‘me-time’ and the chance for a ‘mood lift’ during their otherwise busy days.
- Entertainment – convenience emerged as the key here, with mums arguing that a variety of entertainment could be accessed quickly and easily online.
Big trends driving uptake
Next, Jon Mew, head of mobile at the IAB, argued that brands should be willing to exploit recent developments in the mobile marketing space.
“There are big trends driving uptake,” argued Mew. Chief amongst these are the improvements to handsets and the advancements being made in mobile content. Another key driver for Mew is an improvement in mobile pricing structures which has resulted in a 109% growth in customers on unlimited data plans in 2008.
Following on from this, Catherine Weight, business director of Mindshare illustrated how FMCG brands can use mobile to target consumers by outlining five learnings for effective mobile advertising:
- Use mobile to raise awareness
- Mobile advertising can work across all demographics especially 18-34s
- Brands and mobile internet sites should put the user experience first
- Mobile display advertising needs a clear focus
- Mobile is more effective when something of value offered
Don’t try and be cool
Closing the forum, Jonathan Attwood, chief executive of swapitshop, outlined some key points for FMCG brands seeking to engage young FMCG consumers. Rather than trying to be cool, Attwood offered ten points to bear in mind when marketing to children:
- Offer shared moments and belonging
- Provide peer group competition
- Offer a reward
- Give a compelling reason
- Novelty
- Delivery
- Communications should be on their terms
- Evolution and continuity is key
- Multiple experiences
- Communication and customization are vital
Still a way to go
Discussing the forum, Jon Mew, head of mobile at the IAB said: “Today’s seminar was a great success. It brought together some of the leading people in FMCG and in digital, sharing learnings and practical tips on how to improve their marketing across online and mobile.
"There were some great examples shown today of how FMCG brands have embraced digital but there is still a way to go. This is something we’re continually addressing here at the IAB.”
