Packaged goods to spend more online

Digital spending is expected to see a boost in the advertising budgets of packaged goods players in 2010, with the trend already showing a marked prominence in the global market. This too, although measured spending may not be a reflection of this continuum.

Resultantly, two international digital agencies, Bingo World and Resource Interactive, have seen a 40% headgrowth in the number of employees in 2009. Both these firms service P&G and other package-good establishments.

Although new business- wins account for much of their growth, digital-platforms have ensured a strong tide in business amidst an existing clientele of package goods players, with contracts running upto three- years duration, unusual in this scenario, and crossing wide channels of entrepreneurship.

Internationally Unilever is all poised for its first digital roster as soon as possibly end-December with Reckitt Benister close in the heels of announcing its next major one.

Nonetheless, measured media metrics have shown the rise for online packaged goods to have fallen by 5.3% in the last year although Resource claims that most of its digital work- social media and digital projects, together with point-of-purchase and mobile advertising -are not reflected in measured media spending.

Totalbeauty.com is a sign that digital media works- and works well- with the footfalls to it's site growing 5- 6 times in the past few months to an estimated 5 million. After a sluggish first quarter, Totalbeauty.com has sold off its inventory for the past four months this quarter, and is entering a JV- with all financial credibility- with an online male-oriented media player to launch a male grooming and lifestyle site.

E-commerce is also a tool wherein CPG clients can in incrementally enhance revenue by themselves as resource has demonstrated through functional exercises with Tractor Supply, Victoria's Secrets and formerly Walmart..

For Bridge, whose clientele extends to P&G, ConAgro, Abbott Labs, Similac and Red Bull ' business has extended by 40% and they claim the CPG advertising is fast growing, but in different directions as demonstrated by a new business- relations program from Similac and the proliferation of more engaging brand websites.

As proven by a Forrester report, consumers are in inclined towards social media and digital platforms- but there is no measure for singular preference of a type of media- compelling CPG brands to diversify and do different things to hold attention and thereby bend expenses from traditional-media-to creative to digital.