CPG
CPG companies are learning: consumers love mobile for immediacy, fun and finding great deals
Our Two Cents:
Some decent best practices on how Consumer Packed Goods (CPG) brands can use mobile to make their offers more relevant and engaging. Marketers should remember that in the CPG category, price is often top of mind. Therefore, the functionality and content that brands deliver to their customers should reflect the “value hunting” behavior shoppers are exhibiting in this current economy.
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Google Mobile Ad Blog
Matt Dorfman, Account Executive, Mobile Ads
Friday, July 8, 2011 | 10:22 AM
Mobile is playing a central role in how customers interact with consumer packaged goods (CPG) brands. According to a recent smartphone study, 79% of users rely on smartphones to help with shopping – 69% for more product information, and another 70% while shopping in the store. (1)
The price-conscious shopper may want to redeem a mobile coupon to save $1 on a tube of toothpaste. Another may want to know the most eco-friendly brand of detergent as they shop in store. Or, the more competitive among us may use their mobile device to win a prize via a promotion for their favorite sports drink.
CPG companies typically rely mainly on brand advertising – often through TV campaigns – to connect with consumers. Mobile, provides new ways for consumers to experience CPG brands and connect with products and offers, yet many CPG marketers are not using mobile to reach consumers – and they are missing out.
Whether someone is looking for offers or trying to find your nearest location, many consumers are searching for you on mobile devices. Google’s research shows that 12% of mobile search queries are related to food and beverage items, and 15% of queries center around home and personal care. So how can CPG marketers mobilize their brands and make sure they stake their claim to the mobile marketing landscape?
Make consumers an offer
First, provide something useful or solve a problem that a customer has. Try couponing on mobile exclusively – and be sure you’re dovetailing with retailers to close the loop.
In December 2010, Adidas offered customers 15% off purchases made in an Adidas store of $75 or more. The mobile Offers Ads campaign doubled in-store coupon redemption and increased the average in-store order value.
Go local
Mobile users are searching for information locally. Now, you can use hyperlocal distance information with location extensions, an enhancement that lets your customers know how close they are to a business. In this case, the business would be a retailer you have partnered with that carries your products. This high-end mobile device feature provides users with down-to-the-block-level detail about a business including address, phone number and location on Google Maps for Mobile.
Just test it!
Run a few mobile-focused campaigns to experiment with mobile advertising. In Q4 2010, Mindshare, Kimberly-Clark’s interactive agency, implemented a comprehensive mobile ad test program honing in on specific brands, devices and keywords. The combination of CPC and click-through rate (CTR) for mobile was 70% better than the same stats on the desktop for the test brand.
Get creative
Think of an experience for consumers that is unique to mobile. To engage Android device users across US, Coca-Cola decided in 2010 to promote a lighthearted holiday live wallpaper app. Says Wendy Clark, Senior Vice President, Integrated Marketing for Coca-Cola, “If your plans don’t include mobile, then your plans are not finished.” (2)
We tend to agree. CPG brands need to have a strong mobile strategy, and Google mobile ads can help.
Global mobile research on the smartphone user and the mobile marketer from the MMA and Google
Natalie Rojowsky, Google Mobile Ads Research
Thursday, June 16, 2011 | 3:43 PM
Today, in collaboration with the Mobile Marketing Association, we shared the initial findings from an exciting global research initiative at the MMA Forum in New York City. The research, “Global Mobile Research: The Smartphone User & The Mobile Marketer”, was conducted by Ipsos GmbH and TNS Infratest and sought to better understand mobile usage trends and business’ readiness for mobile marketing strategies. The study was comprised of two surveys: an online survey of thousands of mobile consumers in 30 countries, and the other, a telephone survey of 1,000 marketing decision makers, 200 in five key markets. Today we presented a subset of the data which focused on five countries: US, UK, France, Germany and Japan. Here are just a few of the key findings.
We gained some new insights about global smartphone user behavior:
Smartphones are a frequently used gateway to the web:
- A significant number of smartphone users accessed the internet via their smartphone every day of the past seven days: US-58%, UK-55%, France-59%, Germany-45%, Japan-78%
- And many users go online via their smartphones multiple times a day: US-53%, UK-49%, France-47%, Germany-42%, Japan-68%
Smartphone users are engaging in a variety of activities on their phone:
- Smartphone users have looked for local information on their mobile devices: US-90%, UK-81%, France-83%, Germany-85%, Japan-90%
- And these local information seekers have taken action after looking up local content: US-87%, UK-80%, France-83%, Germany-79%, Japan-80%
The smartphone is playing a critical role in shopping:
- Across the board, consumers are using their smartphone while in a store: US-82%, UK-68%, France-82%, Germany-65%, Japan-75%
- Not only are smartphone users using their mobile phones while shopping, they are also making purchases on their mobile device: US-29%, UK-28%, France-17%, Germany-28%, Japan-45%
We also gained some directional visibility into the mobile activities of marketing decision makers:
- Only a fraction of businesses in the five countries report having mobile optimized sites: US-33%, UK-17%, France-12%, Germany-37%, Japan-43%
- Fewer than a third of businesses surveyed have an app: US-19%, UK-15%, France-18%, Germany-26%, Japan-10%
- Mobile commerce strategies of the businesses we spoke with primarily target upper funnel activities: 65% reported that their mobile strategy targets the research phase of the shopping process
While the mobile revolution is moving at different speeds across the globe, it is evident everywhere. This research underscored how consumers are using their mobile devices to access the web, look for local information, and purchase products and services. Businesses seem to be lagging behind the consumer in terms of use and support of mobile marketing which represents a significant opportunity.
The full presentation is available here. In the coming months we will be releasing additional data and insights from other countries surveyed as part of this project.
Posted by: Natalie Rojowsky, Google Mobile Ads Research
Why Behavioral Targeting is the Future of Mobile Marketing
While behavioral targeting is nothing new in the online world, it’s still something of a novelty for mobile. Mostly because we still lack the scale, tehcnology and inventory to do this effectively. However, the growing trend of using behavioral targeting techniques continues to gain traction across the entire spectrum of mobile, not just advertising. Simple demographic profiling, which is how media is traditionally purchased, seems flat and one dimensional when looking at mobile users. Take the retail sector for instance. In our experience, retailers don’t care so much that their target may be men 25-34, they care about why they walk into a store, scan a product with a barcode scanning app and then buy the product in the store itself. That type of behavioral understanding, which addresses the “why” vs. “who” approach to shoppers is the core of why behavioral targeting so effective.
Product extensions now available on mobile devices
Product Extension ads: Now shoppers can see images in mobile search results. Product Extension Ads are enabled by linking your Google Merchant Center account to your AdWords campaign.When your mobile search ad appears, and your Google Merchant Center account contains products that are relevant to the searcher’s query, Product Extensions show the product images, titles, and prices of your products in a plusbox under your ad.
Product Local ads: An enhancement to Product Extension Ads, Product Local Ads show the actual availability of products in local stores along with the product image and price all within the mobile ad.
Mobile Wallets are all about the data, not the transaction
While there was much excitement over the idea of being able to pay for things by simply touching a smartphone to a payment terminal, the real value of the mobile wallets is not about the transaction at all, at least not for Google. What the Mountain View mobile giant is really banking on is the vast amount of shopper data that will produced as a result. Essentially, Google knows that transactional data will generate a ton of shopper behavior, which can be leveraged and sold many ways. With this data being real-time, Google would be able to make the information available instantly to retailers, which would allow them to offer shoppers real-time incentives based on their purchasing behavior. And since the mobile wallet doesn’t just hold virtual cash, but also mobile loyalty cards and coupons, everything would instantly be available for the shoppers.
For people that don’t have a Google phone with NFC technology built in, they can add an NFC sticker that goes on the back of the phone, download the Google shopper app and they’re good to go.
How Ethnicity Affects Behavioral Differences in Consumers
Everyone behaves differently when it comes to media usage and buying behavior. As the all sectors (not just retail) move towards personalized shopper experiences, it’s importnat to understand the differences in behavior at an ethnic level. Nielsen reveals how consumers use the same resources differently. The findings show that African Americans watch the most TV, Hispanics are savvy smartphone users, and Asians are online centric. When it comes to retail, African Americans shop most frequently; Hispanics shop less often but spend more than others; and Asians take the most advantage of deals and promotions. Read More
Smartphone user study shows mobile movement under way
Source: Dai Pham, Google Mobile Ads Blog, Tuesday, April 26, 2011
71% of smartphone users search because of an ad they’ve seen either online or offline; 82% of smartphone users notice mobile ads, 74% of smartphone shoppers make a purchase as a result of using their smartphones to help with shopping, and 88% of those who look for local information on their smartphones take action within a day.
- 81% browse the Internet, 77% search, 68% use an app, and 48% watch videos on their smartphone
- 72% use their smartphones while consuming other media, with a third while watching TV
- 93% of smartphone owners use their smartphones while at home
- Search engine websites are the most visited websites with 77% of smartphone users citing this, followed by social networking, retail and video sharing websites
- Nine out of ten smartphone searches results in an action (purchasing, visiting a business, etc.)
- 24% recommended a brand or product to others as a result of a smartphone search
- 95% of smartphone users have looked for local information
- 88% of these users take action within a day, indicating these are immediate information needs
- 77% have contacted a business, with 61% calling and 59% visiting the local business
- 79% of smartphone consumers use their phones to help with shopping, from comparing prices, finding more product info to locating a retailer
- 74% of smartphone shoppers make a purchase, whether online, in-store, or on their phones
- 70% use their smartphones while in the store, reflecting varied purchase paths that often begin online or on their phones and brings consumers to the store
- 71% search on their phones because of an ad exposure, whether from traditional media (68%) to online ads (18%) to mobile ads (27%)
- 82% notice mobile ads, especially mobile display ads and a third notice mobile search ads
- Half of those who see a mobile ad take action, with 35% visiting a website and 49% making a purchase
Smartphones Are Local Search and Shopping Devices
Source: Ryan Kim, GigOm Apr. 26, 2011
There’s a reason why search companies, advertisers, payment processors and local merchants are so interested in smartphones. It’s because they’re turning out to be powerful and popular tools for people looking to search locally, act quickly and improve their shopping experience. That’s the conclusion of a new smartphone user study commissioned by Google .
Google obviously has a big stake in these results, which were culled by research firm Ipsos OTX from 5,013 U.S. smartphone users at the end of 2010. But the numbers underscore why Google, Facebook, and Groupon — as well as a host of marketers, app makers and merchants — are so hot for smartphones. It’s because they really do fit certain use cases that unlock money-making opportunities.
The survey found 95 percent of smartphone users have looked for local information, with 88 percent of these users acting on information within one day, most often contacting or visiting a business.
This is consistent with other survey results, and it really brings home how intent-driven users are when they search on a phone. They are often looking for something specific, and they’re ready to move quickly. That’s a huge opportunity for merchants and brands to get in front of users who are on the cusp of making a purchase decision. As we’ve noted earlier, Google is already seeing great results with its click-to-call feature in local search ads, which leverages this behavior.
The key point? Smartphone users are ready to take actions: Nine out of 10 smartphone searches end in an action. And search engines are the most commonly visited websites at 77 percent, ahead of social networking, retail and video sharing.
Smartphones are playing a growing role for shoppers, who are wielding them to find deals, pull up research and locate businesses. The survey found 79 percent of respondents used their smartphones for shopping, and three out of four smartphone users made purchases either in store or online using their phones. Seven out of 10 smartphone users turn to their phones while shopping in a store, showing the phone is often in use from the time research begins until the moment a purchase is made.
The survey also found smartphone users spent a median of $300 on purchases in the past year through their smartphone. This is consistent with other news we’ve heard. For example, eBay said global mobile sales hit $2 billion last year, while Scanbuy reported mobile barcode scanning activity was up 16x in 2010 over 2009. This also points to the growing importance of mobile payments, which will be a big battleground for players like Square, PayPal and others.
For advertisers, the smartphone is providing a new chance to reach users who are often ignoring online ads. Seventy-one percent of users conducted a search based on an ad exposure, and 82 percent notice mobile ads, with half taking some kind of action, most often making a purchase (49 percent) or visiting a website (35 percent). This is consistent with what I’ve been hearing from mobile ad executives, who say mobile ads are a new opportunity because they’re more effective and memorable, particularly more rich mobile ads.
Overall, the survey highlighted how wedded people are to their smartphones. Ninety-three percent of people use smartphones at home, with 39 percent admitting to using their smartphones in the bathroom. The study found 72 percent of users used a smartphone while consuming other media, including a third who watched TV.
That’s what makes the smartphone so potent. It’s with people at all times, and it’s a versatile tool in the hands of consumers, who are only going to use them more and more. The implications for retailers, merchants and advertisers is huge. They need to optimize sites for mobile, make themselves visible to mobile phone users, consider launching mobile apps, and figure out how to engage this mobile audience, because they’re much more informed and active than previous shoppers. For many merchants, it increasingly makes sense to formulate multi-channel strategies that cover mobile, social and in-store campaigns. The smartphone is changing everything, and businesses need to catch up if they want to take advantage of all this upheaval.
