When it comes to successful ad targeting for consumer packaged goods brands (CPG), there are a lot of theories, but little data.
Until recently, that is. In June, NCS released the results of a study on 50 CPG brands over 3-and-a-half-years at various stages of their life cycles called How to Build Brands. Recently, Reynolds Wrap, the venerable aluminum foil brand, took a deep dive into what this data means for the brand.
According to the study, advertising spend becomes more efficient when marketers can identify which consumer groups the messaging resonates with most. Ideally, marketers can double down on such targeting to improve return on ad spend (ROAS) and sales lift. For CPGs, efficient spending is imperative. The average food store in the U.S. is 7,500 square feet smaller than 10 years ago and has about 9,000 more products for sale. But 60% of shopping decisions are still made in store. Clearly, many shopping decisions are up for grabs.
By Leslie Wood, Chief Research Officer
If you Google “rules of advertising,” you’ll find that most of these golden rules focus on how to develop great creative. There isn’t a lot of data-driven direction for planning and delivering advertisements with the right messages to the right audiences. In the past, we didn’t have the tools and framework to understand the financial implications of messaging and targeting decisions. Today, we do.
Now, we can stop asking the following questions and start answering them.
- Does advertising really work or can I just cut the price?
- What are the best short- and long-term strategies for driving growth?
- Who should we target—current buyers or non-buyers?
- What are the roles of creative and media in driving brand growth?
- How should the life stage of my brand affect decisions?