What is CPG?
CPG, or consumer packaged goods, are relatively inexpensive products that are frequently used and easily replaced. Most household items fall into the category of CPG, and some examples include shaving cream, soda, cleaning products and most consumables.
Many of the commercials you might see during the super bowl are about packaged goods marketing, and all of the pizza, beer, detergent and air freshener ads are strategically placed by a CPG marketing agency.
Why is Social Media Important for Your CPG Business?
The internet is an excellent frontier for packaged goods marketing. Take for example some CPG companies, such as Amazon’s Prime Pantry, existing entirely in the digital space. Just like on television and in brick and mortar stores, it’s also important to advertise to the billions of people that are purchasing items on the web daily. Here are some reasons why utilizing social media is crucial to the success of your CPG company.
Social media can be a direct pipeline for consumers to a company. Queries can be answered within a matter of seconds. According to sproutsocial.com, customers like to get responses from companies in four hours or less. It’s important to utilize this two-way communication opportunity because 1 in 4 people are annoyed when you don’t respond to them on social media. Twitter can serve as a platform for your FAQs while Instagram can be your gallery to showcase your product and packaging. Social platforms with video sharing capabilities allow you and your customers to create content that shows the uses and value of your brand. Product demonstrations can be done digitally, and the user can receive information about your brand from the comfort of their couch. People from all around the world can showcase how your product can be useful across various cultures, classes and situations. Videos, photos and positive promotion of your product can be liked and shared for all to see. Reading reviews is good, but seeing real people vouch for the product can be an integral selling point for potential consumers. Sproutsocial.com also found that 57% of people are more likely to buy from a brand that they follow on social and that 75% of people have purchased something because they saw it on social media.
2. Overlap and Frequency
Exposure creates trust and familiarity. In order to build that bond, a customer must see your ads and CPGs multiple times. This is easy to do on social media because of the frequency in which people use it. A study conducted by the Pew Research center found that 55% of Facebook users visit the site multiple times a day while 23% of Twitter users and 35% Instagram users login more than once a day. While they were logged in, social media users sought information and interaction from news sources and brands. This combined with the fact that most people have to see a product or service 2-4 times on social before they purchase it, and nearly 20% of people need to see a social post or advertisement 5-8 times, means social media is a channel that is necessary for CPG.
3. Direct to consumer
Websites like Amazon, eBay, and Alibaba have effectively taken advantage of the large web audience. For many people, the internet has become akin to a market square or mall. In 2017, consumers spent $453.46 billion through e-commerce. Roughly half (51%) of Americans report making online purchases using their cellphones, while 15% have purchased something by following a link on social media sites such as Facebook or Twitter, according to pewresearch.org. Consumers still go to brick and mortar locations, but not without their cellphones. The same site also reported that 65% of online shoppers indicate that if they needed to make a purchase, they would probably compare the price they could get online with the price they could get from physical stores and choose whichever one offered them the best deal. The best strategy for this trend is to be with the customer during such a crucial moment. Social media is a direct way for your CPG advertising to reach them whether they’re in the store or at home.
People tend to buy from companies they trust. How can a company build this trust? By forming relationships with your consumer through social media interactions. Viewing your Facebook profile or Twitter feed shows consumers who you are, what you like and your values. These can all be used to leverage likability if a customer can relate to you. GlobalWebIndex.com reports that the average person has 7.6 social media accounts and that 98% of people have at least one. Advertising on multiple platforms not only gives you a higher chance of being seen by your specific target audience, but it’s also where most people are. This means that you can influence your customer before they get into the store which creates familiarity with your CPG. The same social media advertisement can lead the consumer back to your website to purchase the product.
To recap, the 4 keys to boosting your CPG brand on social media are:
- Interacting with your audience
- Advertising on multiple channels in order to take advantage of the user overlap
- Reaching consumers directly
- Showcasing your personality in order to build trust
The methodology is simple, but putting these steps into practice can be a daunting task. Making a campaign and managing an influx of messages and interactions is paramount to your success. Luckily there are CPG marketing agencies that specialize in building audiences, media placement strategy and creating a consistent social media persona to promote the benefits and values of your product in a compelling way.
Now all you need is an agency with social media expertise to craft your CPG advertising campaign. Appleton Creative is an award-winning, full-service online marketing agency located in Orlando, Florida. Appleton works with local, national and international clients to deliver custom content, persuasive online ads and expertly crafted campaigns. By implementing valuable and shareable digital content strategies, Appleton can create the perfect social and online marketing experience for your brand and audience. Your Internet advertising goals are worth a conversation: contact us at 407-246-0092 or firstname.lastname@example.org.