Dramatic changes have taken place in spending allocation within the consumer packaged goods (CPG) markets, but the retailer and shopper impact is lagging, according to the 2017 Marketing Spending Industry Study, “Blinded by the Light,” released by Cadent Consulting Group, Wilton, Conn.
Key takeaways from the study include:
- Marketing spending represents a tremendous investment – nearly $225 billion annually in consumer packaged goods.
- Digital spending has almost tripled over the past five years, while shopper marketing has more than doubled. Digital spending is now greater than traditional advertising.
- Despite the increase in shopper marketing and digital spending, neither retailers nor shoppers are feeling the impact. Digital received the lowest effectiveness rating from retailers, as well as the lowest awareness and impact scores from shoppers.
- Significant money is being redirected with an incomplete understanding of marketing ROI.
“Most manufacturers are chasing after the bright, shiny new objects, but not thinking about their marketing ROI,” says Don Stuart, managing director.
“In a time of diminished expectations and relatively static growth, manufacturers need to challenge themselves, not only on strategic spending but [also on] optimal marketing ROIs on all investments,” says Karen Strauss, principal.