Zenith expects FMCG food and beverage brands to increase their digital media ad spend by around 7% annually through 2023, according to its Business Intelligence – FMCG Food and Drink report, released today. This figure is well above the 4% annual growth forecast for the FMCG category as a whole in the 12 markets included in this report *.Consumer product brands continue to rely heavily on traditional television, spending 39% of their budgets in 2020, compared to 24% on the average. Excluding China, where FMCG brands have already embraced digital advertising as their primary form of business communication, they spent 52% of their budgets on television, compared to 26% on average. Its main objective is to maximize the notoriety and reach of the brand, so that it is kept in mind by the largest possible number of consumers at the point of sale.

This is something in which television has historically excelled but its diminishing reach – especially Croatian Email List among young people – is making it less effective.For this reason, consumer product brands are following their audiences on digital media. Zenith expects FMCGs’ digital advertising investment to grow from $ 12.3 billion in 2020 to $ 14.9 billion in 2023, and its market share to grow from 46% to 49%. After the pandemic boosted FMCG ecommerce in 2020 like never before, brands are looking to support and expand their capabilities in that area, channeling consumers into DTC operations or retail partnerships. However, the big challenge will be to use digital media to replace television effectively – creating brand awareness on a large scale and managing frequency. The rise of low video subscriptions Demand (SVOD), which alienates large audiences from direct mail, will make this task even more difficult, as will the end of third-party cookies.”FMCG brands need a new comprehensive approach to scope-based planning,” says Ben Lukawski, Zenith’s Global Chief Strategy Officer.

“That means combining television, paid online video advertising, virtual sites on SVOD platforms, and perhaps even gaming presence, using first-party and second-party data to avoid duplication and optimize incremental reach.”OOH is the exception to the decline in reach of traditional media. As traffic normalizes after the COVID-19 crash, the spread of digital displays will make it even more effective to reach consumers, with targeted and relevant ads close to the point of sale. FMCG OOH advertising is projected to grow 9% annually from 2020 to 2023, while its market share will increase from 6.1% to 7%, slightly above its pre-pandemic share of 6.8%, in 2019 .E l advertising investment of FMCG growth will total market while recovering from the fall of 11% in 2020.Ad spend for FMCG brands fell more sharply than the ad market as a whole in 2020, down 10.7% to $ 26.7 billion.

This was not due to a decrease in demand. On the contrary, the demand is it shot up when people stopped eating in restaurants, cafes and bars and moved consumption into the home. Instead, FMCG companies were challenged to increase production, while supply chains were disrupted, and to use the limited distribution available to get their products to store shelves or consumers’ homes. As a result, many FMCG companies cut back on promotional activity for products that they couldn’t get to consumers fast enough.as to meet the demand, and invested in distribution infrastructure, especially in ecommerce operations and associations.

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