Dynamic Ad Tech Drives ROI for CPG Advertisers

Pepsi. Tide. Crest. PetArmor. Del Monte. Pantene. Oscar Mayer. What do all these brands have in common? They’re all major Consumer Packaged Goods (CPG) brands. Oh, and one more thing: they each spend big money on advertising.

For reference, CPGs are defined as items that are frequently bought, used up and replaced. Because there’s an ongoing need for CPGs, these brands are constantly advertising and competing to get their product seen, used and remembered to build brand loyalty. To sum it up, CPG companies have two disparate objectives when it comes to marketing: Drive brand awareness and preference, and drive immediate sales for their retail partners. These objectives are referred to a number of ways: brand marketing, customer or “shopper” marketing or more simply, “equity” and “offer” marketing.

The brand message speaks to the positive attributes of the product – i.e. Tide gets clothes clean—which drives equity for the brand.  The “shopper” marketing message tends to focus on price and availability information, aka the offer —Tide is available at Walmart for $5.49—which encourages consumers to buy in the near term and at a specific retailer.

Historically, TV has been the medium of choice for brand messaging, while circulars in the Sunday paper were the primary vehicle for shopper marketing.  The printed circular allowed CPGs to do what TV would not: communicate price and item information that was specific to a retail partner that sometimes varies by geographical region.

With the advent of dynamic ad technology, it has become possible to achieve both objectives within a single campaign through online channels. These ad units can incorporate video and graphics to communicate the brand message while simultaneously personalizing and localizing the price and item content of the message to the individual being served the ad. This dynamic technology eliminates any hard-coding and is instead generating information on the fly. Typically, the initial layer of the ad loads in the user’s browser, and then based on what can be determined about the consumer’s preferences, location, etc., it loads the “offer” messaging.  National ad campaigns with store-level, hyper-localized product information—the best of both worlds.

Most importantly, combining equity messaging with dynamically generated offer content has proven to be highly effective.  Using a variety of post-campaign sales lift studies, Liquidus’ dynamic advertising has produced an ROI that is anywhere from 3x to 8x the media investment for CPG clients including SC Johnson, Perrigo, and Novartis. Talk about a no-brainer!