Kellogg's plans to boost digital adspend

27 April 2010

LONDON: Kellogg's, the cereal giant, is planning to double its digital advertising spend in Europe this year, with both mobile and the web set to benefit from the increase.

The company has recently named Matt Pritchard as its first European digital planning director, and is set to undertake a wide-ranging review of its current activity in this area.

This will include reassessing its current approach to working with its agencies, as the organisation seeks to realign its communications strategy for the long term.

"Historically we've spent 3–4% of our European marketing budget on digital," said Pritchard. "We're looking to drive that to 8–10% this year, and then to increase it even further in the following two-to-five years."

More specifically, Kellogg's will create the equivalent of a venture capital fund that will be used to back new technology produced by developers.

It is hoped this will provide original ways to connect with consumers, and ultimately help to prove the return on investment that can be generated via digital platforms.

"I believe that with new channels coming out, particularly with mobile, there are ways you can easily close the loop," said Pritchard.

"That could mean an interaction at a shelf edge that drives a download to a phone, which can then be scanned at a checkout. That's a clear example of where mobile can prove itself."

Earlier this year, Kellogg's ran a mobile voucher competition, offering customers buying a Rice Krispie Square bar the opportunity to win £2,500 ($3,862; €2,899) by sending in a promotional code via text message.

Entrants were then sent a barcode direct to their mobile handset, which could be scanned in-store, enabling them to claim another Rice Krispie Square bar for free.

The company also placed social media at the heart of the launch campaign for Krave, a cereal that was introduced in the UK in January, something Pritchard suggested demonstrated the potential of new media.

"There's a big opportunity to work with your customers to develop your brand online," he said.

Data sourced from New Media Age; additional content by Warc staff