New Technologies Drive CPG Media Mix Optimization
As business line and marketing executives face increased scrutiny and are asked to do more with less, it has become ever more important to have a clear understanding of how marketing dollars are working for brands. The role of marketing has not changed much over the years, and it still plays a critical function in educating consumers, building brand equity, and generating sales.
What has changed is the variety of channels, their influence on consumers, and the metrics that are used to measure them. Twenty years ago, a major marketer primarily would use television, print, radio, and out-of-home media to communicate marketing messages. Over the last few years, however, as consumers have changed their media-consumption behavior (mainly in response to the benefits of technological innovation), marketers have begun to utilize such online media channels as display, rich media, search, mobile, and social media. In fact, the amount of time that consumers spend online has more than doubled since 2004, whereas their time commitments to other media have stayed the same or declined (See Figure 1). Consumers 34 years of age and younger reportedly are now spending more time with digital media than with television and print.