CPG brands can overcome mounting hurdles with outdoor advertising


In the wake of the COVID-19 pandemic, the consumer packaged goods (CPG) industry is navigating a fundamentally different retail landscape alongside the deep-rooted challenges it has faced for years. On the shelves of small retail stores, grocery chains, and big box stores like Walmart, brands have always been immersed in a crowded marketplace. With the pandemic and the increase in online shopping and delivery, this has become even more difficult to overcome.

Historically, GPCs have turned to broadcast or print advertising to capture audiences and build brand awareness. But these brands recognize that this is where outdoor advertising (OOH) shines. Here’s a breakdown of the common challenges CPG brands face and how OOH can help them overcome them:

Challenge n ° 1: Ensure broad national coverage to strengthen brand awareness

Awareness is essential for any brand. This is especially true for GICs. To build trust, relationships and gain loyal customers for life, GPCs need to build brand awareness, and not just in the larger markets.

Consumers live in all corners of the United States, which means brands need to be present wherever potential customers are. Brands need to think nationally, regionally and locally when it comes to grabbing the attention of consumers. However, being all over is a monumental – and often insurmountable – challenge for media buyers. While some media buyers may be masters of advertising in large markets, very few are equally adept at exploring small and medium-sized markets. Even so, it takes a lot of time and manual labor to execute national media buys which must incorporate a patchwork of regional and local media partners. But that doesn’t have to be the case.

OOH media buying platforms can help brands find and navigate the vast terrain of OOH inventory nationwide – and even streamline the execution of those purchases. With the right OOH buying platform partner, advertisers essentially have access to the country’s entire outdoor ad catalog, which is owned by thousands of different media providers. Advertisers can now digitally search all types of OOH inventory (including static and digital billboards, wall designs, street furniture, transit advertisements, etc.) and plan, execute and measure complex ad purchases in one convenient place.

Generating awareness ultimately comes down to a brand’s ability to gain reach and frequency of messages. With OOH ads and an OOH media buying platform, CPG brands can effectively get the broad coverage they need to build brand awareness, minus the heavyweight.

Challenge 2: Access the right data to target campaigns and analyze campaign performance

When tracking their OOH campaigns, most CPG brands have limited themselves to analyzing location-based mobile data describing footfall – or foot traffic – to business partner locations. While these types of data play a critical role in understanding how many people are exposed to particular advertisements, they do not provide concrete numbers on consumers who follow and buy products after seeing advertisements. Now brands can leverage purchasing data for both targeting and measurement. Put simply, it is a game-changer for CPG brands.

So what makes purchasing data so valuable for GICs? The average grocery store has over 28,000 items. Just because a consumer has visited a store where a product is sold does not mean that they have likely purchased that specific product. Purchase-based data sheds light on the specific products that buyers actually buy, giving marketers valuable insight into targeting and measurement.

In terms of targeting, purchase-based data helps brands minimize campaign waste by reaching their precise target audience every time – the people who buy their products or those of their competitors. When it comes to measurement, purchase-based data differentiates between customers who were simply browsing from those who actually made a purchase, so that brands can optimize their campaigns using meaningful metrics, analyze campaign performance, and transfer dollars to their top performing locations.

Challenge n ° 3: Build brand loyalty to stand out from its competitors

GPCs require brand loyalty to survive in a competitive market, and social media plays a major role in establishing brand loyalty. According to The Social Habit, 53% of Americans over 12 who follow businesses on social media are more loyal to those brands – and that number jumps to 66% for younger consumers, ages 18 to 24. That’s why many CPG brands invest in social media to build and foster direct relationships with their clients. OOH can help amplify these social media efforts to a greater degree than any other offline media channel. According to Nielsen, OOH locked activations by a factor of four for every advertising dollar spent compared to all other advertising mediums.

In her findings, Nielsen reported that about 38% of American adults visited a Facebook page and 25% an Instagram account, after viewing an OOH ad – demonstrating that OOH ads help bridge the gap between the real world and digital. This rings especially true for younger and more digitally inclined consumers. Facebook even revealed that the combination of social and OOH ads is more likely to reach a younger audience than when the platform’s ads are paired with TV or print ads.

Adding OOH to a CPG brand’s marketing mix allows companies to market themselves in markets of all sizes, access critical and relevant data to assess performance and better allocate ad spend, and to successfully build brand loyalty to stand out from competitors in an often overwhelming market. . With growing barriers and competition, now is the time for CPG brands to embrace OOH advertising –– and reap the rewards.

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