By Sandeep Sabharwal, Httpool Twitter Partner Director
The new post Covid-19 reality has propelled digitalisation forward by five years. McKinsey research suggests that it could take anywhere between three to ten years for us to feel that going to supermarkets is again a safe and convenient way of grocery shopping.
Why does this matter? Because the global FMCG market size is projected to reach $15,361.8 billion by 2025, registering a CAGR of 5.4% from 2018 to 2025, according to the Research and Markets Report. This makes FMCG the largest group of consumer products alongside the production, distribution, and marketing of these consumer goods.
Alongside the growth in the industry, FMCG/CPG also achieved notable growth in digital ad spend worldwide. Research from eMarketer shows that quarter two of 2020 saw up to a 53% increase in ad spending in the FMCG/CPG sector. According to eMarketer research, CPG advertisers in the USA spend heavily within the mobile sector, with the most popular form being display advertising on social networks and video platforms.
In 2021 digital video advertising is expected to be the fastest-growing format in CPG ad spending, rising 17.1% to $5.54 billion in the USA alone. Digital video ad spending will make up 47.5% of CPG’s spending on display advertising in the USA and 28.6% of its overall digital spend.
People love to talk about FMCG/CPG products on Twitter.
What better way to advertise your products than on a platform, where they are openly discussed in an engaging manner. Statistics show that 192 million people were active on Twitter in Q4 2021, and 27% year over year growth in Twitter’s active audience. Twitter has become a home to open discussions, product reviews, and recommendations, users are actively engaging with one another. Thus, Twitter is a great platform for FMCG/CPG brands to launch new products. Join in on user conversations, provide helpful tips, and announce special offers.
The Marketing Dive reported that Kraft Heinz, Nestlé, and Coca-Cola were among the top five Twitter ad spenders in 2019. The concentration of FMCG/CPG brands within Twitter’s top advertisers demonstrates the sheer value Twitter holds for brands in this industry.
Most FMCG/CPG brands use Twitter to run ads and organic campaigns, however Twitter has proven particularly successful for product launches. Average results from Twitter launch campaigns include a 82% higher recall, 18% increased brand awareness, 21% increased campaign awareness, and 15% increased message association.
Heinz is one of the largest players in the FMCG/CPG Business. Upon their decision to launch mayonnaise as a new product they discovered that a heated discussion was already in motion on Twitter surrounding Mayochup, a Heinz product previously launched in the Middle East. Following this, the Heinz brand team leveraged this debate, turning the discussion to Heinz Mayonnaise, by using Mayochup as a gateway. Instead of a simple tweet to drive conversations, the brand created a Twitter poll asking users whether the product should be released into US markets, the poll required 500,000+ yes votes to bring the product to market.
As a result of this innovative approach Heinz successfully achieved a 28% increase in brand awareness. Find the whole case study here.
Innovation, proactiveness and a little bit of humour can thus propel FMCG/CPG advertisers on Twitter to win with their launches. And in the next phase of the post-Covid reality, the home of open discussions, product reviews, and recommendations, and extremely engaged members of the audience is certainly an essential part of a good marketing mix.
Read the full #HttPaper on FMCG/CPG vertical here.