How CPG Advertising Works
A guide to advertising for Consumer Packaged Goods with APEX Mobile Media
As Canadians continue to embrace online shopping on mobile and in-app, CPG brands are presented with an opportunity to connect with consumers in real-time, reach a wider audience, and further drive sales.
The modern CPG customer is an individual that lives almost their entire life online using a device that fits in the palm of their hand. It is how they shop, communicate, socialize, stay entertained and learn. The mobile device is now the main screen in-front of almost every single Canadian.
For CPG brands this shift in consumer behaviour has led to a re-evaluation of media and marketing budgets.
How effective is mobile advertising for the CPG/Food & Beverage industry?
With a Click-Through Rate (CTR) of 0.35% in the Food & Beverages (F&B) sector of the Consumer Packaged Goods industry, mobile ads for CPG outperform many other verticals. This CTR is a strong indicator for impressive Return on Ad Spend (ROAS) as increased clicks hold the potential to result in a higher volume of sales.
The high CTR suggests that consumers in this area are exceptionally responsive to mobile advertising, making it an efficient channel for engagement. These campaigns become even more effective when the ad includes a high quality call-to-action or direct offer such as “click to reveal discount code” or “buy-one-get-one”.
Mobile advertising offers precise targeting capabilities, allowing CPG businesses to reach the right audience based on location, demographics, interests, and behaviours.
Visual appeal plays a significant role in the F&B sector, and mobile ads leverage high-quality images and videos effectively. Additionally, the convenience of mobile shopping and the integration of mobile ads with social media platforms contribute to its effectiveness.
What are the key mobile advertising platforms and channels for CPG companies?
All mobile platforms have the potential to be key channels for CPG brands. There are various platforms available to run ads on mobile. Display, video, rewarded video, in-game audio, and in-game display can all be leveraged to produce impressive performance for CPG companies.
The platform chosen is very much dependent on the type of target (location and/or audience) the brands aim to reach. The most sought-after platforms for CPG brands are Display Ads due to the ability to reach a large audience at low cost through this medium
Additionally, one of the most effective forms of mobile advertising for CPG brands is In-Game Audio. In-Game Audio Ads allow CPG brands to capture gamer's attention effectively, which leads to higher CTRs and brand awareness.
Which ad formats work best for CPG?
CPG brands can boost their mobile advertising by using a mix of various ad formats effectively. The key is to ensure effective ad communication, regardless of the format.
The most effective mobile advertising formats for CPG are:
1. Banner ads
Banner ads are ideal for concise messaging and reaching a broad audience since they appear on most websites and apps.
2. Interstitials
Interstitial ads are like banners but offer more space for information, leading to better visibility and improved CTRs.
(Average Interstitial CTR is 0.65%).
3. 6-15 second videos
Videos effectively convey messages and attract customers by showcasing product appeal or benefits. It's recommended to keep videos under 15 seconds to cater to the short attention span of modern mobile users.
How to create engaging mobile ads for CPG
To ensure high engagement and interaction, it is important for the ads to reach the right audiences.
For example, a snack brand may want to raise brand awareness and engage with their brand with their target audience. To achieve the same, they would target banner ads to a certain demographic in specific store locations in Canada, emphasizing proximity to stores.
This would be in line with their audience as those stores sell that snack brand which would thereby lead the user exposed to the ad to take action and click on the ad, and later prove to be sale conversion too.
The most effective mobile advertising formats for CPG are:
1) Content
Ad content should be tailored to align with preferences and interests of the target audience.
3) Location
Leverage location-targeting effectively. Craft ad messaging that highlights the proximity of the advertised product to the selected stores.
2) Insights
Use data-driven insights to understand the target audience's interests and preferences and ensure content is relevant
4) Visuals
Use high-quality images showcasing the features, benefits, and uses. Visuals should be attention-grabbing and convey the product's value effectively.
5) Testing
Continuously test different ad creatives, messaging, and formats to determine what resonates best with your target audience.
How to measure ROI for ​
CPG mobile advertising campaigns
In order to measure ROI, the ad campaign should be bought and run as a CPC, CPE or CPA campaign. However, most brands opt for a CPM model as they aim to increase brand awareness which means calculating ROI becomes more difficult. In this case, there are other metrics to analyze effectiveness of campaigns, which also depends on the mobile ad format being utilized. (banners, interstitials, video, in-game audio, etc.)
Other ways to measure effectiveness of campaigns include Brand Lift Studies, Foursquare Attribution Studies and Pixel Placement on brand websites to measure actions taken from ads.
1) Brand Lift Studies
In-Depth Analysis:
Brand Lift Studies delve deep into how an ad campaign impacts brand perception and consumer behaviour. It measures key brand metrics such as awareness, favourability, and purchase intent before and after exposure to the ad
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Real-time Feedback:
These studies provide real-time data, allowing marketers to make quick adjustments if the campaign isn't achieving the desired results. This can help in optimizing ad creatives and targeting strategies
Cross-Platform Insights:
Brand Lift Studies can assess the effectiveness of campaigns across various platforms, including mobile devices and in-game ads, providing a comprehensive view of performance
2) Foursquare Attribution Studies
Location Based Insights:
Foursquare Attribution Studies leverage location data to understand how mobile and in-game ad campaigns drive foot traffic to physical locations, such as stores and restaurants. This is particularly valuable for brick-and-mortar businesses.
Granular Data:
These studies offer granular insights into user behavior, including visitation patterns, dwell times, and repeat visits. Marketers can use this data to optimize their ad targeting and messaging.
Competitive Benchmarking:
Foursquare Attribution Studies can also provide competitive benchmarking, allowing businesses to compare their campaign performance against industry standards.
3) Website Pixel Tracking
Actionable Data:
Placing pixels on brand websites is an effective way to measure the actions users take after interacting with mobile and in-game ads. This can include tracking website visits, conversions, and other desired actions (e.g., sign-ups, purchases).
Conversion Attribution:
Website pixel tracking helps attribute conversions back to specific ad campaigns or channels, enabling marketers to identify the highest-performing channels and allocate resources accordingly.
Audience Segmentation:
By tracking user behaviour on the website, marketers can create audience segments based on their interactions with ads, allowing for personalized retargeting and remarketing efforts.
4) Multi-Touch Attribution
Comprehensive Attribution:
In addition to the mentioned methods, consider implementing multi-touch attribution models. These models provide a holistic view of the customer journey, considering all touchpoints across various channels, including mobile and in-game ads.
Data Integration:
Multi-touch attribution often requires integrating data from multiple sources, including ad platforms, CRM systems, and analytics tools. It allows for a more accurate assessment of how different ad channels contribute to conversions.
Optimization:
This approach helps marketers allocate budgets effectively by understanding the entire customer journey. It can reveal the synergistic effects of different ad channels working together to drive conversions.
5) A/B Testing and Experimentation
Continuous Improvement:
Beyond measuring, ongoing A/B testing and experimentation are critical. Marketers can use this approach to test different ad creatives, ad formats, and targeting strategies to identify what resonates best with their target audience.
Iterative Optimization:
By consistently refining ad campaigns based on A/B test results, marketers can achieve better campaign performance over time, ultimately increasing ROI.
User Feedback:
Incorporating user feedback and preferences into the testing process can lead to more customer-centric ad campaigns, resulting in higher engagement and conversions.
The Difference Between Seasonal
Strategies for CPG
November to January Campaign
Rest of Year Campaign
Objectives / Targeting:
A premium Granola snack brand aimed to engage their target audience through location-based strategies in Colorado and Massachusetts. Their objectives included implementing GeoFence and InStore/InPath targeting at specific Target and King Sooper locations in these states.
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Additionally, they used GeoRetargeting to reach devices seen at least twice in the past 60 days, and employed GeoAudience targeting focused on home blocks within 4km of selected stores, with an emphasis on adults aged 25+ and those who purchase natural/organic food products.
Objectives / Targeting:
A snack brand sought to connect with its audience using two location-based strategies. First, they employed a GeoFence approach, targeting current in-path and in-store Costco shoppers with a precise geo-fence around select Costco stores and parking lots.
Second, they utilized GeoRetargeting, focusing on recent Costco shoppers by targeting devices that had been detected at a specific Costco location at least three times within the past 60 days.
Despite being run at different times of the year, these CPG brands used very similar targeting, showcasing the potential for this vertical to spend money on advertising effectively at any time of year
How can brands use mobile advertising to drive traffic to a store or e-commerce site?
In order to effectively use mobile advertising to drive traffic to e-commerce platforms or retail stores, a mix of strategies can be implemented to drive desired performance.
For example, if a brand is intending to raise awareness and engage with their target audience, banner ads could be targeted to a certain demographic in specific store locations in Canada, emphasizing proximity to stores that carry their products.
This brand could implement the following strategies:
1) Geotargeted Ads
Utilize geotargeting to display ads specifically to users within the vicinity of the target retail stores. Promote exclusive in-store offers or discounts in these ads to incentivize foot traffic.
2) Location Specific Messaging
Ad messaging should be tailored to each province or city, highlighting the availability of of products at nearby stores, creating a sense of convenience for potential customers. For instance, mentioning "Find Us at Your Nearest [Store Name]" in Toronto, Montreal, Vancouver, Calgary, and Halifax.
3) Incentives and Promotions
Offer mobile-exclusive promotions or discounts that users can redeem at your retail stores. Use phrases like "Show this ad for 10% off" or "Limited-time offer at our [Store Name]." This encourages users to visit physical locations.
4) Multi-Touch Attribution
Capitalizing on in-path moments by targeting users when they are in the vicinity of retail stores. Sending location-triggered push notifications or ads to remind target audience of nearby store locations and promotions.
5) In-Path Moments
Implement retargeting campaigns to re-engage users who have previously shown interest in products but have not yet made a purchase. Showing ads highlighting nearby store locations and special offers to encourage conversion.
6) Analytics and Optimization
Continuously monitoring the performance of mobile ad campaigns using analytics tools. Tracking metrics like click-through rates (CTR), conversion rates, and in-store visits. This data can be used to optimize campaigns for better results over time.
What are the best practices for mobile advertising in terms of privacy and data protection?
Mobile advertising, like all forms of digital advertising, has become increasingly regulated to protect user privacy, data and young users. Advertisers and marketers must adhere to these regulations to build trust with their audiences and avoid potential legal consequences.
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Advertising today can be tricky as legislation around user protection continues to evolve, which is why it's paramount to work with an ad network that upholds privacy and data protection standards, especially with changing regulations. A commitment to maintaining the trust of all users and adhering to the latest privacy laws is fundamental from any advertising network.
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Prioritizing transparent data collection practices, and anonymizing user data adds an extra layer of protection, reducing the risks of breaches. Modern ad-networks will work closely with third-party vendors who share a strong commitment to privacy compliance through regular audits and Data Protection Impact Assessments that further help to stay on top of evolving regulations.
For advertisers, having privacy integrated into the very design of all mobile advertising campaigns strikes a balance between effective advertising and respecting user privacy, ensuring a secure and trusted mobile advertising experience.
Can innovative technologies like augmented reality (AR) or virtual reality (VR) be incorporated into mobile advertising campaigns?
Augmented Reality (AR) and Virtual Reality (VR) are opening exciting avenues in mobile advertising, enriching user experiences in innovative ways.
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AR is often integrated through mobile apps, enabling users to interact with digital overlays in their real-world environment. For instance, users can virtually try on products like clothing or cosmetics, creating a highly engaging shopping experience.
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VR, on the other hand, immerses users in entirely virtual environments, offering a unique storytelling platform. In mobile advertising, VR can be leveraged to transport users into branded virtual worlds or provide immersive product demonstrations. Both AR and VR captivate users' attention, and this engagement can result in higher brand recall and increased user interaction.
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New technologies like AR and VR will require modern advertisers to strike a balance between creative immersion and respecting user privacy, ensuring that AR and VR experiences are non-intrusive and user-centric. As these technologies continue to evolve, mobile advertising networks are exploring new and creative ways to harness AR and VR's potential for delivering more compelling and memorable brand experiences.
How do we stay competitive in the mobile advertising landscape and keep up with evolving consumer behaviours?
Staying competitive necessitates a keen understanding of evolving consumer behaviors and preferences. Today, many ad networks are adopting several modern strategies and tactics to remain relevant and effective. For example, ad networks are leveraging more demographic, and personal data and analytics to gain insights into user behavior and preferences, allowing for more targeted and personalized ad campaigns.
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Staying competitive will also require embracing emerging technologies like artificial intelligence and machine learning which can enhance ad targeting and efficiency. Today's advertisers should also look to partner with ad-networks that are at the forefront of exciting and new creative ad formats that are non-intrusive and that respect user experiences, as ad-blockers are becoming more prevalent.
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A new trend also has many ad-networks aligning with sustainability and social responsibility trends that can resonate with conscientious consumers.
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Advertisers in the digital age must be ready to pivot and adjust strategies rapidly as consumer behaviors evolve. In this dynamic environment, continuous learning and proactive innovation are key to ensuring that advertisers not only keep up but also lead the way in the mobile advertising arena.
Can personalized and tailored mobile ads for different consumer segments be created?
One of the many advantages of advertising on mobile is that ads can be personalized and tailored to serve different audience segments. The Demand-Side-Platforms (DSPs) where the ads are set-up are able to create various customer audience segments in specific target locations as required using data. This allows advertisers to run dynamic ads which automatically adjust their content based on the user's profile and behaviours. For example, an e-commerce app can show products related to the user's past purchases or browsing history. This dynamic approach then results in increased relevance and user engagement.
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These DSPs also allow advertisers to leverage frequency capping. Frequency capping can limit the number of times a specific ad is shown to users over a certain time period to avoid ad fatigue as bombarding users with the same ad repeatedly can be counterproductive. This ensures that the ad remains effective without becoming annoying and resulting in negative brand perception.
What are the best ways to encourage user-generated content and social sharing
through mobile advertising?
Encouraging user-generated content and social sharing through mobile advertising requires a thoughtful approach.
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Crafting compelling and shareable content that resonates with your target audience is a great place to start. This content should evoke emotions or provide value. Some advertisers also run contests or campaigns that motivate users to create and share their content related to a specific brand, as this can drive engagement and organic sharing.
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Today, social interactions happen in many platforms outside of the conventional social media site. For example, many users log into 3D gaming world environments to simply socialize with other users. This shift has many brands looking to connect with gaming influencers and streamers to amplify reach. In essence, creating a sense of community and inclusivity around a brand can inspire users to become brand advocates, generating user-generated content and social sharing.
What role does mobile advertising play in driving brand loyalty and long-term customer relationships for CPG brands?
For mobile advertising, driving brand loyalty and long-term customer relationships for Consumer Packaged Goods (CPG) brands is substantial; as mobile advertising provides a direct and personalized channel to engage with consumers.
By using data-driven targeting, CPG brands can reach the right audience with tailored messages and offers. Consistent and relevant mobile ads foster brand recall and keep products top of mind. Additionally, loyalty programs and exclusive mobile app features can incentivize repeat purchases. Moreover, mobile advertising facilitates timely promotions and product launches, making it easier for CPG brands to connect with their audience. By providing value and convenience through mobile ads, CPG brands can nurture brand loyalty and build enduring customer relationships, turning occasional buyers into lifelong brand advocates.
How can mobile advertising be used to promote sustainability and ethical practices in our brand?
Advertising on mobile allows CPG Brands to create ads that can be personalized and tailored as per various different audience segments. The Demand-Side-Platforms (DSPs) where the ads are set-up have the power of data to work with and create various customer audience segments in specific target locations as required. This allows advertisers to run dynamic ads which automatically adjust their content based on the user's profile and behaviour.
For example, an e-commerce app can show products related to the user's past purchases or browsing history. This dynamic approach increases relevance and user engagement.
Using the high quality data available allows brands to target audiences down to the postal code and exact store locations and then mix it with various demographics and even historic consumer behaviours and habits.
These DSPs also allow advertisers to use Frequency Capping. Frequency capping is a technique that limits the number of times each ad is shown to individual.
Advertisers can set frequency caps to limit how often an individual sees a particular ad. This ensures that the ad remains effective without becoming intrusive.
In-App Mobile Advertising;
Advertising where your audience is
In-app mobile advertising stands at the intersection of technology and user experience, offering brands an efficient way to engage with their audience. By understanding the technical intricacies of how in-app mobile advertising works, businesses can unlock its full potential to create impactful campaigns in the ever-evolving mobile landscape.
For expert in-app mobile advertising solutions and insights, and to see how you can execute your next mobile advertising campaign with any of the below mobile and connected advertising tactics: contact APEX Mobile Media rep today!
At APEX we’re helping brands in the media and entertainment industry connect with consumers of all ages, genders and background across premium in-app inventory that ranges from lifestyle apps, gaming, and more!
How can brands use mobile advertising to drive traffic to a store or e-commerce site?
Advertising on mobile allows CPG Brands to create ads that can be personalized and tailored as per various different audience segments. The Demand-Side-Platforms (DSPs) where the ads are set-up have the power of data to work with and create various customer audience segments in specific target locations as required. This allows advertisers to run dynamic ads which automatically adjust their content based on the user's profile and behaviour.
For example, an e-commerce app can show products related to the user's past purchases or browsing history. This dynamic approach increases relevance and user engagement.
Using the high quality data available allows brands to target audiences down to the postal code and exact store locations and then mix it with various demographics and even historic consumer behaviours and habits.
These DSPs also allow advertisers to use Frequency Capping. Frequency capping is a technique that limits the number of times each ad is shown to individual.
Advertisers can set frequency caps to limit how often an individual sees a particular ad. This ensures that the ad remains effective without becoming intrusive.
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