Unicast

CPG spending is projected to grow faster than any other industry over the next five years and it’s not just because interactive is a low-cost medium.

Coming out of the recession, companies are definitely trying to maximize their spend and find low cost methods of reaching their customers. While CPG companies are no different, they are also exploring new methods of engaging their customers and building brand loyalty. A recent Unicast CPG client tested incorporating a game into their advertising campaign and low-and-behold this campaign for a simple household product that some might even dare to call boring generated a higher interaction and click through than many of the campaigns with a much more exciting product.

This year Pepsi did not participate in the Super Bowl in favor of putting that spend to work in social media. Many might call this a mistake, others might think this is a move based on the recession and cutting back to protect the P&L. I think the CPG companies are on to something much larger and their increasing spend in this category is a direct result.

To view the entire Forrester research report click here:

Consumer Goods Interactive Spend Outpaces Other Industries.pdf (159.15 kb)

Advertisers can spend over $10 million on buying television time during the biggest football game of the year and that isn’t even counting the cost it takes to produce the spot itself. Sometimes, it’s the majority of their budget for the entire year, all for only a minute or two of face time in front of viewers (who are most likely distracted by beer and socializing) or the chance to be voted #1 in USA Today’s Ad Meter_^SM poll. What if advertisers used that money for something else, something better?

So, in a daring act of altruism, Pepsi relinquished “their multi-decade, multi-million dollar Super Bowl opening ad position_¹” as well as other slots throughout the game and instead, offered everyone a chance to change the world. The gist is simple: Pepsi is offering $20 million in grants of varying sizes to individuals, groups, and organizations that have the most inspired idea with the most online supporters. Submissions started coming in mid-January and so far, there are 729 ideas in the running for a March 1 decision.

Pepsi has created a site called “Refresh Everything” to support this noble campaign: http://www.refresheverything.com/ where users can submit their ideas and/or vote on others’ proposals. The campaign has been viral for the most part, but Pepsi is still spending some bucks on TV commercials. As this is long running initiative, it will be interesting follow their advertising efforts and see which mediums they choose to utilize the most.

While some of the ideas are small, like sending Girl Scout cookies to our troops overseas, and some are larger in scope, like helping to provide free healthcare to those less fortunate, the point is that Pepsi is choosing to take the road less travelled. And that will make all the difference.

¹ http://www.digitalbuzzblog.com/the-pepsi-refresh-project-social-campaign/

Learn More About the Pepsi Refresh Project:

http://www.refresheverything.com/how-it-works

http://www.msnbc.msn.com/id/33797502

http://theinspirationroom.com/daily/2010/the-pepsi-refresh-project/