Mobile Insights: CPG companies are learning: consumers love mobile for immediacy, fun and finding great deals

Welcome to the fifth post in our Mobile Insights series featuring viewpoints from our Google mobile ads team. This week, our guest contributor is Matt Dorfman, Account Executive. Matt shares his insights on how mobile advertising in the consumer packaged goods space can make lasting connections with consumers.

Mobile is playing a central role in how customers interact with consumer packaged goods (CPG) brands. According to a recent smartphone study, 79% of users rely on smartphones to help with shopping – 69% for more product information, and another 70% while shopping in the store. (1)
The price-conscious shopper may want to redeem a mobile coupon to save $1 on a tube of toothpaste. Another may want to know the most eco-friendly brand of detergent as they shop in store. Or, the more competitive among us may use their mobile device to win a prize via a promotion for their favorite sports drink.

CPG companies typically rely mainly on brand advertising – often through TV campaigns – to connect with consumers. Mobile, provides new ways for consumers to experience CPG brands and connect with products and offers, yet many CPG marketers are not using mobile to reach consumers – and they are missing out.

Whether someone is looking for offers or trying to find your nearest location, many consumers are searching for you on mobile devices. Google’s research shows that 12% of mobile search queries are related to food and beverage items, and 15% of queries center around home and personal care. So how can CPG marketers mobilize their brands and make sure they stake their claim to the mobile marketing landscape?

Make consumers an offer
First, provide something useful or solve a problem that a customer has. Try couponing on mobile exclusively – and be sure you’re dovetailing with retailers to close the loop. 
 
In December 2010, Adidas offered customers 15% off purchases made in an Adidas store of $75 or more. The mobile Offers Ads campaign doubled in-store coupon redemption and increased the average in-store order value.

Go local
Mobile users are searching for information locally. Now, you can use hyperlocal distance information with location extensions, an enhancement that lets your customers know how close they are to a business. In this case, the business would be a retailer you have partnered with that carries your products. This high-end mobile device feature provides users with down-to-the-block-level detail about a business including address, phone number and location on Google Maps for Mobile.

Just test it!
Run a few mobile-focused campaigns to experiment with mobile advertising. In Q4 2010, Mindshare, Kimberly-Clark’s interactive agency, implemented a comprehensive mobile ad test program honing in on specific brands, devices and keywords. The combination of CPC and click-through rate (CTR) for mobile was 70% better than the same stats on the desktop for the test brand.

Get creative
Think of an experience for consumers that is unique to mobile. To engage Android device users across US, Coca-Cola decided in 2010 to promote a lighthearted holiday live wallpaper app. Says Wendy Clark, Senior Vice President, Integrated Marketing for Coca-Cola, “If your plans don’t include mobile, then your plans are not finished.” (2)

We tend to agree. CPG brands need to have a strong mobile strategy, and Google mobile ads can help.


Posted by Matt Dorfman, Account Executive, Mobile Ads


(1) The Mobile Movement: Understanding Smartphone Users,” a study from Google and conducted by Ipsos OTX, an independent market research firm.
(2) IAB Annual Leadership Meeting 2011

Mobile Insights: CPG companies are learning: consumers love mobile for immediacy, fun and finding great deals
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