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Wednesday, October 24, 2007

SEO Affects Sales of Consumer Packaged Goods CPG

SEO Affects Sales of Consumer Packaged Goods CPG
CPG retailers need search marketing in their mix

44% of traffic to consumer packaged-goods sites comes from search, according to new joint research from comScore, Procter & Gamble, Yahoo and SEMPO. And these buyers spent 20 percent more in the month following their search activity, reveals the study.

Who knew? Even those looking for CPG go online first..Nearly 163 million unique consumers visited baby, food, personal care and household product sites during the three-month span of the study--with 71 million of those visits originating via search. Baby and food products drew the most search traffic, with 60% and 47% of the visitors arriving via search respectively. 

These stats show both the brand-building and purchase intent benefits that CPG brands can derive from adding search marketing to their mix.

Search-driven CPG site visitors' motivations are important to understnad, says the study.

  • 30% were looking specifically for the company Web site
  • 73% were researching products
  • 64% were seeking help with an actual purchase decision
  • Almost 50% were looking for product promotions

Understanding these CPG search motivations is the key to linking brand benefits to search behaviors says the rpeort.

And if you are a CPG retailer bear in mind the impact of natural or organic search results.  "If you think you're covered by Pay Per Click ads in the search engines, think again" says Marketing Sherpa. 

According to eyetracking studies you get far more views and clicks from organic search.

google golden triangle

 

Of course the trick is to raise your search engine visibility and get your website onto page one in Google for all the brand and generic key words and phrases CPG searchers use to access products like yours.

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Intel Ups Dollars to Digital Media
Big Brands Increase Percentage of Sopend on Online Components

Intel decided to increase its co-op ad spend in digital media by 35% reports Online Spin.  Intel Corp. spends $300 million on their advetising worldwide.  So this is a hefty chunk of change we're talking about here.

 ”We’re going where the consumers have gone,” Sean Maloney, executive vice president at Intel, told The New York Times. “For the longest period of time, consumers formed their attitudes through TV, print, radio, and from the middle ’90s onward, there was more influence from the Net,” he was quoted as saying.

Any marketing or PR 101 class will teach you that you have to keep your eye on where the consumers are.  And just when you think you have them pegged, they shift.  This shift in media influence has been happening for quite a while and there is no doubt anymore that online is where the consumers are.

Take note that Maloney is talking about co-op advertising.  It's 'Intel Insde' brands like Dell, HP, Toshiba, sony and Lenovo.  So they will also be shifting their budgets to more digital media.

In the past 6 months online advertising hit the $10 billion mark, up 27% from last year.

What's in your marketing and PR plan for 2008?



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