The consumer packaged good industry will spend $470 million in online advertising this year--up 17 percent from last year, according to a new eMarketer report. As a proportion of online ad spending
overall, however, packaged goods will account for just 3 percent of the $15.6 billion expected online ad revenue this year. eMarketer based its calculations on an analysis of revenue estimates issued
by the Interactive Advertising Bureau and PriceWaterhouseCoopers. Where does that money go? According to eMarketer, online ad dollars mainly go to e-mail marketing and display ads, with relatively
little spent on search. The report, "CPG Online Marketing: Relationships Take Over," by senior analyst Lisa Phillips, also concluded that packaged goods marketers have started using the Web to manage
customer relationships, offering consumers content like ring tones, podcasts, and personalized calendars. -- Wendy Davis
