Consumer goods brands are revving up their digital marketing but face certain hurdles, judging by the Consumer Goods Industry Insights Report, a global study released Thursday by Salesforce.
Of the companies polled, 77% will increase their digital marketing spend over the next two years. And 54% will budget more for retail media networks that place ads on websites and apps.
The top five digital marketing channels receiving increased investment in the U.S. are:
Email receives even greater emphasis in the Alcohol and Tobacco sector:
Meanwhile, email is tied for first place with social media in use in direct selling programs.
There are several benefits to selling direct to consumers (D2C):
However, there are several challenges to selling direct:
CP brands are also utilizing loyalty programs—70% have one, and 27% are planning to launch an initiative.
One possible hurdle for CG companies is personalization. But most seem to have a grip on it: 76% say they can fully personalize consumer engagement. Another 22% can somewhat do so and 3% simply can’t.
They have many data sources on which to draw:
Email is also a factor in digital service, although not the top one:
Salesforce surveyed 1,500 decision makers across the U.S., Canada, the U.K./Ireland, France, Australia/New Zealand, Germany and Japan.