Digital Overtakes Traditional Ads For Packaged Goods

Digital's dominance is predicted to continue to grow

According to a new study from Cadent Consulting Group, marketers for packaged goods are now spending more on digital than all forms of traditional advertising put together. In 2016, 15.9% of marketing budgets were spent on digital, compared to 15.5% being spent on traditional ads. This gap is expected to grow in 2017 to nearly 20% going towards digital, with traditional shrinking to just over 13%. Meanwhile, the largest marketing spend goes towards trade promotion, a sector which is also expected to shrink in 2017, from 46% in 2016 to 43%. However, even with the increasing focus on digital promotion, another survey found that only 14% of consumers were currently aware of a brand’s digital ads, whilst an even lower 10% said they were in any way influenced by them. A Cadent Consulting Group managing partner, Don Stuart, said that he “wouldn't be surprised to see a bit of a backlash and a move back into more traditional” promotions. 

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