The Fast-moving Consumer Goods (FMCG) market is one of the largest and most lucrative entities in the world, while it also features some of the most prominent global brands. U.S. brand Nestle remains at the pinnacle of this market at present, with its huge product range and an estimated market cap value of $257,379 million.
Brands in this market are also increasingly likely to advertise their products online, at least if the latest figures are to be believed. While corporations like Proctor & Gamble slashed their advertising budgets last year, for example, FMCG brands increased their mobile spend by 28% during the same 12-month period.
Despite this, the FMCG market leaders continue to recognise the importance of integrated marketing campaigns, as they look to build brand awareness and target customers through a diverse range of mediums. Below, we’ll consider the particular benefits of out-of-home (OOH) media for FMCG brands and ask how this medium can be leveraged successfully.
The Benefits of OOH Media for FMCG Brands
In the FMCG market, we’ve seen the typical customer journey evolve considerably in recent years.
This is borne out by figures that hint at a wider trend in the retail market, as while online and social channels have become increasingly influential product reference and research tools, the majority of customers still prefer to make final purchase options in-store.
In fact, although 84% of customer prefer to browse products online in the digital age, an impressive 53% continue to make their final purchasing decisions while shopping and on the move.
Not only this, but approximately 88.1% of all retail purchases are completed offline at present, and while this figure will continue to decline incrementally between now and 2021 there’s little doubt that FMCG brands must leverage integrated marketing techniques to drive traffic in-store.
OOH media is ideal for this purpose, and there are two main reasons for this. Firstly, it’s estimated that 98% of consumers interact with at least one billboard or OOH ad each week, optimising exposure for FMCG brands within their target audience.
This enables advertisers to generate brand awareness and cultivate a strong offline profile, in a market where companies reserve much of their marketing spend for digital channels. As a result, they can effectively promote the values of their brand while also driving a high volume of customers in-store, boosting their potential conversion rates in the process.
Ads placed at the roadside or within close proximity to stores are also extremely effective, as they help advertisers to heavily influence their customers’ purchasing decisions and tap into impulsive buying trends in real-time.
We spoke briefly about the role that OOH media plays in integrated marketing campaigns, but one of the biggest benefits of this for FMCG brands is that it creates an holistic profile that reaches the optimal number of consumers both on and offline.
This helps advertisers to achieve far greater levels of brand recognition over time, and this can make the difference between successful and failed campaigns in competitive markets such as the fast-moving consumer goods space.
This is an important, but often overlooked, consideration, and one that helps brands to strike the balance between maximising their exposure within key target demographics and maintaining their consistency of message and visual identity.
Then there’s the relationship that exists between OOH media and digital interactions, with marketing channels such as billboards renowned for their ability to drive assisted conversions.
Customers who engage with OOH media are considered to be 17% more likely to interact with a brand through their mobile, for example, which is ideal for FMCG companies who are looking to advertise new products and encourage customers to research them online.
At the same time, OOH is thought to trigger a particularly high rate of interactions between customers and the social media channels of individual brands (particularly Twitter and Instagram). As a result, FMCG brands can harness the power of OOH to build awareness of individual products or promotions and drive further interaction online, in the hope of cultivating the customer journey and converting consumers in-store at a later date.
Remember, FMCG brands also increased their mobile spending considerably in 2017, and by integrating this closely with OOH media they can achieve a far greater ROI.
Even on a fundamental level, OOH media represents the ideal marketing medium for FCMG brands. After all, companies such as Kellogg’s create products for the mass marketplace, while outdoor advertising connects them to a vast target audience that is likely to have in interest in their offerings.
Channels such as large format billboards are also nonintrusive and blend seamlessly into the natural environment, while customers cannot apply filters remove these ads or block them from site.
As a result, they tend to be treated with less cynicism by consumers who have seen the online space saturated during the last decade, while the perennial visibility of billboards (particularly traditional ads) offers the potential of increased leads and conversions for FMCG brands over time.
And Now for the How – Making OOH Media Work for FMCG Brands
As we can see, the marriage between OOH media and FMCG brands is an increasingly compatible one, particularly in an age where integrated marketing campaigns are becoming central to the customer journey.
Still, the question that remains is how can OOH media be leveraged to build successful marketing campaigns in the fast-moving consumer goods space? Let’s take a look:
Remember the Importance of Location
If your primary reason for using OOH media is to drive traffic in-store, the location of your ads remains the single most important factors.
Roadside advertising is particularly well-suited to this objective, particularly when you target busy commuter locations with large, 48 or 96-sheet billboards.
After all, it’s estimated that an estimated 16.7 million people in the UK travel to and from work by car, with this number increasing year-on-year. Not only this, but around 37% of customers claim that they look at the same outdoor ad almost every time that they pass by, and this creates significant exposure given that commuters make the same journey every single day.
Targeting retail parks and ad spaces close to your store can also yield excellent results, as customers are far more likely to make impulsive purchasing decisions while on the move and shopping.
While you may need to use slightly smaller ads in such locations, you can use concise messaging and a relevant call-to-action to drive traffic in-store and boost conversions!
Create Consistent and Eye-catching Brand
Earlier in the post, we talked about the importance of driving brand recognition through integrated and holistic marketing campaigns.
The key to achieving this lies in the vibrancy and consistency of your branding, which must serve to engage passing consumers and prompt almost immediate recognition.
This is made easier by the presence of brand guidelines and a consistent colour palate, of course, which should include both primary and secondary shades for different applications and be differentiated from key competitors.
To keep your visual branding sharp, you should also strive to use bright and colourful tones wherever possible, while also utilising high quality and well-captured imagery that is memorable.
By taking these steps, your brand will be sure to resonate in the minds of new and existing customers alike, even in a competitive and busy market like the FMCG space.
Avoid Cynical or Overly Promotional Messaging
If we accept that OOH media is a nonintrusive marketing medium that boasts naturally high levels of engagement, it seems a shame to spoil this with cynical or overly promotional messaging.
After all, while there’s a need to encourage further interaction and use calls-to-action as a way of influencing the consumer’s next step, we live in an age where customers are increasingly cynical of big brands and their intentions.
In some instances, the use of aggressive promotions and sales jargon only serves to compound this sense of mistrust, completely undermining one of the main benefits of using OOH media in the first place.
Instead, focus on using concise and punchy copy that eliminates fluff and makes room for compelling imagery.
At the same time, try to write in a conversational and active tense wherever possible, as this is more likely to build a relationship between customers and your brand while also creating a sense of excitement.
The Last Word
By following these actionable steps, you can realise the full potential of OOH media and leverage this to boost the appeal of your FMCG brand within the mass market.
Above all else, remember to focus on creating a consistent brand identity that is the same both on and offline, while also taking the time to understand the precise role that you want outdoor channels such as billboards to play in your customer’s journeys.