And they’re spending more on Online advertising, too. These stats from eMarketer, released today, show that SMBs (small-medium businesses) are using the Internet in more intense ways, now that they are having to do more with less.
This is really becoming a trend. Former CMO of P&G, Jim Stengel, suggested that companies do just this when he discussed the biggest challenges facing CPG marketers in this Brandweek article. He encouraged CPG companies to add digital to the branding model, saying:
“This notion of, ‘What’s the impact of the world going interactive? [adding] digital to the branding model,’ that will just continue. The implications of digital for brands will be very profound for who they are and what they’re trying to do in service of consumers. Push advertising will continue to be less and less important. It’s more about helping consumers, serving, on being of utility and there are lots of ways to do that with the Internet.”
And he ought to know. P&G was always an ardent supporter of digital media, and was one of the major CPG companies to embrace social media platforms and form Online communities.
This shift to digital is really no surprise. Online ad spend is doing better than any other media segment these days, and has been creeping up slowly but surely over the years – why? Because generally, it’s cheaper, and it’s much easier to target ads to the correct audience. These charts, also from eMarketer, show the rise in Online ad spend, and the percentage of media budgets that go for digital ads.