Food and beverage on-line advertising to grow

by Staff
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NEW YORK — According to eMarketer’s report "CPG Online: Food and Beverages Party On," the food and beverage industry is leading the U.S. consumer packaged goods industry in on-line advertising.

The food and beverage industry invested a shade more than 2% of its total $8.7 billion advertising spending in on-line outlets in 2006.

While this is still a small percentage, eMarketer estimated that of the $600 million the consumer packaged goods industry will spend on advertising this year, the food and beverage marketers will spend $288 million — representing a 36% increase from 2006. It also is estimated that growth will decrease to 11% in 2008, partly due to more regulations and concerns about advertising targeted to children.

The Internet was the only medium that increased in 2006 in terms of food and beverage advertising.

"Consumers cannot download dog food, so they rarely go on-line and search for it," said Lisa Phillips, senior analyst and author of the report. "That is the thinking behind the CPG industry’s relatively low spending on search marketing. Such thinking may be detrimental to CPG success on-line."

The report also said growing platforms the industry hasn’t taken advantage of include social networks, games, on-line video and mobile marketing and paid search and on-line coupons.

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