The forecast: The digital advertising landscape for consumer packaged goods (CPG) has seen a significant uptick, with spending due to post its strongest rise in three years in 2024 as companies adjust to changing consumer behaviors. Several factors are behind this sector’s strength:
- The shift toward direct-to-consumer (D2C) strategies has been pivotal. Brands are leveraging online platforms more aggressively to connect directly with their target audience. This is particularly evident in the food and household subcategories, which have seen noticeable year-over-year growth.
- CPG brands are increasingly investing in search ads, shifting from upper-funnel campaigns to performance marketing for immediate, measurable ROI in the competitive online market.
- The increasing reliance on digital advertising reflects a broader CPG industry trend toward more targeted, measurable, and direct marketing strategies. As consumer behaviors evolve, particularly in the digital realm, CPG brands are looking to remain relevant and effective in their advertising efforts.
Key figures: In 2024, CPG is projected to spend $48.79 billion on digital advertising, placing it as the second-highest spender behind the retail industry at $88.13 billion.