It is shaping up to be a pivotal year. We recently learned that people in the UK will spend more time online in 2014 than they will spend watching television. The last time this kind of change happened was in the 1950s, when TV surpassed radio.

Retailers and brands can use it to gain competitive advantage. Digital technology adds complexity to the marketing landscape. But there is a huge upside in that fmcg marketers can employ large, people-based platforms rich with data to drive sales and grow brands in ways that both complement and rival the efficacy of other mass media.

“Digital technology has enabled marketers to make business personal”

As the industry looks to navigate this digital space, I believe the future of increasing consumer spending in fmcg will rest largely on three key themes: putting people first, emphasising brand and capitalising on promotions and seasonal opportunities.

First, put the ‘C’ back in fmcg. Products have life cycles, but people have lives. Find ways to fit into his or her unique life. Whether launching a new product or increasing the share of an existing one, engaging with people in ways that matter to them, on platforms they use most, is the best way to become what matters to people. For context, people spend more time on Facebook and Instagram than Google Properties, YouTube, Yahoo!, MSN, AOL, Twitter, and Pinterest combined [ComScore July 2013].

Second, keep your brand front and centre. As people increasingly use their devices to spend time on large, digital platforms discovering what matters to them, the Nestlés and Pepsis of the world can reach people consistently and with meaningful, relevant messages. This empowers marketers to amplify their brand’s story via regular personalised contact making it matter over time - in stark contrast to other mass media. Brands can turn customers into loyal advocates. When this happens, retailers also benefit by driving category sales.

Finally, capitalise on promotions and seasonal opportunities. With digital technology has come accurate consumer identity and rich targeting capabilities. As this crystallises for marketers, we’ll continue to see an increase in personalised ads and offers that increasingly eliminate the need for traditional circulars.

In this scenario, the entire industry benefits. People get what they want, manufacturers can vary incentives and retailers benefit from more in-store traffic and sales. Vast amounts of data also allow marketers to celebrate many different things that matter to many people. Beyond the obvious, such as the holiday season, back-to-school or Valentine’s Day, digital technology gives businesses more flexibility on how and when to approach customers.

It’s exciting to think that digital technology has brought about and will continue to bring tremendous growth opportunities. Perhaps more importantly, it has enabled marketers to make business personal again. Moving beyond blunt demographics and more towards perfectly timed and tailored messages not only makes for more efficient, more effective marketing, but it adds real value to people’s lives.

Erin Hunter is global head of CPG/fmcg strategy at Facebook

Topics