CPG advertising analysis: feeling the love from YouTube

Posted by Isobel Drake on 24th June 2009

Nielsen announced today that image-based online ad spending by Consumer Goods companies increased in the US by 57 per cent over the last two years, despite the concerns over the economic environment.

“While direct response advertising has been very successful on the Internet, with categories like finance and travel devoting a significant portion of their budget to online advertising, on-line advertising will not continue to grow as rapidly without major brands beginning to devote larger portions of their ad budgets to the Web. We are seeing some of that happen now with Consumer Packaged Goods companies, which are growing their budgets despite a down economy,” David Wiesenfeld, Vice President, online marketing solutions at Nielsen, noted.

YouTube is No. 1 Entertainment Site for CPG Advertisers
In Q1 2009, YouTube was the top entertainment Web site advertised on by consumer product companies, with 637.7 million display ad impressions and a 24 per cent share of all advertising in the genre. YouTube was also the fastest growing site among the top 10, increasing 572 per cent year-over-year.

“YouTube, as the most visible example of online video, is working hard to monetize their inventory across a number of verticals and Consumer Goods may hold particular promise in that effort,” Mr Wiesenfeld explained.

Top CPG Product Categories Purchases by YouTube Visitors
It appears that the YouTube focus is paying off for some grocery sectors, with households that visit YouTube found to be 32 per cent more likely than the average household to buy packaged tea in Q4 2008. YouTube visitors also enjoyed fruit juice during the quarter, being 19 per cent more likely to purchase pineapple juice and 15 per cent more likely to purchase nectar juices than the average household. In contrast, YouTube households were 13 per cent less likely than average to buy canned-ham and canned-grapefruit. Gingerbread mixes and frozen meat were other items that lacked appeal amongst YouTube viewers.