Although 2020 turned out to be favourable for demand in the FMCG sector, it left its mark on the shopping journey. Manufacturers faced the challenge of redesigning their distribution and communication networks so that products would reach consumers whose shopping habits had been upended by the events of the previous year. FMCG companies had to turn towards new channels.

According to the report "Business Intelligence – FMCG Food and Drink"[1], over the next two years the growth in budgets allocated to advertising in the fast-moving consumer goods sector will be proportional to the growth of the entire market, but the way those funds are spent will change. By 2023, spending on advertising in digital channels will increase by as much as 7 percent annually!

No longer just television

Television is losing importance

Currently, the fast-moving consumer goods sector devotes as much as 60 percent more to television advertising than the average advertiser. The changes that have taken place in recent years, including the rapid growth of e-commerce and the shift towards digital technologies, mean that television – until now the most effective platform – has ceased to be the best channel for communicating with consumers. Its declining reach is clearly visible among the youngest consumers.

– The growth of e-commerce and the ongoing migration of audiences to digital media pose a considerable challenge for food brands. To maintain reach, brands need to verify their current activities, assess their effectiveness, take another look at their target groups and, as a result, balance the funds invested in promotion on television, in out-of-home and in digital channels – says Stephane Tikhomiroff, General Manager of Perfetti Van Melle Poland.

Digital investment in FMCG

The e-commerce branch deserves particular attention, as the pandemic proved to be a significant impulse for its development – according to experts, it will continue to grow in strength. Food brands will therefore naturally have to increase their advertising investment in order to actively support this process and achieve their goals. According to Zenith's forecasts, the percentage of budgets allocated to digital activities will reach 49 points, and companies will more readily invest in non-standard channels such as VOD or OTT, or active placement in SVOD, i.e. video on demand.

The new face of the internet

Twitch and influencers in action

Beyond the platforms mentioned above, the online space offers many more opportunities for creative use. A good example of a modern, out-of-the-box activity is the promotional campaign organised in March by Perfetti van Melle, "Mentos Sour Challenge". As part of it, the most popular streamers took part in a challenge in the game Among Us on the streaming platform Twitch. The event proved a great success, reaching almost 200,000 unique users of the service – the target group for products from the Mentos Sour range. This is not the only non-standard promotional campaign carried out by Perfetti Van Melle. The brand had already managed to reach young consumers by working with top influencers and running activities on platforms including YouTube, TikTok and Instagram.

FMCG trends in media: which channels are gaining

FMCG trends in media: which channels are gaining

Despite an unstable market, the goal remains constantly to reach the widest possible group of consumers potentially interested in the product. The key to success, as usual, turns out to be observation and, above all, actively responding to what an ever faster-changing world brings.

 

[1] zenithmedia.com/insights/business-intelligence-fmcg-food-…

Summary

The FMCG sector, despite a good 2020, must redesign its advertising strategies – television is losing importance, and digital spending will grow by 7 percent annually until 2023. VOD, OTT and SVOD are becoming key, as are non-standard activities such as the "Mentos Sour Challenge" campaign on Twitch, which reached 200,000 users.

The example of Perfetti Van Melle shows that food brands can effectively reach young consumers beyond television by using streaming and influencers. It is proof of the need to actively respond to changing habits and communication channels.