"The overall transition to digital has been slower in CPG than in other sectors," according to Nicolas Bureau, CPG research lead at L2. "However, Home Care brands are beginning to catch up by prioritizing digital distribution, and allocating their digital marketing budgets across the customer journey."
Key findings from L2's report include:
Third Party Retail Adoption: Eighty-five percent of Index brands outsource e-commerce to a third party platform, a year over year increase of 15 percent. Sixty-one percent of brands use features such as "shop now" and "buy now" buttons to send consumers directly to a third-party product page, up from 48 percent in 2015.
Slowing Social Scene: Social media adoption for Home Care brands was stagnant between 2015 and 2016. Index brands with Facebook accounts remained the same at 89% year over year, while adoption of YouTube fell 2 points from 84 to 82 percent. Index Home Care brands have been slow to adopt Instagram, climbing from just 34 percent in 2015 to 41 percent in 2016.
Investment in Web Advertising: Homecare Index brands saw a combined 50 percent increase in the total number of online impressions garnered in 2016 versus 2015. Desktop pre-roll video represented the largest share of all online impressions at 41 percent, an increase from 23 percent in 2015. S.C. Johnson's Glade earned top marks in web advertising with over two billion desktop, video, and mobile impressions combined over the same time.
Lagging Email Strategies: Only 27 percent of Index brands use email marketing, sending less than one email per week (0.16). Brands who do send emails personalize just 3 percent, achieving an average read rate of 8.7 percent. Conversely, star performer Blue Buffalo personalizes subject lines in more than 2/3 of the emails it sends, and earns an average read rate of 18.2 percent.
To access a complete media-only copy of L2's Digital IQ Index ®: Home Care 2017, contact email@example.com or 917-865-3038.
L2 benchmarks the digital performance of over 2,200 brands across 12 industries globally. Our proprietary Digital IQ Index® is the global standard for measuring digital competence. We analyze 1,250 data points across site & e-commerce, digital marketing, social media and mobile to provide brands with actionable, data driven insights on their digital performance. For more information, visit: http://www.l2inc.com.
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