CPGs Cultivate Winning Web Strategies: Study

Consumer packaged goods companies have evolved from being slow to embrace the Web to leading some of the more innovative Web sites and ad campaigns among traditional companies.

And consumers are taking notice. Just in the last year, ad impressions by food and beverage CPGs have jumped 91%, according to a recent study by Nielsen/NetRatings.

The top 10 food and beverage CPG sites reached 8.8 million unique visitors or 7% of the active Internet population during May 2003.

The various divisions with PepsiCo dominate the food and beverage advertising space. The four PepsiCo divisions listed in the top ten food and beverage sites delivered five times as many impressions than the previous year, the report found.

Kraft Foods slipped from the top food and beverage advertiser in May 2002 to number five in May 2003. However, impressions for Kraft Foods food and beverage advertising were up significantly year-over-year during the first quarter of 2003.

The top 10 consumer goods food and beverage sites ranked by impressions in May 2003 are:

1. PepsiCo, Inc., Pepsi-Cola Co. (373 million)

2. Cambell Soup Co. Biscuits & Confectionery (364 million)

3. PepsiCo, Inc. Frito-Lay, Inc. (212 million)

4. PepsiCo, Inc. The Quaker Oats Co. (154 million)

5. Altria Group, Inc. Kraft Foods, Inc. (79 million)

6. Mars, Inc. Snackfoods (43 million)

7. The Coca-Cola Co. North American Group (35 million)

8. PepsiCo, Inc. Tropicana Products, Inc. (34 million)

9. ConAgra Foods, Inc. Consumer Brands (18 million)

10. Nestlé USA, Inc. Chocolate/Confectionery (12 million)

Sweepstakes, games and cooking recipes lure surfers to CPG sites.

Topping the list by audience size is the destination site for Pepsi's billion dollar sweepstakes, which kicked off May 1, at 2.8 million unique visitors during its initial month. Kraftfoods.com ranked second with 2.4 million and Candystand.com landed third at 1.5 million. Among the top 10, five are owned by Kraft Foods (kraftfoods.com, candystand.com, nabiscoworld.com, postopia.com and gevalia.com).

The tremendous increase in advertising by food and beverage manufacturers speaks not only to the efficacy of online advertising, but also to a sluggish ad market where CPG giants can afford to experiment. As food and beverage manufacturers refine their techniques, expect to see online adverting becoming more central in integrated campaigns, according to Nielsen/NetRatings.