by Dave Sniadak
If you think you're seeing more online video ads for products like cereal and shampoo, your stomach and hair aren't playing tricks on you. A recent report from Videology says Consumer Package Goods (CPG) manufacturers spent nearly three times more (37%) than any other category during Q1 of 2012. This number grew 5% from last year year at this time; the next closest category was financial goods (12.5%), likely due to the influx of tax season spending.
Companies are starting to spend strategically outside the grocery bag (sorry, couldn't resist), too. Where the majority of online media buys leaned heavily on demographic data alone (74.7%), there was a steady uptick in behavioral data - geography (25.7%), retarget (41.4%), daypart (27.5%), and postal code (5.7%) - which accounted for an average of 23.2% of all spending.
What does this mean for online video? It means advertisers and their media partners are (finally) starting to utilize the vast amount of data being collected from consumers through social media and other online means to target the customers most likely to buy their products. Smarter media spends mean more precise, targeted ads filling up our banner ads. Look for more industries to follow the CPG lead as we advance through the remainder of 2012.