Innovative Online Food and Drinks Marketing: Building brand and customer relationships online

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Innovative Online Food and Drinks Marketing: Building brand and
customer relationships online
Published on May 2009

Report Summary

Innovative Online Food and Drinks Marketing
Building brand and customer relationships online

Report Overview...

In Europe and North America there has been a huge increase in the amount of time spent online, propelling the internet to second
place in terms of media consumption, second only to the television. Online advertising is increasingly being used by food and drinks
companies to build relationships with their consumers that are not merely based on products. The internet also provides a variety of
innovative ways in which to sustain those relationships over time.

Food and drinks companies are increasingly adopting rich media ads and contextual, in-text and in-game advertising all of which are
helping to produce more targeted, interactive content for users. As consumers move on to Web 2.0 and increase their use of
social-networking and sharing sites, food and drinks companies need to understand how to utilize these applications to target their
audience effectively.

Innovative Online Food and Drinks Marketing: Building brand and customer relationships online' is a new report published by
Business Insights that provides insight into online marketing strategies. This report analyzes consumer and manufacturer drivers and
NPD in the key markets of Europe, Japan and the US.

Key Findings...

Internet penetration is highest amongst teenagers but Internet usage (in terms of hours spent online) peaks amongst the middle aged.
Differences between the genders are disappearing as women catch up with men.

The number of hours that people spend consuming media, including online, is rising. Online is the fastest-growing medium and is now
second only to TV in terms of timespend.

There are almost 0.6 billion Internet users in the developed world and almost one billion users in emerging markets. That's 72% of the
population of the former and 20% of the latter.

Expenditure on online advertising in Western Europe and North America reached $35bn in 2008. This figure is expected to continue
growing strongly during the recession.

Use this report to...

' Gain insight into the current and future online advertising technologies and analyze the advantages and disadvantages of different

Innovative Online Food and Drinks Marketing: Building brand and customer relationships online Page 1/7


types of online advertising for use in the food and drinks industry.

' Examine the many online advertising opportunities and gain insight into the number of users and their usage rates, as well as the
growth and segmentation of the online marketing sector.

' Discover how to build long term customer relationships with this report's analysis of trade press, industry blogs, entrants to online
advertising competitions and ad agency portfolios.

' Identify key trends that are shaping the online food and drinks market and how this might impact on future online marketing
campaigns.

Key issues...

User-generated content. Food and Drinks brands are utilizing this low cost creativity by encouraging users to co-create and promote
advertisements as well as new products and packaging designs.

Personalization. Companies can target particular consumer groups by personalizing display ads and using sites popular with the
specific target group.

Social networking. The growth of social networking is particularly widespread amongst the younger age groups. Food and drinks
companies are capitalizing on the growth of this trend by advertising on sites such as facebook.

Instant Messaging (IM). Instant messaging is beginning to replace email for a number of consumers to become the top online activity.
Whilst difficult to execute IM marketing can be beneficial for companies investing in this media.

Your questions answered...

' What are the latest types of display ad to be used by food and drink companies'

' Which market is most geared towards winning and maintaining customer loyalty online'

' How have food and drink companies turned advergames into a marketing technique that appeals to both adults and children'

' What proportion of visitors to food and drink company websites arrive via a search engine'

' Which form of new media marketing has the greatest potential reach'

' How can food and drinks manufacturers position their products to capitalize on the key areas of growth in online marketing'

Table of Content



TABLE OF CONTENTS

Executive Summary 10
Consumers online 10
Corporate and brand websites 11
Search & display 12
Marketing on Web 2.0 13
Chapter 1 Consumers online 16
Summary 16
Introduction 17
Rising media consumption 17
The growth of time spent online 18
Internet penetration 20
Internet usage 23
Online demographics 26
Changing online behavior 29
Online marketing expenditure 31
Online advertising segments 32
Advantages of online advertising 33
Online marketing for consumer packaged goods 34
Conclusions 35
Chapter 2 Corporate and brand websites 38
Summary 38
Corporate websites 39
Brand destination sites 41
Advergames 42
Entertainment-based websites 44
Edu-taining websites 48
Audio and video 48
Quizzes 48
Tips 49
Interactivity 49
Online customer loyalty programs 50
eCommerce sites 52
Online couponing 54
Conclusions 55
Chapter 3 Search & display 58
Summary 58
Search engine marketing 59
Display advertising 61
In-text advertising 65
In-game advertising 66
Pre-roll ads 68
Mobile marketing 69
Conclusions 74
Chapter 4 Marketing on Web 2.0 76
Summary 76
Social network marketing 77



Profile of users 78
Types of advertising 80
Applications 82
Niche networks 85
Brand opportunities 86
Instant message marketing 87
Marketing with user-generated content 90
Online video 90
Blogging 92
Co-creation 94
Conclusions 95
Chapter 5 Conclusions 98
Summary 98
Targeted and personalized 98
Engaging and enriching 99
Creative and analytical 101
Chapter 6 Appendix 104
Glossary of terms 104
Index 108

List of Figures

Figure 1.1: Hours spent online by country, 2007 19
Figure 1.2: Number of Internet users in selected developed countries, 2008 21
Figure 1.3: Number of Internet users in top 15 emerging markets, 2008 22
Figure 1.4: Internet penetration and usage by country, 2007 25
Figure 1.5: US Internet penetration by age group, 2005-08 27
Figure 1.6: Niche food sites Delish and HowTV 31
Figure 1.7: European online advertising expenditure, 2005-06 31
Figure 2.8: Motivations for visiting FMCG websites in the US, 2007 40
Figure 2.9: Website for Coca-Cola Great Britain's Let's Get Together 40
Figure 2.10: Top 10 food and drink company websites in the US, Q3 2007 41
Figure 2.11: Website for M&M's Joint the Hunt 42
Figure 2.12: Website for ICBINB's Now You Know Better 44
Figure 2.13: Website for Beck's Live Studio 45
Figure 2.14: Unilever's Sprays in the City & Spraychel webisodes 46
Figure 2.15: Lacta's Love at First Site webisodes 47
Figure 2.16: Website for Budweiser's Bud.tv 47
Figure 2.17: Website for Knorr's Beat the 3pm Slump 49
Figure 2.18: Loyalty site for My Coke Rewards 51
Figure 2.19: Loyalty site for Bud Bucks 52
Figure 2.20: ecommerce site for M&Ms 53
Figure 2.21: eCommerce site for Heineken's Jouw 53
Figure 3.22: Searchers vs non-searchers visiting FMCG websites in the US, 2007 60
Figure 3.23: Banner ad for Coors Light Happy Hour 62
Figure 3.24: Coca-Cola's Coke Bubbles widget 64
Figure 3.25: In-text advertising for Kraft's Oreo brand 66
Figure 3.26: CC Metro virtual world advertising 68



Figure 3.27: Sprite's The Yard mobile website 71
Figure 3.28: Hill's Pet Nutrition location-based marketing 72
Figure 3.29: Coca-Cola's Spin the Coke app 73
Figure 4.30: Penetration of social networking sites by age, US 79
Figure 4.31: PG Tips' Monkey fanpage on MySpace 81
Figure 4.32: Coca-Cola's Fanta Mug Mash Up application 84
Figure 4.33: BakeSpace, an example of a niche social networking site 86
Figure 4.34: Pepperidge Farm's Art of the Cookie website 87
Figure 4.35: Coca-Cola's MSN Messenger advergame 89
Figure 4.36: SABMiller's travel blog 93

List of Tables
Table 1.1: Hours spent online by country, 2007 20
Table 1.2: Number of Internet users in selected developed countries , 2008 21
Table 1.3: Number of Internet users in emerging regions, 2008 22
Table 1.4: Number of Internet users in top 15 emerging markets, 2008 23
Table 1.5: Internet penetration and usage by country, 2007 24
Table 1.6: Internet usage and page views by country, 2007 25
Table 1.7: Number of broadband subscribers by country, 2002-2012 26
Table 1.8: US Internet usage by age group, 2008 28
Table 1.9: European online advertising expenditure, 2005-06 32
Table 1.10: US online advertising segments, 2007-08 33



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