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US CPG Digital Ad Spending 2020

Essential Goods and Personal Care Products Drive Growth During Pandemic

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About This Report
The CPG industry will increase its investments in digital advertising this year as strong sales of essential goods and personal care products—particularly on ecommerce platforms—gave advertisers reasons to keep spending during the pandemic.
Table of Contents

Executive Summary

Digital ad spending in the US consumer packaged goods (CPG) industry will increase 5.2% to $19.40 billion this year, making it the third-largest spender behind retail and financial services. CPG advertisers spend heavily on mobile, and the most popular format is display advertising on social networks and video platforms. Competition with direct-to-consumer (D2C) brands, along with an uptick in ecommerce sales, has led to a higher focus on performance marketing; however, brand marketing remains essential.

What’s driving overall CPG ad spending growth?

A boost in digital sales of essential goods and personal care products, which were purchased more frequently online during the pandemic, has driven CPG spend growth.

How much of CPG advertising is going to mobile?

Mobile spending will grow 11.4% to $14.20 billion, accounting for 73.2% of all CPG digital ad spend.

Which ad format is growing the fastest?

Digital video, which we consider a subset of digital display, will be the fastest-growing ad format in CPG ad spending this year, rising 17.1% to $5.54 billion. Digital video ad spending will make up 47.5% of CPG’s spending on display advertising and 28.6% of its overall digital spend.

What is CPG’s share of total US digital ad spending?

CPG ad spending will make up 14.4% of all US digital ad spending, making it the third-largest spender among industries we cover.

WHAT’S IN THIS REPORT? This report details our annual forecast of US CPG digital ad spending. It includes a comprehensive overview of total digital ad spending, as well as estimates by channel, device and format and the pandemic’s impact on these figures.

KEY STAT: Digital ad spending in the US CPG industry will grow 5.2% this year to $19.40 billion.

Here’s what’s in the full report

3files

Exportable files for easy reading, analysis and sharing.

6charts

Reliable data in simple displays for presentations and quick decision making.

21expert perspectives

Insights from industry and company leaders.

Table of Contents

  1. Executive Summary
  2. CPG Ad Spending Overview
  3. Digital Ad Spending by Device
  1. Digital Ad Spending by Format
  2. Key Takeaways
  3. Insider Intelligence Interviews
  1. Read Next
  2. Sources
  3. Media Gallery

Interviewed for This Report

Dave Antonelli
Dish Media
Director, Sling TV
Interviewed June 12, 2020
Arsen Avakian
Cooler Screens
Co-Founder and CEO
Interviewed June 17, 2020
Danielle Cravatt
VDX.tv
Senior Vice President, Client Partnerships
Interviewed June 8, 2020
Klarn DePalma
MNI Targeted Media
Executive Vice President
Interviewed June 3, 2020
Stephani Estes
Cramer-Krasselt
Senior Vice President and Executive Director, Media
Interviewed June 8, 2020
Doug Grumet
AMP Agency
Senior Vice President, Media
Interviewed June 9, 2020
Kunal Gupta
Polar
CEO
Interviewed June 4, 2020
Cheryl Huckabay
The Richards Group
Managing Principal, Media
Interviewed June 15, 2020
Jennifer Kohl
VMLY&R
Senior Vice President and Director, Integrated Media
Interviewed June 10, 2020
Todd Krizelman
MediaRadar
Founder and CEO
Interviewed June 4, 2020
James Malins
Amobee
General Manager, Cross-Channel Strategic Solutions
Interviewed June 25, 2020
Japhia Mangan
Adlucent
Senior Account Director
Interviewed June 12, 2020
Mike Menkes
Analytic Partners
Senior Vice President
Interviewed June 9, 2020
Jon Morgenstern
VaynerMedia
Senior Vice President and Head of Investment
Interviewed June 18, 2020
Frost Prioleau
Simpli.fi
CEO
Interviewed June 3, 2020
Jon Schulz
Viant Technology
CMO
Interviewed June 10, 2020
Scott Symonds
AKQA Media
Managing Partner
Interviewed June 16, 2020
Jeremy Tate
DWA, a Merkle Company
Senior Vice President and General Manager
Interviewed June 4, 2020
Vanessa Vignon
Ubisoft Entertainment
President of Audience, Acquisition and Management
Interviewed June 23, 2020
April Weeks
Centro
Executive Vice President, Media Services and Operations
Interviewed June 15, 2020
Brian Wieser
GroupM
Global President, Business Intelligence
Interviewed June 26, 2020

authors

Blake Droesch

Contributors

Oscar Orozco
Director, Forecasting
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