CPG Companies Devote More Of Their Ad Budgets To Digital As ROI Rises

Digital ad spending either has surpassed or soon will surpass magazines among CPG companies, according to a report on a recent executive conference. It has a ways to go before it eclipses No. 1 TV spending, though that may be nearer for many companies than one might expect. Procter & Gamble and Mondelez now spend about a quarter of their U.S. media budgets on digital and will spend even more if the ROI continues to improve. A Mondelez executive said the company wants at least half of its ad spend allocated to digital within two years because the ROI is twice that of other media. A P&G exec said the company is boosting digital ad spending to help decrease  the proportion of sales spent on advertising while maintaining effectiveness.