Google: Marketing Store Brands Online

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July 26, 2011

By Laura Heller

SBD Exclusive from the Innovation & Marketing Summit

There are perhaps few more important issues for retailers and store brands manufacturers than social media, mobile commerce and Internet marketing. All three were prominent themes during the Store Brands Decisions Innovation & Marketing Summit in Chicago, and no single presenter was more qualified to outline their importance than Catherine Roe, head of CPG at Google.

Catherine Roe of Google.

“The path to purchase has changed dramatically,” Roe told attendees. “Store brands aren’t super active in this space and it’s a huge opportunity.”

Shoppers are no longer making purchasing decisions at the shelf; most are searching online first, even for everyday items. “Eighty-one percent do this for an hour or more, before going to the store. The first reasons people go to a retailer’s site is to research, not buy, ” Roe said. Product reviews and user comments play an increasingly big role in buying decisions, and it can be detrimental to retailers that don’t offer these tools.

“Walmart gets 31 million unique views every month and this doubles over the holiday period,” Roe said. “And Walmart knows the consumer is more apt to go to the store and spend more money than if they hadn’t been on the site.”

But are store brands represented in online searches and media? In many cases, they are not, Roe said. CPG companies, however, are launching integrated campaigns using traditional media, social media and online advertising, often in partnership with specific retailers.

Edward Salzano of LiDestri Food & Beverage engages in the digital marketing conversation.

When Kraft launched Mio, a liquid flavor enhancer in March, it aired its first national television commercial during “Dancing With The Stars.” Immediately after the ad aired, Mio was at No. 15, according to Google Trends. Because consumers are turning to the Internet via computer, tablet or mobile device to research products -- even news items -- Kraft was ready. It had a Facebook page for Mio with an ad for Target on the right hand side of the page. So a highly visible traditional television ad, coupled with social media and search-supported ads, quickly led the consumer to access more product information and be directed to a specific retailer. This is the new path to purchase.

Roe pointed to Target as one retailer actively promoting its store brands -- Archer Farms and up & up -- with ads popping up on the right side of the page when appropriate key words or competitors’ brands are searched. Additionally, Target uses digital, printable coupons to further drive sales. Coupons searches are up 288 percent and, according to Google Insight, printable coupons are searched for more than anything else online, even beating out Lady Gaga and Justin Bieber.

Proving the growing importance of mobile marketing, Roe said approximately 20 percent of all searches on black Friday were from mobile devices. “If you have a site that’s not mobile friendly, you’re turning away customers,” Roe said. Online searches, regardless of the device used, are enabling consumers to make more decisions before even entering the store. “Start thinking about store brands and how they can play in this space,” she advised.

Or, consider the impact of no action: CPG companies are supporting searches with advertising and when they do, sales of private label products decline. “Private label benefits when search is dark, and declines when search is heavily supported [by CPGs],” said Roe. CPG brands are executing customized Internet campaigns with retailers. Store brands should, too, with their own banners.

SBD Views: Attendee reaction to the two Summit educational sessions on digital marketing and social media confirm the potential opportunity for store brands. We continue to believe that digital marketing and social media have the potential to be “the great equalizer” for store brands as a consumer marketing platform.-- John Failla for Store Brands Decisions

Read These Related Articles:

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• ShopRite Promotes Private Label Products With Online Game
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• Social Media to Expand Reach of the Innovation & Marketing Summit

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