Does an increased investment in media boost CPG brand’s ROI?
What happens when CPG brands increase their investment in media?
Data from Keen Decision Systems found that an increase in investment by 18% over the last year resulted in an ROI improvement of 8%.
Comparatively, companies that invested in trade media by at least 12% saw their ROI drop by 1% and companies that increased their investment in consumer promotions by 23% saw no ROI improvement.
Social investments grew 30% year-over-year, with TikTok seeing the largest percentage growth (+136%), though spend is still less than 50% of Meta/Instagram. ROI also dropped 8%. Meanwhile, X is the only social channel seeing decreases in activity, dropping 43%.
Generation next: Capturing millennial, Gen Z shoppers
Additional insights include:
- Influencer investments grew 52% year-over-year, with ROI increasing 10%.
- Investment in Meta/Instagram is growing 23%.
- Investment in linear television was flat, but ROI improved (+12%), as brands prioritize efficiency over growth.
- Streaming video grew significantly at 23%, with YouTube seeing the biggest increase (+75%), followed by online video (+18%).
Overall, brands increased their total spend by +15%, and improved ROI by +4%
- Media saw the greatest ROI improvements, which makes sense as that's where brands focus their optimization and planning efforts
- Media (Inv/ROI): +16% / +8%
Top media buckets:
TV vs video
- TV investment flat, though ROI improving (brands focusing on TV execution over growth)
- DRTV and Syndicated only properties seeing sizeable decreases in spend
- Streaming Video increased significantly at +23% (ROI still improving by 5%)
Streaming video:
- OTT/CTV receives slightly more budget than Online Video (though YT and OLV growing at faster pace)
- All video channels improving in returns, though OTT/CTV outperforming OLV and YouTube
- Definitions
- OTT/CTV = Over the Top and Connected TV
- YouTube = Any YT property
- Online Video = Premium, Programmatic, Retail Media, all other online video
[Read more: Forecasting the future]
Social investments grow 30% YoY:
- Largest channel for investment growth YoY across portfolio of clients
- TikTok sees largest percentage growth YoY (+136%), though spend is still <50% of Meta/IG
- Influencer sees significant uptick in spend
- Twitter/X is the ONLY social channel seeing decreases in activity (-43%)