If Mondelez is putting mobile first then why aren’t other FMCG brands?

Mondelez’s mobile deal with Google shows how seriously the company is taking the channel in its quest to drive impulse sales in-store. Other FMCG companies, however, are at risk of lagging behind the snacking giant when it comes to forging direct-to-consumer connections with smartphone users.

Seb Joseph

The high profile deal, the first of its kind for the snacking giant, spans 16 countries and includes search, display, analytics, geo-location and mobile-voucher type services. Mondelez execs are hoping the ambitious tie-up accelerates the mobile learning curve throughout the business as it steps up efforts to invest 10 per cent of its global marketing budget into the channel.

FMCG marketers have long preached the need for mobile-optimised strategies but too many have been reluctant to keep pace with shoppers. While many marketers look to mobile for brand campaigns, they expect to generate sales from click-throughs, registrations and special offers. None of these approaches, however, provide the holistic integration of mobile needed to drive more impulse purchases and better in-store marketing.

It is a trend that has not gone unnoticed by media owners. Speaking about the deal last week (31 May) Google’s VP of global sales Eileen Naughton hailed Mondelez as “one of the first to truly step up with a strategic global mobile deal of this reach and execution”.

The snacking giant predicts 67 per cent of the world’s population will have a mobile phone by 2016 while Google reports that 40 per cent of mobile searches have local intent. There is little doubt then, that the public’s usage of mobile is increasing and its appetite for mobile direct marketing is getting more tolerant.

At a time when consumers can be targeted anywhere through their mobile devices, data privacy concerns are a worry for marketers keen to avoid conjuring up nightmare images of Big Brother watching every move. But deals like Mondelez’s with Google will provide marketers with the understanding and confidence needed to dedicate a major percentage of their ad spend to the channel.

FMCG marketers are looking to precision targeting to ensure their brands remain remain top of mind and relevant to consumers. The recent forays by P&G, Kimberley Clark, et al into the e-commerce arena to gather insights on shopping habits reflect this. Those same brands should be watching Mondelez’s year-long deal with Google with interest if they are to fully figure out how to use the emerging channel to their benefit.

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