By John Hennessy
New York research firm eMarketer expects packaged-goods firms to spend $470 million online in 2006. This would be a 17 percent increase from 2005 and a 42 percent increase over 2004 spending.
Rather than web media buys, eMarketer believes investing in sites will help brands like Kimberly-Clark's Huggies Baby Network and Procter & Gamble's Tide Fabric Care Network build relationships online. It's also a way to capture consumer information.
"They're putting a lot of their money into the back-end stuff, especially building sites," said Lisa Phillips, an eMarketer analyst.
Moderator's Comment: What are companies in retailing and related businesses doing online to address the information needs of consumers?
I just adopted a new, large dog. How much and what do I feed it?
What are trans fats?
What's the glycemic index and how does knowing about it help me?
Why should I consider natural and organic products?
How do I read nutritional information on a label?
Through partners and third party content providers, a lot of this information can be customized for a host retailer and made available to shoppers. Availability of this information on a retailer site will encourage shoppers to rely more on that retailer over their competitors.
I don't live anywhere near a Wegmans but enjoy the informative emails featuring articles by Mary Ellen Burris. The Wegmans site is also a good resource with lots of information. - John Hennessy - Moderator