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Unilever and P&G search for young consumers in a pandemic By Reuters

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© Reuters. FILE PHOTO: Tide laundry detergent, a product distributed by Procter & Gamble, is pictured on sale at a Ralphs grocery store in Pasadena, California January 21, 2014. REUTERS/Mario Anzuoni

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By Richa Naidu

CHICAGO (Reuters) – Unilever (NYSE:) Plc  and Procter & Gamble (NYSE:), the world’s top two  advertisers, are seeking out younger audiences by reallocating some 2021 spending away from traditional TV and into video games, streaming services and media programs operated by retailers like Walmart (NYSE:) and Tesco (OTC:).

The company continues to evaluate their digital advertising budgets in an effort to reach younger consumers – which has been the case during the Nintendo Pandemic. You can switch (NYSE:) gaming consoles in front of Netflix’s (NASDAQ:), screens. The tie-ups between the two major consumer companies have led to popular services Hulu, HBO Max, as well as games like Fortnite or Animal Crossing.

Shoppers of all ages also avoided big box retailers’ stores and placed orders on online platforms. Global retail ecommerce revenues are projected to grow to $4.92 Trillion in 2021 following a global 25.7% growth in 2020 according to data firm eMarketer.

Unilever is “rethinking” how it spends its advertising budget as the prolonged pandemic has accelerated a shift in the way people shop and entertain themselves, Luis Di Como, Unilever’s executive vice president of global media, told Reuters. He said digital marketing at Unilever, which makes Ben & Jerry’s ice cream and Dove soap, now accounts for roughly 45% of its total media budget versus about 40% prior to the pandemic.

Di Como explained that Unilever offers monthly gaming master classes for its marketing team. It invites industry experts and professionals to stay in touch with consumers.

A representative of P&G, which makes Tide detergent and Gillette razors, said its “plans are evolving” to reach people “where they are – including in places like streaming and gaming.”

Elizabeth Marsten is a senior director of Tinuiti’s marketing data company Tinuiti. She said that it seemed a bit riskier. But, at the same moment, you can’t know what to do if you don’t try. It’s important to travel where people go, and the 20-year olds have no linear television.

277 MILLION GAMERS

Unilever has a total marketing budget of 7.5 billion euro ($8.85billion). Di Como declined to break out how much of that it spends on media, but  he said Unilever is shelling out “much more” on ecommerce advertising platforms in addition to gaming and streaming platforms.

We are investing in retailer media. Not only are there pure-players such as Amazon (NASDAQ:), but you also have omnichannel players like Walmart and Tesco. Target (NYSE: Carrefour Di Como stated that PA: are becoming media companies.”

Unilever has also launched new products in an effort to attract people who watch more movies and TV during lockdowns. In a nod to shoppers’ heavy use of streaming entertainment, for instance, Ben & Jerry’s launched an ice cream flavor called “Netflix and Chill’d,” a play on the popular millennial internet meme “Netflix and Chill.”

Late last year, Unilever’s Hellmann’s condiment brand tied up with Nintendo farming video game “Animal Crossing: New Horizon,” promising to donate to a food waste charity each time a player donated a virtual vegetable to charity within the game.

Newzoo data shows that more than 2 billion people are gamers in the world. The market size for video games will exceed $200 billion by 2023 according to Newzoo.

In  Britain, Unilever’s deodorant  brand Axe sponsors a handful of top gamers, including  Calfreezy.  In China, which contributes  about 6%  to overall sales, Di Como said the company backs e-sport celebrities  and leagues,  which are rapidly gaining popularity among the affluent younger generation in Asia. It sponsors a Dove Men + Care TV+ document on paternity leave by Apple (NASDAQ:).

P&G also has a tie-up with Animal Crossing through its Venus women’s razor brand. The company claimed that nearly one billion impressions were made when it added more skin types to in-game characters. This includes features like freckles or acne and hair scars.

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