Major Food Corporations Converting from TV to Digital

 

Call it a revolution or an evolution – the changes we’re seeing in marketing simply can’t be ignored. Marketers, SEO companies and enterprises across Los Angeles are seeing a major shift in the advertising industry. We are moving away from the traditional television, radio and magazine ads to digital venues. Before, we could have said this was a shift only seen in the small business sector. But today, we are seeing major corporations of all types transitioning over to digital as well.

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It’s why Los Angeles business owners are increasing their spend on SEO services and digital marketing. This is especially true for food giants like Mondelez International, which made a deal with Google in 2014 to increase its video advertising on YouTube. Other major companies are also shifting their marketing budgets to digital, such as Allstate insurance.

This shift could potentially take a $78 billion chunk out of the U.S. television ad market. Commercials are slowly becoming a dying breed as marketers turn to online video creators to produce buzz-worthy content. Mondelez said Google would employ top YouTube talent for the creation of their online videos as part of the deal, allowing for a cost-effective digital strategy.

Online video consumption is growing more and more every year. It’s going to be difficult keeping up with this high demand, but it does open up a major opportunity for many brands to try. It won’t be hard finding an SEO company in Los Angeles to help with this goal.

Mondelez is an international snacks business that emerged after Kraft Foods split in 2012. It has a variety of major brands under its belt, including Trident, Nabisco, Cadbury and Oreo, all of which are marketed in 165 countries. To top it off, the company reported earning$35 billion in 2013. That same year, Mondelez dished out $181.6 million on U.S. advertisements. Two-thirds of that went towards television ads. Only 5 percent of the ad spend went to digital marketing. In 2014, the company decided to increase digital spend to 10 percent (for online video).

Corporations in food and a variety of other industries are increasing their digital spend in an attempt to keep up with consumers. According to eMarketer, a research firm, the amount of time people are spending daily watching online videos rose from 6 minutes in 2010 to 55 minutes in 2014. There are nearly 195 million people in America who watch online video at least once per month. This number is expected to grow to over 212 million by 2018 (over half the American population).

It was projected that the digital ad spend would top $50 billion in 2014, which accounts for almost 30 percent of the total ad spend in America. Television still makes up 38 percent of the ad spend, but this won’t last for long. It’s predicted that digital ad spend will surpass traditional media by 2018. Google owns YouTube, which comprises almost 20 percent of the digital video ad market in America. In 2014, it earned $1.14 billion in revenue.

Consumer behavior is affecting companies large and small, from the east coast to the west coast. Major food corporations like Mondelez is only one of the many food industry businesses that are finding value in digital marketing. And it’s not just in online video. We are seeing food companies implementing social media and PPC ads as well. Any company that isn’t online is falling light years behind. SEO strategies should be a part of the marketing campaign for your Los Angeles food company. If it isn’t, then it’s time to consult with an SEO services provider in L.A.

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