WebProNews

Consumer packaged goods, aka CPG, have been attracting more purchases online by consumers, and brand manufacturers (and their ad budgets) have noticed. Expect to see more advertising for underarm deodorant and similar CPGs hitting the Internet over the coming year.

Ever desperate to follow the wandering eyes of an increasingly hard to reach consumer base, brand names are on the verge of spending much more money for online advertising in 2008. A report by eMarketer said that spending will finish around $920 million for 2007.

By the time 2011 rolls to a close, eMarketer predicts $1.81 billion in online ad spending by the CPG market. That represents a compound annual growth rate of nearly 21 percent.

Internet users perform plenty of product research online. Their willingness to buy CPG products online has changed, as Lisa Phillips, eMarketer senior analyst, said. "The CPG industry as a whole is suddenly bullish on the Internet."

Online ad spending by CPG companies reached $310 million in the first half 2006, finishing the year at $700 million. eMarketer had predicted $470 million for all of 2006 CPG Internet ad activity.

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