As recently published in Ad Age, the digital divide seems to be narrowing for Kellogg Co., which said its return on online investment for the Special K brand has surpassed that of broadcast TV over the past 18 months. Kellogg’s CMO described the company's findings as "obviously very encouraging," and predicted they would help "drive stronger adoption across the business."
Over the past year, Kellogg has been praised for sticking with its advertising spending despite the recession. The company has credited its brand-building efforts with its ability to pass some of the heavy commodity-cost increases onto the consumer. Kellogg crossed the $1 billion benchmark on ad spending during 2007, and its outlay is set to increase this year.
A Special K website offers customized plans for consumers, sign-ups for a Yahoo e-mail group, tips from a trainer and nutritionist and a point-of-purchase link to Amazon.com. The company has added a number of products to the Special K platform in recent years, including cereal bars, flavored waters and waffles.
"For the right opportunity, the online space offers fresh ways to commercialize new and existing brands, target specific audiences on needs more cost effectively," Kellogg’s CMO said. The initiative has not only resonated with consumers, but also boosted cereal consumption outside of breakfast.
The investment may continue to pay off, given the economic environment. UBS analysts anticipate cereal consumption to grow during the fourth quarter, not only because of food costs, but higher rates of unemployment. More people will be eating breakfast at home because they don't have anywhere else to go.
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