In an era of dynamic consumer preferences and economic uncertainty, the fast-moving consumer goods (FMCG) sector is evolving rapidly. To succeed in this evolving landscape, your brand needs to understand what motivates consumers today and what their perceptions and opinions are.

That’s why, as part of our most recent category focus, we’ve gathered research through our consumer research panel @TheLocal, YouGov and more to help explain changing consumer mindsets and how you can use OOH to break through, target the right audiences and drive sales.

Understanding customer mindsets 

Cost of living concerns: Value is at the forefront of the customer’s mind, with retailers like Aldi capitalising on this sentiment by opening 500 new stores in the UK. Reports show that 65% [1] of Brits have experienced a decrease in dispensable income over the past year, with groceries topping the list of products they are most price conscious about. Consequently, many people are changing their lifestyle habits, such as choosing to cook at home instead of dining out, in order to save money. This has contributed to the growing emphasis on value conscious purchasing when it comes to FMCG products.

Market saturation: There has been an increase in new product avenues for FMCG brands. Products such as milk alternatives have moved from a niche to an everyday item, as reports reveal that one third of Brits now drink plant-based milk.  As even these newer sectors are becoming saturated, brands must continue to find new ways to capture consumer attention effectively.

Changing advertising landscape: The traditional advertising landscape is undergoing a transformation. The FMCG Food and Drink report revealed that while 39% [2] of FMCG budgets were allocated to TV advertising, the average brand only spent 24% [2] on this channel. As consumer behaviour shifts towards alternative platforms, your brand can explore new avenues to connect with your audience.

Growing importance of trust: In a 2023 study by the Advertising Association, seven brand metrics were ranked in order of likelihood to drive large profit. They found that trust has gone from 7th place to 2nd place in the last 20 years. OOH is also one of the most trusted mediums, only shortly behind TV, cinema, and radio. As expected online – especially social, were at the lowest end.

Opportunities for brands 

Despite these developments, there are significant opportunities for FMCG brands to thrive in the current landscape. With 94% [1] of consumers actively seeking ways to save money, your brand can capitalise on this trend by offering affordable alternatives and leveraging price comparison tactics.

Having said that, it’s essential to remember that while consumers are price conscious, quality remains a top priority, with only 15% [1] willing to compromise on product quality.

For household names, maintaining brand visibility and consumer engagement is paramount. OOH advertising ensures that brands remain of mind for consumers, even in a saturated market. Additionally, with half of consumers actively seeking cheaper brands [1], there is room for new entrants to cut into the market with the right advertising strategy.

How OOH can help your FMCG brand 

FMCG brands are leveraging OOH advertising more than ever to enhance brand visibility, opting for premium large format and iconic locations like Piccadilly Lights in London. When combined with smaller screens, such as The Loop Network for targeted messaging, your brand can maximise the impact of OOH by catering to various stages of the consumer journey.

Full motion: Brand awareness is paramount to make your brand  front of the mind of consumers and OOH offers more impacts than any other medium. Furthermore, a large percentage of our screens are full motion, which our Neuroscience research found to be 2.5x more impactful than static OOH [3].

Iconic sites:  Make your brand campaign unforgettable with the likes of Piccadilly Lights, BFI IMAX, and Liverpool Media Wall, to name a few, with social amplification benefits that have been proven by Neuroscience. 

Ocean Labs: Add interactivity to your campaign for even more impact and social shareability. From simple QR codes to live streams, AR to experiential opportunities, the creative offerings are endless.

[1] Source: YouGov FMCG/CPG & Retail whitepaper 2023

[2] Source: Business Intelligence – FMCG Food and Drink 2023

[3] Source: Ocean Outdoor / Neuro Insight part 3: Appropriation & Amplification: A neuroscience view of full motion in DOOH, 2017.

Heinz, Piccadilly Lights

Wilkinson Sword @ The Pump Westfield

Coca-Cola, Chinatown Birmingham

Andrex (Kimberly-Clark), Piccadilly Lights

Magnum, Four Dials

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