Consumer Packaged Goods (CPG) companies, often defined by their production and sale of everyday products such as food, beverages, personal care items, and household goods, face unique challenges when it comes to digital marketing. In a marketplace that is increasingly crowded and competitive, small CPG companies must leverage effective, cost-efficient, and creative strategies to stand out and gain traction.
The evolution of CPG digital marketing has reshaped the way CPG brands can interact with consumers. With tools ranging from social media advertising to email marketing, content creation, and data-driven insights, even small businesses can now compete with the giants of the industry. Digital marketing not only offers an unprecedented opportunity to connect with customers but also provides a means for small CPG companies to engage in personalized and targeted outreach, build brand loyalty, and grow their market share. In this op-ed, we’ll dive into how small CPG companies can utilize digital marketing effectively, using examples of brands that have done it well. We’ll look at the critical components of successful digital marketing strategies, from social media and influencer partnerships to content creation, paid ads, and email marketing.
The Changing Landscape of CPG Marketing
The CPG industry is being transformed by several key factors: consumer behavior is shifting toward online shopping, eCommerce platforms are becoming more popular, and traditional methods of marketing—such as television ads and print media—are becoming less effective, particularly for younger generations. In an environment where digital touchpoints are crucial, small CPG companies must learn how to navigate and utilize the tools at their disposal.
Consumers today are more connected and empowered than ever before. The power of information, product reviews, and social influence is not only felt but expected. They demand transparency, social responsibility, and authenticity from the brands they support. Small CPG brands, with their typically leaner operations and more flexible approaches, have a unique opportunity to capitalize on these shifts and engage consumers in a meaningful way.
Social Media Marketing: Connecting with the Right Audience
Social media platforms such as Instagram, Facebook, TikTok, and Twitter have become indispensable tools in the CPG marketing toolkit. These platforms are where consumers spend a significant portion of their time and offer CPG companies a way to reach audiences with highly targeted campaigns.
Instagram and Facebook Advertising: Building Brand Awareness
Small CPG companies can take advantage of the powerful targeting capabilities of social media platforms like Instagram and Facebook. With their robust ad management tools, businesses can create highly specific audience segments based on demographics, location, interests, and behavior. These ads can also be placed directly in front of people who have previously interacted with the brand, increasing the likelihood of conversion.
One excellent example of small CPG companies using Facebook and Instagram ads effectively is Dr. Squatch Soap Company, a natural soap and personal care brand. Dr. Squatch used Facebook and Instagram to target millennial men with ads that emphasized their product’s all-natural ingredients and eco-friendly approach. The brand’s humorous and quirky tone resonated with its target demographic, and its targeted approach through social media ads contributed to its rapid growth.
TikTok and Viral Campaigns: Capitalizing on Trend Culture
TikTok is another social platform that has become essential for small CPG companies looking to connect with a younger audience. The short-form video format allows for creative and authentic content that often feels less “advertised” and more like user-generated content. This can help small CPG brands appear more authentic and engaging, two qualities that resonate with today’s consumer.
A great example of a small CPG brand leveraging TikTok effectively is Hydrant, a hydration company that specializes in drink powders packed with electrolytes. They used TikTok to share quick, humorous videos, often featuring influencers or the brand’s founders themselves, highlighting the importance of staying hydrated in a fun and relatable way. By embracing TikTok’s playful and spontaneous culture, Hydrant successfully captured the attention of a younger, health-conscious audience.
Influencer Marketing: Leveraging Trust and Authenticity
Influencer marketing is one of the most powerful strategies in CPG digital marketing today, particularly for smallbrands. Collaborating with influencers—whether micro-influencers or well-known content creators—provides companies with the opportunity to tap into existing communities and build credibility through trusted voices. This is especially crucial in CPG marketing, where word-of-mouth recommendations can significantly influence consumer decisions.
Micro-Influencers: Maximizing ROI on a Budget
For small CPG companies, micro-influencers (those with between 1,000 and 100,000 followers) offer a cost-effective way to reach a highly engaged audience. These influencers tend to have a more loyal and personal connection with their followers, meaning that their endorsements can appear more authentic and relatable than those from larger influencers.
Take the example of Alo Yoga, a brand that sells athleisure and wellness products. While Alo Yoga has certainly grown into a bigger brand, their early success was due in part to their collaboration with micro-influencers who had niche followings in the wellness and yoga communities. By working with influencers who genuinely used and loved their products, Alo Yoga built a loyal customer base that helped the company expand rapidly.
Building Authentic Relationships with Influencers
Small CPG companies can create mutually beneficial relationships with influencers by offering free products, special discounts, or even sharing behind-the-scenes access to their brands. By allowing influencers to become a part of the brand’s journey, small businesses can forge a stronger connection with the influencers’ communities, increasing the potential for sales and brand loyalty.
An example of this is Sweetgreen, the healthy food chain that worked with a variety of lifestyle and wellness influencers. Sweetgreen’s collaborations with influencers weren’t just about promoting food—they focused on building relationships with influencers who genuinely aligned with the brand’s values, such as sustainability and healthy living. As a result, Sweetgreen became a recognized name among health-conscious eaters and grew its presence through trusted influencer endorsements.
Content Marketing: Telling Stories That Resonate
Content marketing plays a significant role in building long-term relationships with customers. For small CPGcompanies, content marketing allows them to educate their audience, share their brand’s story, and highlight their values. Through blogs, video content, podcasts, and newsletters, CPG brands can foster deeper connections with their target audience.
Storytelling: Creating Emotional Connections
Small CPG companies can use storytelling to humanize their brands and create an emotional connection with their consumers. For example, Bumble Bee Foods, a seafood company, created content around sustainability and the importance of ethical sourcing. They made an effort to inform their audience about how they were committed to sustainable fishing practices, highlighting the stories of the workers who made their products possible. This kind of content built trust with consumers and differentiated the brand from competitors.
Video Marketing: Leveraging YouTube and Other Platforms
Video marketing is another content strategy that works exceptionally well for small CPG companies, allowing them to showcase products in action and tell their brand’s story. For example, Glossier, a beauty brand that started as a small CPG company, used YouTube and Instagram video to share tutorials, product reviews, and behind-the-scenes looks at their product development process. Their videos not only demonstrated the effectiveness of their products but also built a sense of community and connection among their growing customer base.
Email Marketing: Nurturing Customer Relationships
Email marketing, despite the rise of social media, remains one of the most effective ways for small CPG brands to nurture customer relationships. With email marketing, companies can reach their existing customers directly and promote new products, exclusive deals, and content that keeps them engaged.
Personalization and Segmentation
Small CPG companies can use data to segment their customer base and send highly personalized email campaigns. For example, Sips by, a personalized tea subscription service, sends targeted emails to subscribers based on their tea preferences. The brand’s use of personalized recommendations encourages repeat purchases, as customers feel the service understands their tastes.
Promotional Offers and Loyalty Programs
Small CPG companies can also use email marketing to drive sales through promotions and loyalty programs. For instance, ThirdLove, a direct-to-consumer lingerie brand, uses email to send exclusive offers and updates to its loyal customers. The brand’s targeted email campaigns often include product recommendations based on previous purchases, special discount codes for subscribers, and information about new product launches.
Paid Digital Advertising: Maximizing Reach with Minimal Spend
For small CPG brands working with limited budgets, paid advertising offers a way to achieve significant reach with a modest investment. Platforms like Google Ads, Facebook Ads, and Instagram Ads offer small companiesan opportunity to place their brand in front of a highly targeted audience.
Retargeting and Remarketing
A particularly effective form of paid advertising for small CPG brands is retargeting. By using cookies and tracking user behavior, companies can retarget customers who have interacted with their website or social media profiles but have not yet made a purchase. For instance, Native (a natural deodorant company) effectively uses remarketing ads to target potential customers who have visited their site but abandoned their shopping cart. These ads appear across various digital platforms, reminding users of the products they left behind and encouraging them to complete their purchase.
Conclusion: Unlocking the Potential of Digital Marketing for Small CPG Brands
Small CPG companies have the opportunity to thrive in today’s digital-first world. With the right strategies, they can carve out a niche for themselves, build loyal customer bases, and expand their reach—often without the enormous budgets of larger companies. By utilizing social media, influencer marketing, content creation, email campaigns, and paid digital advertising, small CPG brands can develop marketing initiatives that are authentic, engaging, and, most importantly, effective.
The examples of brands like Dr. Squatch, Hydrant, Sweetgreen, Glossier, and ThirdLove highlight that successful digital marketing does not require a massive budget but rather the ability to tell a compelling story, connect with the right audience, and be agile enough to adapt to changing digital trends. As the landscape continues to evolve, small CPG companies that embrace innovation and prioritize digital engagement will be the ones that thrive in the future.
