Data is the new bacon, says Kellogg, as digital ad spend matches that of TV

Sarah Homewood
By Sarah Homewood | 24 March 2015
Aaron Fetters, director insights and analytics solutions center at Kellogg Company

When it comes to marketing spend cereal and snack giant Kellogg is now spending just as much on its digital channels as it is on TV.

Aaron Fetters, director of KNA insights and analytics solutions centre for Kellogg Company US told AdNews that with so many parts that make up what is known as digital, the concept of referring to an arm of marketing as digital is almost redundant today.

“You know there’s mobile, there’s social, there’s native, there’s content, there’s video, there’s banners so all of that is digital in nature,” Fetters said.

“Television as we start to steward that through data there’s digital there, out of home can be digital - everything has a digital component to it now. Just from our traditional digital investment it’s at equivalent spend levels with television today - so from that stand point it’s there, the idea of something being just quote “digital” doesn’t hold the same meaning as it once did.”

Fetters explained however that digital is not primed to over take TV in terms of spend, rather the lines between what is digital and traditional will just continue to blur.

“I don’t think you’ll see an overtake,” he said. “The lines will just completely blur, when everything is digital then how do you say it was an overtake? “It’s still TV it’s just a digitally enabled TV buy, so I don’t know you see an overtake - you’ll just see the lines blur.”

When it comes to buying digital inventory, Fetters told AdNews that a majority of Kelloggs digital buy is programmatic.

“Digital display and video buys, the majority of it is programmatic, I say that from a US perspective but Australia is on the way for an investment in programmatic,” he said.

“That includes both open market and open exchange buys and private exchange closed market type buys with direct publisher, most of our buy is programmatic that doesn’t mean it’s all real-time bidding via an open exchange.”

Speaking at ADMA’s Data Day in Sydney this morning, Fetters said that data is like bacon, in the fact that it’s all the rage.

“Data is the new bacon -  there is literally an unhealthy obsession with data right now,” he said.

Fetters continued saying that marketing is at a tipping point and while the fundamentals haven’t changed, the environment in which the marketers work has.

“Fundamentals of marketing have not changed but the expectations and environment in which we compete in has.

“That environment has changed so much that we’re trying to remove digital marketing from our lexicon, because it’s no longer about digital marketing, but about marketing in a digital marketplace,” Fetters said.

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