Ketchup maker Heinz is taking a “digital first” approach and is transferring money from other segments to back its shift towards more innovation, Matt Hill, the company’s president for UK & Ireland operations, has said, as quoted by Marketing Magazine.
According to the report I came across this week, the company’s digital marketing budget is now double the amount allocated three years ago and currently accounts for 20% of its overall advertising spend compared with 3% in 2009. The brand is also channelling less funding towards promotions in order to spend more heavily on digital marketing, Hill told representatives of food brands and retailers at the annual IGD Convention.
In the last few years Heinz has embarked on a raft of digital marketing campaigns, in particular developing its brand on Facebook and launching an augmented-reality app trial for its Tomato Ketchup product in collaboration with reality technology specialist Blippar.
Heinz took a “rigorous test and learn” approach to identify the real benefits of digital marketing before giving increased importance to this type of advertising channel. This suggests that the brand will keep up its investment as long as it keeps seeing the benefits.
The purpose of investing in digital is not only about gaining as many fans as possible, but also stimulating communication, likeability and engagement, Hill said. Still, he considers that engagement with brands in the social media world is in its early stages and the field is yet to be fully explored.