Unilever’s recent commitment to allocate 50% of its advertising budget to social media marks a significant shift as legacy Consumer Packaged Goods (CPG) brands strive to connect with Generation Z. This investment reflects a broader transformation within the industry, as traditional brands seek to distance themselves from outdated marketing approaches and embrace social-first strategies.
### The Rise of Social-First Marketing in CPG
With the “TikTokification” of marketing now mainstream, CPG companies are increasingly adopting social-first models. Leading firms are diverting substantial portions of their ad expenditures—some investing up to 50%—to capitalize on the engaging power of social platforms. This shift is driven by the need to attract younger consumers who are shifting away from traditional media channels, such as linear TV.
Experts highlight that this pivot is crucial not only for capturing Gen Z’s attention but also for countering the influence of agile competitors that have mastered social media engagement. Nick Valenti, CEO of Mādin, notes that Gen Z actively seeks information through their social feeds, making platforms like TikTok integral to brand trust and identity formation.
### Strategic Investments and Acquisitions
In an effort to enhance their social strategies, brands like Unilever are also acquiring innovative companies that excel in social-first marketing. Recent acquisitions include Unilever’s $1.5 billion purchase of Dr. Squatch, a direct-to-consumer soap brand known for its viral marketing. Similarly, PepsiCo’s nearly $2 billion acquisition of Poppi highlights the trend of established brands seeking to streamline their marketing efforts to remain relevant.
### Navigating Challenges in Social Media
Despite the burgeoning interest in social-first marketing, legacy CPG brands face significant hurdles. Issues such as the inertia of traditional marketing practices, slow approval processes, and the need for a cultural shift within organizations can impede their ability to react swiftly to changing trends. For many, the transition from a linear TV-focused approach to dynamic social content demands agility and creativity that may run counter to their established practices.
### Conclusion: The Imperative for Change
As CPG giants like Unilever charge forward with their social-first initiatives, the industry’s landscape is transforming rapidly. The urgency for legacy brands to adapt is clear: As the methods of consumer engagement evolve, so too must the strategies employed by those who wish to thrive in the highly competitive market. For these companies, hesitating to embrace this transformation may present greater risks than adopting a bold, social-centric approach.
To succeed, CPG marketers must not only reallocate resources but also embrace creative risk-taking and collaborate closely with agencies to forge authentic connections with the next generation of consumers.
