Procter & Gamble Co., one of the nation’s most enterprising digital marketers, is now probing ways to translate the millions of hits that its websites attract monthly into hundreds of millions in added sales.

The maker of Olay, Pampers, and Tide generates about $500 million in e-commerce now, less than 1 percent of its total sales of $79 billion. But the number has been quietly growing, and with the total e-commerce industry itself advancing in the double digits, P&G is forging ahead on several fronts, both through its own product websites and those of retailers.

It can be as basic as including a “shop now” option on a Pampers website that links to retailers from Wal-Mart to Drugstore.com. And it can be as dogged as tracking all emerging "e-tailers," while being well installed in those that offer the most promise for packaged goods. Either way, all efforts need to be spot on, since packaged goods is a relatively young area in e-commerce, a venue long trafficked for electronics, airline tickets, and books. But diapers?

Apparently, yes.

“I would say there are opportunities across virtually all of our categories to be successful in e-commerce because consumers are increasingly online and willing to add new categories of products to their online shopping list,” said Joe Quinn, P&G’s global e-commerce leader, in an email.

Room to Grow

P&G certainly has room to grow in the virtual store and the sway to help design the shelf space being created. Of the more than $4.8 billion P&G spent on U.S. advertising in 2008, an estimated $47 million, about 1 percent, went to Internet marketing, according to Advertising Age. P&G has declined to be specific on its e-commerce goals, but Quinn said its online sales have been growing in the double digits for the last several years.

That tracks with total e-commerce, which is expected to grow by 11 percent in 2009, to $156.1 billion, according to Forrester Research. By 2013, it is expected to advance an additional 47 percent, to $229 billion, accounting for 8 percent of all U.S. sales.

Comparatively, with just $500 million generated from e-commerce this year, P&G can afford a bigger presence, said Brian Walker, a senior analyst of e-commerce at Forrester.

“At under a percent of sales, it is underpenetrated,” he said. “I would say there’s a lot of potential for companies like Procter & Gamble to expand their online business.”

There are hindrances, since Cover Girl, Gillette, and other packaged goods—unlike books, running shoes, and furniture—are just establishing a foothold online. And for a reason. These are items readily available in most nearby stores and can be easily picked up with the groceries. Furthermore, some of the key selling points of P&G products—such as smell—can’t be translated to a website.

Keep It Simple

But as people increase their frequency of shopping, they are expanding the categories they browse to beauty and household goods, P&G said. The trick is to make the shopping disarmingly simple.

P&G 18 months ago introduced its “where to buy” options on its sites throughout North America. Such links take the consumer to an online retailer, or a menu of retailers, that have the product available. An added bonus: Shoppers can cost-compare right there.

This effort is now being expanded into Western Europe and other global regions.

Significantly for P&G, people who shop online are prone to doing research, and P&G provides a wealth of it through blogs, online communities, and literally hundreds of product websites. If the consumer is already on the Pampers Village website, what more would it take to get her to buy some Cruisers? The more seamless the link from review to purchase, the more heightened its chances for a sale.

Such seemingly simple additions as a “buy now” link require the partnership of retailers, and that’s where P&G’s size and influence are imperative. A recent example is the launch of Olay ProX. P&G introduced the product through a website that connected directly to participating retailers; it was concluded a success. But the effort required the coordination of those retailers.

Which is where all growth begins. In an August conference call, CEO Bob McDonald said P&G could boost sales “substantially” over the next few years.

“We see e-commerce as part of a broader effort to establish online connections with consumers that build our brands and our business with retail partners,” he said.

As for the retail options, the number is growing. Amazon.com, which sells P&G products, remains the largest online store, and eBay ranks high as well, according to Forrester’s Walker.

But, he said, the industry is seeing significant growth among multichannel retailers such as Target and Wal-Mart, P&G’s single-largest customer.

“They’re going to have a lot of retail partners who are expanding their online business,” Walker said. “P&G will look to take advantage of that.”

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Lisa Biank Fasig is a staff reporter for the Business Courier of Cincinnati.