The holidays are upon us, closing out a year of soaring inflation and unpredictable market shifts. And there’s no doubt about it - consumers are feeling the pressure. According to the U.S. Bureau of Labor Statistics’ ‘food at home’ index, which reflects how much consumers pay for groceries, prices have increased 13.5% over the past year - directly reflecting the strain to be placed on consumers’ wallets this holiday season.
However, despite soaring prices, demand for ecommerce and delivery has never been higher, with Numerator finding that 82% of consumers plan to shop online this holiday season. As such, it has never been more important for grocers and CPG brands to reach customers in direct and personalized ways based on how they plan to shop, especially through channels like delivery marketplaces which meet customers where they are.
Knowing this, grocers and CPG brands alike can unlock a secret to holiday sales success: leveraging the power and impact of the right targeted CPG retail media network campaigns.
Why CPG retail media networks?
In recent years, the rise of ecommerce has helped the retail media ecosystem evolve and mature quickly by capitalizing on consumer buying trends. Compared to traditional media, retail media solutions empower retailers and CPG brands to own product categories, increase sales and optimize campaigns - all within an omnichannel environment. They also enable retailers to reach potential customers across a variety of touchpoints - ranging from in-app promotions to customized marketing emails - engaging consumers where they are most likely to convert.
This level of customization and personalization also allows retailers to take part in curated holiday moments that resonate with consumers in an authentic, meaningful way (think holiday promotions, which showcase classic ingredient bundles, bold seasonal pairings and gifting made easy). Both during the holidays and year-round, retail media solutions are a win-win for retailers and customers alike - enhancing the platform experience and providing value to customers through promotions and side-by-side merchandising.
Finding success through the right partnership
The digital advertising ecosystem - fueled by the possibilities enabled by retail media solutions - is robust. So while we know the benefits of engaging with retail media networks, how do you pick the right partner to drive sales and brand awareness? Here are three tips to keep in mind:
Co-creation and partnership are foundational to create a successful retail media program. As such, it’s critical you select a partner that knows your business and can customize campaigns accordingly. For example, at Shipt, our dedicated CPG team works closely with our partners to provide flexible ways to access Shipt inventory via simple “plug and play” ad opportunities, helping brands reach consumers directly within the Shipt shopping experience across a variety of ad solutions (including sponsored products, display advertising, promotions and more).
Visibility into campaign analytics is a must, allowing for incremental optimizations to best deliver on spend. Consider a partner who provides detailed, hands-on dashboards and analytics. Shipt provides its CPG partners with comprehensive dashboards and direct access to platform sales data, giving partners the ability to understand, manage and optimize their everyday business on Shipt.
Select a partner who invests in you to drive incremental growth – working hand-in-hand to understand your business goals, develop meaningful campaigns and leverage category insights to deliver on your goals. Unlike other retail media solutions, Shipt pairs its extensive retail media network with promotions for added impact, allowing CPG partners to achieve their goals alongside a single dedicated Shipt contact.
Amid a crowded, inflationary holiday shopping season, retail media solutions are a turnkey tactic to unlock success. When picking a partner, keep in mind that there’s no better indicator of future success than past results. During this year’s back-to-school season, a large CPG manufacturer leveraged Shipt’s CPG offering to drive sales lift for its snacking portfolio. Fueled by a full funnel approach, Shipt delivered a 21% sales lift, 6x return on ad spend and a 1.4% click through rate.
Covering 85% of the U.S. across 33,000 stores, Shipt is grounded in our people-first approach and bolstered by a focus on performance and partnership - a key differentiator which directly impacts the bottom line of our business and partners. This holiday season and beyond, grocery and CPG brands can position their business for success by using Shipt to maximize delivery services. Learn more about partnering with Shipt this holiday season.