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Independent retailers will have an avenue to offer advertising through their ecommerce marketplaces, thanks to a new partnership.
The news: The Independent Grocers Alliance (IGA) and Ideal are partnering to create a retail media network that will bring together data and advertising from thousands of stores on a new platform. While housed within the chain IGA, the network will be available at no cost to all independent retailers.
How it works:
Ad placements will be offered both on-platform and off-platform.
CPG ads are co-branded with stores. These attract shoppers to digital circulars, which in turn drives traffic to a store.
Target audiences can be chosen across multiple retailers,
Additional features include savings, informational videos, sweepstakes, recipes and nutritional tips. These are designed to lift grocery shopper engagement, store traffic, and sales.
Measurement and reporting will include in-store traffic, ROAS, basket size, category growth and more. Measurement will cover from the first impression to the in-store purchase.
Key quote from IGA CEO John Ross: “When brands go to invest their media dollars, there is no reason for independent retailers to be left out. Already IGA and Ideal have one of the largest media properties in the United States, and we have proven that brand and shopper marketing teams at big brands want to invest in our stores. The Ideal network takes it to a whole new level, combining the negotiating power of thousands more independents to challenge anything national grocery chains offer.”
What it says about marketplaces and advertising
Rise of retail media: The ability to offer advertising on ecommerce marketplaces is changing the equation for CPG brands and retailers alike. Retail media networks that allow brands to place ads on grocery marketplaces use first-party data collected at the purchase level. This is particularly valuable at a time when privacy moves like Apple’s App Tracking Transparency are limiting advertisers’ ability to attribute sales across platforms. It has led to a massive expansion on sites from Amazon and Walmart to grocers like Kroger. Learn more.
Going indie: Retail media benefits from a critical mass of shoppers. When there is more traffic, there is more data. Targeting is more effective and that leads to more potential sales. Indie retailers may not have the high traffic of the largest retailers. However, IGA’s move to pool resources allows these grocers to access a network that brings similar advantages to those enjoyed by the giants.
Trending in Brand News
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.