Marketing
05 January 2023
Facebook, Instagram add campaign measurement tools for CPGs
IRI and Meta are partnering to measure social advertising's impact on in-store sales.
Photo by Dima Solomin on Unsplash
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How effective are social media advertisements at generating sales at grocery stores? That’s the question a new tool being added to Facebook and Instagram is looking to help answer for CPG brands.
Meta and IRI are partnering to provide brands with results that connect in-store sales and shopper marketing campaigns conducted on social media.
It means that marketers on Meta-owned Facebook and Instagram will have access to brand and product-level sales results for shopper marketing campaigns. This will be provided in the form of automated campaign measurement from a SaaS platform powered by IRI.
The platform, called Ansa, provides proprietary analytics on campaigns for specific products or retailers across hundreds of manufacturers and US retailers. It also provides hyper-local targeting recommendations and optimization, as well as analysis of a campaign’s sales lift based on the results of test media that is run in certain locations.
"Measuring the incremental omnichannel sales impact of retailer-specific social media investments has long been a challenge in the industry," said Stephanie Pegler, ecommerce marketing director at PepsiCo, in a statement announcing the partnership. "The measurement partnership between Meta and IRI enables PepsiCo to understand how its retailer-specific Meta campaigns drive omnichannel sales. This is critically important for informing how to most effectively plan and optimize Meta buys as part of our media mix."
It underscores a key consideration for brands seeking to understand results and make decisions about their investments:
What was the incremental increase in sales during a campaign, when compared to the sales that would’ve taken place during that time period without a campaign? In other words, how effective was a campaign run in one place at delivering sales in another?
These are age-old questions in marketing, but the internet’s ability to provide real campaign metrics and advances in computing power that executes complex analysis quickly are making the answer more measurable. At the same time, brands are showing up in more channels. This is just one example of a tool that is helping brands understand the full picture of how these activities impact each other, and what is driving results.
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Marketing
09 June 2023
'There's a lot of ways to frame value'
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
Photo by Kelly Common on Unsplash
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.
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