The retail media industry is booming, making now the perfect time for CPGs and retailers to combine their respective expertise to drive mutual growth. Here are five considerations for CPGs to make the most of this dynamic duo.
Grow through collaboration
Today, most retailers offer invaluable insights into their shoppers, providing brands with a deeper understanding of customers, brand categories and overall business approach. These insights address critical questions, such as how customers shop in the retailer’s stores, how they engage with and stay loyal to specific brands, and how things like price sensitivity and lifestyle have changed over time.
Know the market
Retailer and brand insights are valuable, but using them exclusively will create an incomplete picture for your next retail media campaign. Market dynamics play a vital role in understanding the retailer’s performance relative to its key competitors. Sharing insights about whether a category decline is due to lapsed customers, changes in shopper behavior or emerging trends is essential. This collaborative approach between CPGs and retailers creates a holistic retail media strategy that better serves the customer.
Define and refine your audience
The audience should be the foundation of a campaign, influencing the creative, offering and delivery channels. CPGs should move beyond traditional demographics and partner with retailers to leverage in-store insights, digital engagement and attitudes to refine the target audience. Don’t just target competitors’ shoppers—look for opportunities that benefit both the category and the brands at the retailer.
Establish mutual goals
While the test-versus-control methodology is a well-known approach to understanding campaign performance in terms of sales, defining broader goals for the program is equally crucial. CPGs should work with retailers to agree on objectives beyond sales, such as impacting shopping trends, attracting new shoppers, increasing units purchased and influencing shopping trip frequency and channel preference. Aligning media campaigns with these goals ensures a strategic partnership focused on growing the category.
Embrace the power of speed
In an industry experiencing growth, speed is an asset. The retail media landscape, delivered through digital channels, allows for swift campaign delivery and performance reporting compared to traditional marketing tactics.
Retail media networks are ready to collaborate, test and learn—and brands should seize the opportunity.
