Invest to Impress

Perihan El Etreby
Copywriter at - M.A. in Creative Writing from Bath University
November 17, 2021
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Why CPG Brands are Moving More Marketing Budget to Retail Media Networks

“We now live in a world of ‘and,’ where we can have both broad reach and customized relevance, using new, granular, data-driven methods to fuel growth,” as one CPG executive said. Indeed, two-thirds of CPG companies claim that data-driven marketing is at the top of their priority list.

Marketers of consumer packaged goods (CPG) deal with a tough challenge: how to sustain above-average performance in the new normal. E-commerce penetration is still 35% higher than it was before COVID-19, and more than a third of respondents are still switching brands or shops. Nearly 80% of CEOs say they expect their marketing leaders to push the rise of revenue.

Unlocking Desires: AI consumer intelligence at its best

Want to successfully captivate consumers’ hearts and minds in a rapidly changing environment? Data-driven marketing at scale is your must-have tool nowadays. You can increase net sales value by 3 to 5% and marketing efficiency by 10 to 20%. To unlock this impact, McKinsey & Company gathered the five ingredients used by winning brands. 

According to Merkle’s survey of 100 marketers from key US brands in the retail and CPG industries, here are 4 valid reasons why 85% of CPGs are shifting more marketing budgets to retail media networks with the help of AI.

1. CPGs Breaking the Mould: how do retailers react?

The above statistics prove that retailers shouldn’t only focus on building a retail media network now but build one that gives a competitive advantage. As 43% of CPGs want innovation in ad solutions, retail media that exists only in the digital world doesn’t hold a competitive edge anymore. So, how can retailers smartly win CPGs in the retail media space today? Keep reading to know the answer.

2. Craving Data: why do CPGs partner with retailers for first-party data?

Hasn’t it been a dream of you, as a brand, to get closer to the point of purchase and have access to retailers’ valuable first-party data? Technology has made it all possible! With this data, you understand your customers better, and consequently, build a marketing strategy and advertising campaign that serve those insights. Retailers adopting technologies like smart digital signages that detect and target audiences in-store, in real-time, and display relevant ads accordingly have a unique offering that you desire. 

3. The Death of the Cookie: Why are marketers moving towards in-store advertising?

How can advertisers target their messaging in the online space with the privacy restrictions introduced? Big tech companies and web browsers have started to use alternative tools to gather consumer data instead of using third-party cookies. It’s expected by 2022 that all web browsers would stop the third-party gathering of data. For marketers, media buyers, agencies, and brands, this indicates that consumer insights will be harder to come by, making hyper-targeted campaigns even more difficult.

But as cookies are dying... in-store advertising strategies are born and shining

In-store advertising gives your brand the potential to reach the right consumers, at the right time, and the right place- in the last 20 yards, where they are most likely to spend. Attractive promotions, offers, and messages on displayed digital signages can convert visitors into purchasers.

4. Always Hungry for More Advanced Privileges: What CPGs are really looking for?

Wouldn’t you increase your budget if you received additional services from the retailer that would help you boost your sales and ROI? Things like in-depth reporting and self-service options that offer greater visibility into category benchmarks and insights are brands' weapons to gain a competitive advantage in the market. Brands are more motivated to partner with a retail media network to strengthen the relationship with their customers, offer them better shopping experiences, and deliver more personalized communications.


Because your brand matters and your customers matter, understanding your customers, personalizing their experience, and having an edge over competitors are crucial keys for your success. Get intouch now, and get introduced to the world's smartest media network solution. It’s time to join the tech revolution.

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