Retail Media Networks: A New Era for CPG Marketers
In the bustling world of consumer goods, the need for effective marketing has never been clearer. Retail media networks have gained tremendous traction recently, especially among companies like Georgia-Pacific, known for their household paper products. From toilet paper to paper towels, these brands have found themselves in the spotlight, adjusting their strategies to meet the demands of a rapidly changing marketplace.
Changing Times, Changing Habits
With the global pandemic shaking things up, many people’s shopping habits have shifted significantly. The rise of curbside pickup, home delivery options, and enhanced in-store fulfillment has made retail media networks all the more crucial for brands. According to Paras Shah, senior director of digital media at Georgia-Pacific, the pandemic gave a boost to retail media as retailers and marketers scrambled to meet consumer needs in real time.
Data-Driven Decisions
At the heart of this transformation is data. Thanks to changes in consumer behavior during the pandemic, there’s now a wealth of first-party data available. This data enables marketers to create highly targeted ads based on a consumer’s purchase history, browsing habits, and personal preferences. Shah noted that companies didn’t capitalize on this data pre-COVID like they do now.
Bringing Ads Where They Matter
Retail media networks provide a unique opportunity to place ads where they matter most—right in the shopping experience. From retail search ads to eye-catching in-store videos, marketing efforts have become more integrated and less disruptive. Consumers are reached at the moment they’re ready to buy, making it easier for brands to connect and engage them.
Frictionless Shopping Experiences
One of the game changers in this new landscape is the focus on frictionless shopping experiences. By incorporating off-site shoppable ads into platforms like YouTube and Instagram, marketers are now able to engage with consumers right when they’re most motivated to buy. This strategy has helped reduce obstacles in the purchasing process, enhancing convenience for buyers everywhere.
Optimizing Campaigns on the Fly
The ability to receive real-time insights on ad performance has become invaluable. Marketers can quickly adapt their strategies based on how shoppers react to their ads. This ability to pivot effectively means brands can continually improve their messaging and marketing efforts to resonate more with consumers, ultimately boosting campaign success.
The Importance of Contextual Relevance
To make a meaningful connection, it’s essential for marketers to use contextual relevance in their advertising. By delivering ads to curated sites and using demographic data to inform their strategies, brands can create tailored messaging that appeals to specific audiences. This approach allows marketers to align their ads with consumer needs based on household size and life stages, making marketing efforts more relatable.
The Challenge of Standardization
Despite the success, challenges remain. Shah emphasized that one of Georgia-Pacific’s ongoing pain points is how to measure the value of retail media. With numerous performance metrics and measurement frameworks, it can feel like comparing apples to oranges. The company has adopted an in-house approach to managing its programmatic media, search marketing, and social marketing. This move allows them to closely monitor performance while adapting campaigns quickly.
Flipping the Funnel
One interesting strategy that Georgia-Pacific has adopted is flipping the traditional marketing funnel. Instead of starting with awareness and working towards conversion, they begin at the bottom of the funnel, focusing on ready-to-buy consumers first. This innovative approach not only drives sales but also enhances market share effectively.
Final Thoughts for Marketers
Shah closes with a reminder for marketers entering the retail media space for the first time: ensure that your investments align with your objectives. There’s often a gap between what retail media networks offer and the brand’s specific goals. By being mindful of your goals, you can navigate this new landscape better and utilize retail media to drive significant results.
Through embracing data, creating frictionless shopping experiences, and focusing on targeted campaigns, CPG marketers can not only adapt to the current landscape but also thrive in it. As we continue to witness the evolution of retail media networks, one thing is clear: the future of marketing in the consumer goods space is bright and full of possibilities.
