From inflation to supply chain issues, a confluence of complex economic, political, and social factors are impacting consumer habits today. We conducted a survey in partnership with YouGov to discover the impact of these factors on consumer discovery, consideration, and purchase of products in the consumer packaged goods (CPG) category.
Despite challenges, retail media is continuing to grow, giving CPG advertisers new opportunities to reach their customers and understand how their campaigns are driving sales outcomes.
- Retail spend will exceed $50 billion in 2023, increasing 26 percent year over year (versus 2022).*
- CPG digital ad spend is increasing year over year and will grow 22 percent from 2022 through 2024.**
CUSTOMERS ARE DISCOVERING NEW BRANDS PREDOMINANTLY IN STORES AND ACROSS CHANNELS
Consumers are discovering new products in different ways, depending on demographics and the product category.
- In store still remains CPG’s main touchpoint for customers to discover new products and brands.
- 18- to 34-year-olds are more likely to discover products from streaming and online than traditional TV ads.
To drive awareness and consideration of CPG products, brands should think about reaching their audiences earlier in the journey, across channels and devices.
PURCHASING IS HAPPENING BOTH ONLINE AND IN STORES
Most consumers are making purchases online as part of their buying journeys, whether that’s as often or more often than they’re buying in store.
Unsurprisingly, people are buying food items mostly in store. Meanwhile, they buy toys and entertainment products online more often than in store.
PUTTING IT ALL TOGETHER: HOW CPG BRANDS CAN STAY AHEAD
- Activate omnichannel media buys, reaching customers across devices and screens from connected TV to mobile, audio, and digital out-of-home. Then, manage frequency across all these channels to ensure you’re delivering the right message the right number of times.
- Activate retail data from leading retailers to either connect with consumers who have never bought from your brand before or promote a new product among your brand loyalists. You can even reach audiences based on online and in-store purchase behaviors and loyalty program data.
- Connect your omnichannel media buys to sales at some of the largest retailers, whether they happen online or in store, with closed-loop measurement. This will show you how your connected TV buy is driving people to purchase your products in stores.
- Optimize on the fly! In times of uncertainty, consumer habits will change. The audiences you successfully reached last month might have different needs today. Stay close to your audience data and use daily reporting to continue connecting with your customers where they are.
Want to learn more? Visit our site to dive deeper into the insights.
RESEARCH METHODOLOGY
The Trade Desk and YouGov did a study to understand the impact of economic factors — like inflation and supply chain issues — on consumer consideration and purchase of brands in the consumer packaged goods (CPG) category.
The survey was conducted in July 2022 and included 4,204 adult (aged 18 and up) respondents who currently live in the U.S. The data is weighted to reflect the U.S. population.
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* eMarketer, Retail Media Ad Spending Forecast 2022 (Insider Intelligence, 2022), https://www.insiderintelligenc....
** SMI.