News flash: advertising is going through a difficult time right now. While it won’t come as news to CPG marketers that the old ways of reaching customers aren’t cutting it anymore, there’s reasons to be positive. And it’s all to do good-ol’ dependable bricks-and-mortar stores. 

In our recent webinar with Bryan Gildenberg, of The CPG Guys, we broke down a few of the things shaking up retail advertising right now, as well as the benefits of retail media. 

And for retailers: we broke down what CPGs are looking for to put more of their marketing budget into in-store advertising. It all comes down to reimagining retail media feedback and insights.  

Interested in going deeper into retail media? Download our new retail media guide 

What’s up with retail advertising right now? 

1. Degradation of cookies 

It’s been happening for a while, but one of the primary challenges marketers face is the degradation of cookies. In 2024, as Google disables third-party cookies for all users, we’re really going to feel the impact. 

These once-ubiquitous tracking tools provided valuable insights into consumer behavior. However, those days of easily traceable, personalized data are over. As marketers, we have to adapt to this new reality by relying more on first-party data and innovative targeting strategies. 

2. Death of linear television 

Except for one particular day in February – when we all spend a week talking about 30-second ads during a football game – tradition linear television is experiencing a continued decline in effectiveness. Especially for CPG brands. 

As audiences shift to streaming platforms and on-demand content, reaching consumers through traditional TV ads has become increasingly challenging.  

3. Disruption in search 

In 2023 everyone went crazy for ChatGPT and generative AI in search. But that’s not the biggest issue in search right now.  

Instead, it’s platforms like TikTok and others that are reshaping how consumers discover products and services. And that means that CPG brands are having to rethink their advertising, especially when trying to reach younger generations. 

Why retail media is on the rise for CPGs?

If that’s the bad news for CPG brands…here’s the good. Retail media and in-store advertising might close the gap left by the decline of online and television advertising. It might even exceed both, as according to Reuters profit margins for retail media sales can be as high as 90%. 

Media company GroupM thinks that by 2028, ad sales for retail media networks will exceed those for television.  

So, what’s driving the surge in retail media? 

1. Stores are back (and probably never really went away) 

Despite the growth of ecommerce in retail, a vast majority of retail transactions occur offline rather than online. Consider the US’ biggest retailer, Walmart: in 2022, as its online visitors dipped, its in-store shoppers surged. In fact, the store says 88% of its customers go in-store. 

2. There’s a ton of in-store media assets ready to go 

Retail environments offer a wealth of opportunities for brands to engage with consumers through various media assets. From in-store displays to product placements, retailers and brands can seamlessly integrate marketing and commerce. Compare that to tiny ads on a busy website and you see why CPGs can get excited. 

3. It’s easier to measure the journey from discovery to purchase 

Retail media enables marketers to measure the effectiveness of their campaigns in real-time. Unlike traditional advertising channels where metrics can be elusive, the in-store environment can – with the right technology – give you immediate feedback on consumer engagement and purchasing behavior. This level of granularity allows for agile adjustments and optimization of marketing strategies. 

4. In-store advertising actually works! 

In-store activations such as displays and free samples have a tangible impact on consumer behavior. From our own research from 2023, 68% of consumers said in-store advertising was helpful in deciding what to buy. And when it came to what influenced them to try something new, free samples (40%) and in-store displays (47%) came out top, ahead of online advertisers, influencers, and in-store digital displays. 

What CPGs want from retail media networks? 

Bryan Gildenberg, in our recent webinar, described in-store advertisting as the “quantum physics” of marketing. Meaning that – if we understood Oppenheimer correctly – everything you know about the world of advertising is different in-store. The compacted, mysterious world of in-store shopping turns many preconceived ideas on their heads. 

Which is why, despite the appeal of retail media, CPGs aren’t ready to just throw money at retailers. They need to know the investment will translate into ROI. 

According to research from Boston Consulting Group, it really comes down to using innovative retail media feedback technology to gather the kind of insights CPGs want. 

If you can capture – in real-time – how your customers have experienced and been influenced by in-store advertising, you get a jump start on your rivals. And it’s possible now, especially with payment terminal feedback technology that helps you capture consumer sentiment at the point of purchase. 

Because if CPGs think you’re marking your own homework with your retail media network, it won’t last long. 

Take a deeper dive into retail media and what CPGs are looking for. Download our new retail media guide: