How Brands Can Bridge the Digital-to-In-Store Divide
Experts predict that omnichannel retail media will account for almost 25% of U.S. advertising spending by 2028. With retail media network (RMN) advertising on the rise, consumer packaged goods brands are under pressure to increase their budget allocations to remain competitive.
Meanwhile, a significant challenge is emerging for those retailers and CPGs: adapting to shifting consumer behavior and effectively reaching omnichannel shoppers. Nearly 30% of consumers said they planned to do more of their grocery shopping online in 2024 than they did the previous year. Yet, data shows that even those who shop both online and in-store still make 83% of their transactions in person. Consequently, while brands have focused heavily on retail media and driving eCommerce sales in recent years, they have also needed to invest in touchpoints to drive in-store sales.
As consumers embrace an omnichannel approach to shopping that marries online and brick-and-mortar retail, brands must focus on building connections between digital on- and off-property and in-store touchpoints.
However, despite recognizing the importance of the omnichannel model, many CPGs compartmentalize their marketing strategies, siloing audiences and budgets between awareness, e-commerce, and in-store initiatives. What this approach fails to recognize is that a relatively small percentage of consumers shop exclusively online or in person. To successfully connect online and in-store experiences, marketers should consider the whole person — and the many ways they may engage with a brand.
It doesn’t matter if a shopper is a 34-year-old woman or a 78-year-old man. What does matter is that they choose to purchase a particular product. Placing rigid parameters around audience demographics can limit the impact of promotional strategies, preventing CPGs from creating a cohesive experience across multiple platforms. Rather than honing in on narrow target audiences, brands should concentrate on what drives purchase decisions and which consumers are planning to purchase from their category.
Advertisers frequently rely on a shopper’s purchase history to predict their future behavior. But past transactions don’t necessarily dictate whether — or when — a customer will buy the same item again. For instance, a consumer may have recently purchased a particular type of deodorant. That behavior might trigger a campaign to retarget the consumer for that product. However, if the customer only makes that purchase a few times a year, the brand will likely waste impressions by targeting them for their promotions.
By tapping into pre-shop data instead, CPGs can see what a consumer is thinking about or planning to buy and anticipate when they are primed to make a purchase. At AdAdapted, for example, we leverage digital shopping list applications to reach customers as they prepare to shop. This provides CPGs with invaluable insight into consumer purchasing intent, allowing them to deliver targeted promotions at the optimal moment in the customer journey and reduce wasted advertising spend.
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Shopping Lists and Recipes Close the Gap
As brands and retailers turn their attention back to the in-person shopping experience, we can expect an increased focus on activations that reach consumers in-store. However, the effectiveness of point-of-sale displays and in-store promotions is limited when customers arrive with a predetermined shopping list or recipe, as these factors may impact their willingness to add impulse items to their carts.
That is why it is critical for brands to understand and capitalize on pre-shop intent with shopping lists and recipes. By integrating targeted ads into popular shopping list applications — at precisely the right time when a customer is demonstrating intent — AdAdapted enables consumers to add promoted products to their lists, allowing brands to influence their purchase decisions before they even set foot in the store.
Additionally, integration with recipe and cooking websites and apps can be the difference maker. As customers use recipe websites and cooking apps to plan their next meals, presenting targeted advertising for products that fit those recipes not only creates a smooth and helpful experience for the shopper, but also bridges the digital to in-store action. With pre-shop planning, we can better understand what ingredients will be purchased by consumers, and when it’s just the right time to insert your brand not only into the mind, but also the lists, of those shoppers.
The brands that will pull ahead are those who understand the nuances of the pre-shop behavior and effectively connect with consumers before they enter the store. By leveraging tools like shopping list, recipe or cooking apps and websites to shape purchase decisions, brands can effectively bridge the gap between digital engagement and in-store conversion — ultimately positioning themselves to come out on top.
About the Author: Molly McFarland, co-founder and chief revenue officer of AdAdapted offers a unique perspective being a woman in the tech start-up world. A native of Maine and graduate of Tulane, McFarland began her career as a marketing professional and has since grown into an impressive, innovative and charismatic founder of a fast-growing advertising platform. She brings expertise in the mobile advertising environment, add-to-list solutions and extensive knowledge on how to reach consumers in an ever-changing ad space.