Top 5 877x432 1 — Top 5 omnichannel marketing trends for 2023

Omnichannel marketing is evolving so here are my predictions on what the top 5 trends for 2023 will be within CPG that will dominate the grocery landscape.

1. Brands will increase focus on online grocery shopping

While in-store will remain the #1 channel for grocery shopping, many brands are starting to invest more dollars to build an online ecosystem to ensure they reach shoppers to drive pre-shop consideration and online sales conversion.

2. CPGs will expand emphasis on personalization to improve conversion rates

A recent research study from McKinsey & Company shows 71% of consumers expect personalization and 76% will switch brands if they don’t like their shopping experience. As a result, many brands are using customer data and insights to create targeted and personalized experiences and offers direct to consumer or in partnership with key grocery retailers.

3. Retailer Media Networks will continue to grow in popularity

In my recent blog “Omnichannel Marketing & the Growth of Retail Media Networks”, I wrote about how retailer media networks are gaining in popularity. How popular? According to a trends report from the Path to Purchase Institute (P2PI) a survey of 166 marketing executives, shows retailer media networks as the number one most important omnichannel tactic in 2022. This trend is only going top continue this year.

4. Shoppers will increasingly demand brands be more sustainable.

Sustainability is becoming a key factor in consumer purchasing decisions. Brands that demonstrate a commitment to sustainability are more likely to attract and retain loyal customers. This will include promoting sustainable production practices, reducing packaging waste, and offering eco-friendly products.

5. High grocery prices will continue driving more shoppers to buy private label products.

As Brian Ettkin at Numerator Canada stated in an article in Canadian Grocer Magazine in October 2022: “Canadian shoppers have become more reliant on private label in today’s high inflation environment and there is no sign that sales will slow”. I agree. Especially given that grocery prices will continue to rise in 2023 and the consumer perception of the quality of private label products is improving all the time.

What are your top 5 shopper marketing trends for 2023? I want to hear from other omnichannel marketers what is on your trends list.

Omnichannel Marketing & the Growth of Retail Media Networks

Leave a Comment / Shopper Marketing / By Aaron Richman / February 18, 2023

Retailer media networks are gaining in popularity according to a trends report from the Path to Purchase Institute (P2PI) in the USA. The survey, which includes insights from 166 marketing executives, shows retailer media networks was the number one most important omnichannel tactic in 2022.

In fact, the P2PI survey shows that investment in retailer media networks increased by 58% last year, more than any other omnichannel tactic.

Omnichannel Tactics Investment — #1 increase in omnichannel tactics spend is retailer media (Source: P2PI)

What are Retailer Media Networks?

Retailer media networks are digital platforms that allow retailers to sell advertising space to brands on their e-commerce websites and mobile apps, as well as on other digital channels such as social media and email marketing.

The growth of retailer media networks can be attributed to several things. First, the acceleration of E-commerce sales has led to more retailers investing in their online presence and looking for ways to monetize it. Second, it provides retailers with a new revenue stream by selling advertising space to brands. Finally, it allows brands to reach consumers in a more targeted and relevant way by leveraging retailers’ first-party data to deliver personalized ads to consumers who are most likely to be interested in their products. This can lead to higher conversion rates and a better return on investment for brands.

Retailer Media Networks Important Omnichannel Tactics in Canada Too

In Canada, the increasing popularity of retailer media networks mirrors that of the USA.

How popular?

Last week, I contacted Atedra, the media sales partner in Quebec for IGA, to inquire about a digital media plan for a CPG client. Last year, demand was increasing steadily, but typically marketers could plan a campaign 2-3 months out. Leap forward to today and demand is increasing so significantly brands need to start planning 9 months out.

While retailer media networks are gaining in popularity, here are two things to consider.

First, while marketing budget allocation is increasing, major media are still garnering the biggest slice of the advertising dollar pie.

Second, many large CPG clients I deal with find the cost of entry for retail media quite high. As a result, many are investing in retailer agnostic shopper media through vendors such as Flipp, ShopliftR, AdAdapted and Neptune Retail Solutions who can all target hyper-locally to reach category shoppers to drive purchase consideration and sales conversion.

I am curious what other marketers think about the growth in retailer media networks. Leave a message and share your thoughts. Plus. do not forget to check out the Path to Purchase Institute’s survey results on omnichannel marketing tactics here: https://tinyurl.com/rps4h7jm.

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February 2023

2023 Omnichannel Marketing Trends