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As Facebook loses relevance with younger audiences, D2C ad budgets for CPG brands are diversifying into emerging channels.

CPG brands hike prices to pad their margins: Companies are leveraging data to minimize the share of consumers who trade down to less expensive options. (This article was written with the assistance of ChatGPT.)

What are 2023鈥檚 top retail media networks for CPG brands? From Amazon to Kroger, we share a selection from our in-depth report evaluating ad buyers鈥� perceptions of leading platforms.

Shoppers are beginning to trade back up to premium CPG brands: While volume growth is recovering at Unilever and Kimberly-Clark, pressure on lower-income consumers is hurting Nestl茅 and PepsiCo.

On today's podcast episode, in our "Retail Me This, Retail Me That" segment, we discuss how younger Gen Z consumers are most likely to discover grocery products, whether this new wave of celebrity-backed brands is different from previous ones, and what social media's role in all of this is. Then, for "Pop-Up Rankings," we rank the four elements a celebrity- or creator-led consumer packaged goods (CPG) brand needs to succeed. Join our analyst Sara Lebow as she hosts analysts Blake Droesch and Carina Perkins.

On today's episode, host Sara Lebow tees up a conversation between our principal analyst Andrew Lipsman and Jared Schrieber, co-founder and former CEO of InfoScout (now Numerator), to discuss the latter's new book, "Breakout Brands: Why Some Brands Take Off...and Others Don't." Lipsman and Schrieber discuss why brands like Rao's Specialty Foods, White Claw Hard Seltzer, BodyArmor, and Caulipower have seen some of the biggest market share increases in their respective categories, and the reasons for their success. Find out the marketing principles behind how consumer packaged goods (CPG) brands really grow, and why many of these drivers often go overlooked.

In a recent Tech Talk webinar, John Pawlowski, vice president of marketing at pet food company Heckova!, shared four steps to build a successful CPG brand and get it on to retail shelves, from identifying the opportunity for growth to finding the right retail partners.

Social media and TV are the top channels that consumer packaged goods (CPG) consumers use to find new products, but in-store still plays an important role in product discovery. Meanwhile, Amazon and Walmart are fighting to capture share of CPG product searches, though in-store consumers are more likely to turn to Google for help.

While social claims a sizable portion of most advertisers鈥� budgets, two advertising categories鈥攔etail and CPG鈥攁re responsible for an outsized share of social ad spending in the US.

Inflation is starting to ease, but consumers remain cautious with their spending. This puts pressure on consumer packaged goods (CPG) brands and retailers to attract customers without affecting the bottom line.

In 2024, retail media ad spend will grow 28.6%, coming to just under $60 billion, per our forecast. To reach that potential, retail media networks (RMNs) need to identify what attracts advertisers and set them up for success. Here鈥檚 how three consumer packaged goods (CPG) leaders are thinking about retail media.

As costs rise, consumer brands in retail, tech, and CPG may scale back marketing鈥攂ad news for platforms like Netflix, Disney+, and Roku, which increasingly depend on advertising. Content spending will tighten. With billions committed to live sports rights, media companies may further deprioritize scripted programming in favor of lower-cost unscripted content, putting creative innovation at risk.

Digital ad spending growth in Canada continues apace, driven in large part by key industries tied most closely to the digital economy. Our rankings show that retail and CPG lead the way, while sectors like travel and automotive are still recovering from hard times during the pandemic.

In addition, 45% of US consumer packaged goods (CPG) brand marketers think shoppable video content is the next frontier for retail media, according to October 2024 data from Path to Purchase Institute and TransUnion. RMNs are also expanding their shoppable inventory.

Deepening the challenge: RMNs that depend on investment from consumer packaged goods (CPG) advertisers will face headwinds in 2025, as the industry鈥檚 digital advertising spend is set to grow just 6.1% that year, per our forecast. That鈥檚 a stark slowdown from the double-digit growth that defined 2023 and 2024. In 2025, RMNs that make up the long tail of ad spending will face harsh realities.

Instacart launches new ad formats to help CPGs drive impulse purchases: The delivery platform will roll out shoppable recipes, occasions, and bundles to facilitate discovery and boost brand engagement.

Canada wasn鈥檛 far behind, at 13.59%, with energy, cars and trucks, and consumer goods comprising the bulk of imports. Besides the geopolitical fallout, the new tariffs will likely reignite inflation as companies look to pass on the higher costs of imports to consumers through price hikes.

CPG and retail are both core buyers of social media ads, in part to deflect the threat from new online challengers. The two industries will account for nearly 50% (29.9% by retail and 18.9% by CPG) of social ad spend this year. Retail has always spent heavily on social media, but heavy spending on social ads by Shein and Temu has driven the rest of the retail industry to spend more there as well.

Higher prices for hardware, consumer goods, and cloud servers could dampen customer purchasing power and enterprise tech investments.

In a recent meta analysis, Grocery TV discovered that consumer packaged goods (CPG) brands averaged a 14% increase in incremental sales when advertising through its in-store retail media network.

In a panel on how new consumer packaged goods brands can compete for shelf space and consumer attention, Fishwife co-founder and CEO Becca Millstein shared how she amplified a relatively small spend on a single billboard in Los Angeles by sharing it across Instagram, TikTok, and email: 鈥淚f you鈥檙e doing any marketing activation, make sure you鈥檙e squeezing the lemon completely.鈥�.

US CPG Industry Ad Spending 2024(蘑菇AV subscription required). Methodology: Data is from the Placer.ai report titled "Quarterly Retail Review: Q4 2024." Placer.ai analyzes 1.5+ billion monthly visitors across 20 million devices, 13+ million venues, thousands of segments, and 500+ mobile apps. Placer.ai is a location analytics and foot traffic data company.

Instacart expands offsite retail media capabilities with YouTube partnership: The retailer鈥檚 first-party data will power shoppable ads for CPG brands

Amazon Fresh, despite failing to gain traction with its brick-and-mortar endeavors, is trying to assert itself in the grocery space. Its customer base, though much smaller than competitors like Walmart and Target, is attractive to consumer packaged goods (CPG) advertisers because those shoppers are open to trying new products.