CPGs need to drive topline growth, and targeted digital shopper marketing, while very efficient, doesn’t produce the case movement needed to raise topline sales. Over time, the high productivity of digital shopper marketing will win a greater share of CPG spending, but in the short term, they’ll find more success in this space from niche opportunities.
For food retailers who are used to “drafting” behind CPG marketing efforts, the generally low level of CPG enthusiasm/investment in digital shopper marketing can be confusing. Currently, only a few grocery retailers see what is happening and are using their own marketing dollars to fund highly-efficient digital shopper marketing, but retailers’ objectives are quite different than those of their suppliers. Over time, retailers and CPGs alike will realize that shifting more dollars to digital marketing vehicles makes business sense.
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