Elevate Your CPG Advertising Strategy in 2023

By Molly McFarland

co-founder and Chief Revenue Officer, AdAdapted

After a few tumultuous years, retail’s rough ride is far from over. Inflation continues to impact consumer loyalty and buying behavior, and customer engagement and retention are a top priority for CPG brands in 2023.


As John Furner, president and CEO, Walmart U.S., said in a keynote at NRF 2023: Retail’s Big Show, “Loyalty in retail is the absence of something better.” The challenge for retailers is to be the best choice for its customers and to deliver personalized, unique value every time a shopper interacts with their brand. As retailers set their ad strategies for 2023, there are three key trends that can help ensure success: creating personalized shopping experiences, delivering compelling video content and aiming for omnichannel excellence.

By implementing an advertising strategy focused on personalization, shoppable video and omnichannel messaging, CPG brands can thrive in a challenging grocery market. The key for CPG brands is to reach shoppers exactly where they are and when they are thinking about grocery shopping.

Create a Personalized Shopping Experience


Consumers now expect a more personal and customized shopping experience, with nearly half (49%) of consumers stating they will likely become repeat buyers after a personalized shopping experience. Brands that prioritize delivering personalized and relevant ads to their shoppers can align consumer preferences with promotions and targeted advertisements. Doing so provides a personalized experience using AI and customer targeting based on previous and current shopping list data. This type of relevant, contextual advertising helps build customer loyalty and increase sales.


For example, consider a shopper that regularly uses a mobile app to build a grocery list that includes ingredients for pasta recipes. This creates a great opportunity for a pasta brand to advertise its most relevant product to the shopper while using the app — meeting its customers where they are and providing direct value. In 2023, the CPGs that offer the most innovative and individualized personalization strategies will be the ones that stand out.


Invest in Video Content


Video content is another way for CPG brands to demonstrate how they offer value to the consumer. Since short form videos are easily digestible, consumers can engage with a brand’s videos without feeling like ads are being forced upon them. Over the past few years consumers have increased the video content they watch, with the average person spending 19-hours a week watching online video.


Additionally, new formats like shoppable video ads enable consumers to engage with brands in a meaningful way. Brands can move through the entire sales funnel with a single ad, going from brand awareness to intent to purchase.


Even though developing video content can be more time consuming and expensive, it can provide a positive ROI with 87% of marketers stating that implementing video content into their strategy increased sales. Creating easily consumable video content will help CPG brands to stay top of mind to the consumer.


Prioritize Omnichannel Shoppers


“As is true with other sections of retail: channel lines in grocery have blurred and an omnichannel approach is the only way to keep up with customers,” said Angelica Valentine, marketing consultant, Future of Commerce. Consumers shop from multiple angles, so it is critical to reach them where they spend their time thinking about shopping, both online and in-store, while also making sure your branded ads are effective, valuable, and actionable.


CPG brands also need to provide consistent messaging across all channels so they are able to retain loyal customers. This year it is important for brands to have the ability to reach shoppers exactly where they are and when they are thinking about grocery shopping.



Customer Loyalty Is Key to an Effective Advertising Strategy in 2023


As CPG brands continue to build out their advertising strategies, they must prioritize customer loyalty by offering personalized and relevant content. It continues to be a challenging climate in grocery, but by implementing an advertising strategy focused on personalization, shoppable video and omnichannel messaging, CPG brands can demonstrate that they are the best choice and thrive in an ever changing market.

The State of the GROCERY INDUSTRY 2023

FEB 2023