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[21Key Insights] How Brands Can Reach the New Grocery Consumer?

How Brands Can Reach The New Grocery Consumer?

To help grocery marketers and advertisers navigate this complicated new territory, Amazon Ads and studioID recently surveyed 250 grocery executives to hear their insights on staying competitive in an omnichannel world.

Here are the 21 key insights/findings and stats from Amazon Ads & Grocery Dive’s 12 page ‘How Brands Can Reach the New Grocery Consumer?’ Report, which may assist grocery marketers and advertisers in engaging with target audiences and generate sales or revenue, including building a healthy relationship environment and serving consumer or customer needs:

  1. The Food Industry Association’s 2021 U.S. Grocery Shopper Trends Report revealed an increase in online shopping among all demographics. Fifty-two percent of shoppers surveyed in 2020 said they’d bought groceries online, but that percentage grew to 64% in 2021.

  2. There was also a significant spike in demand for buy online, pick up in store (BOPIS) and delivery services.

  3. “In today’s world, all the old models from prior to 2020 don’t apply anymore,” said Steve Truxal, Director, Physical Stores, Amazon Ads. “Grocery advertisers need to meet shoppers wherever they like to shop — and, ideally, as close to the purchasing decision as possible. Figuring how to reach this audience is the first big challenge. The second is measuring how well advertising is working across these complex purchasing journeys.”

  4. Consumers are more willing to experiment, and in some cases are less price-sensitive than before. According to Acosta research, 45% of consumers increased their use of online grocery ordering and subscription services during the pandemic. With today’s consumers more digitally engaged and more willing to experiment, it’s imperative for grocery advertisers to expand their reach.

  5. In the survey, 42% of executives chose “new emerging formats” as their main investment priority, which means that a majority may still be missing out on the digital shift to emerging formats such as streaming TV ads.

  6. “Brands need to truly pay attention to find out where their customers are discovering new products, browsing and making purchases,” added Srishti Gupta, Director, Media Measurement at Amazon Ads.

  7. “One-third of grocery shoppers no longer pay for cable TV, according to an October 2020 Kantar study. To stay top of mind and continue growing, brands need to go where their customers are and lean into new formats, such as audio and streaming TV advertising. They need to find the media mix that will help encourage customer loyalty.”

  8. The demographics of online shopping have changed, with all generations seeking the ease and convenience it brings.

  9. According to the Amazon Ads/studioID survey, nearly two-thirds of the grocery executives surveyed (64%) said that social media advertising would be their main investment priority for the next 18 months, which means they may be missing other opportunities to reach multigenerational audiences.

  10. Grocery brands can leverage important shopping signals to shape the shopping experience. In-store technologies, particularly mobile apps, will allow brands to reach their audience through tailored experiences, helping shoppers discover relevant deals and products or offering in-store sampling while they shop.”- MICHAEL HUFFAKER Vice President at Amazon Fresh.

  11. Continuing to rely on marketing techniques that worked even just a few years ago may no longer be the right strategy. For instance, Amazon Ads has a ‘new to brand’ metric that helps marketers understand which ad tactics are most successful at driving new customers.

  12. At-home dining is here to stay. The FIA report found that 58% of grocery shoppers say they’re eating at home more often than before the pandemic, and 49% are preparing their own meals more often.

  13. As Steve Truxal explained, “The pandemic has created a new era in home cooking. Shoppers today search for information on new foods or cooking techniques more often than ever before, and they leverage technology to do so. Grocery advertisers need to find new ways to get their message in front of these shoppers through online channels as well as in the physical store.

  14. Nearly half of the respondents (49%) in the Amazon Ads/studioID survey said that investing in search and display ads was a top priority for their brand. Furthermore, consumers are increasingly going online to do research before making grocery purchases. Seventy-four percent of grocery shoppers now plan their trip in advance, and 63% are engaging online as part of this planning.

  15. Amazon Ads omnichannel solutions help grocery brands connect with home cooks before, during and after their shopping trips.

  16. Develop features to make grocery planning easier, such as digital grocery shopping lists and meal-planning tools.

  17. Today’s consumers expect a seamless experience between online grocery delivery and physical store shopping. Amazon has developed technology that leverages machine learning and audience shopping signals to tailor our customers’ shopping experiences both online and in-store.

  18. 74% of grocery shoppers now plan their trip in advance, and 63% are engaging online as part of this planning process.

  19. As shoppers’ attention is increasingly fragmented across multiple channels, their time and attention are at a premium. The onus is on brands to make a true connection with relevant audiences in authentic ways.

  20. the most successful brands are those that can stay agile enough to meet consumers where they are, anticipate their evolving preferences and accommodate changing lifestyles. Brands will also need to find new ways of reaching audiences and staying top of mind.

  21. Amazon Ads’ grocery marketing strategies are helping brands reach new and expanding audiences in today’s fast-changing consumer landscape.

I hope these statistics and insights will assist you in achieving your business and marketing objectives.

By the way, if you are interested to read the full report, you may access it here.

All the best…

Just to mention, if you are serious about learning such insights and stats from various business and marketing domains, you can find them here in the most recent form.

P.S: If you think this blog post will benefit you or others in your network/community, please share it, so that those in need can benefit from your tiny efforts! Also, don’t forget to see other value-packed blog posts from this blog that might help you/your business.

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