4 Reasons Why Retail Media is indispensable for CPG Brands

WASHINGTON - EntSun -- Retail media networks are the latest hot addition to marketers' advertising mix around the globe. By allowing advertisers to bid for available ad spaces, retailers enable targeted offers, products, and messages to reach the right customers.
Retail chains have always been the go-to place for brands, especially in the CPG space, when driving sales most efficiently. If brands are not present in the moment of truth (purchase), consumers can't buy what they can't add to their carts, whether online or offline.

Rising eCommerce
eCommerce accounted for $4.3 trillion in sales or 18% of total retail sales in 2020.
The COVID-induced lockdowns worldwide have accelerated digital adoption letting more customers enjoy the safety and convenience of online shopping. The more people shop online, the better the data quality with the retailers, making retail media networks more powerful with customer cohorts that the brand advertisers want to target.

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Eroding Brand Loyalty
Because of new entrants and private labels, market leaders are already losing customers. As per recent studies, customers are becoming more price-conscious and are open to buying budget brands with comparable perceived value.
Retail media networks provide an opportunity for these brands to be present during the customer buying cycle.

Retention and Repeat Purchases
Customer retention is a challenge facing marketers across geographies and industries. With consumers spoilt for choices and lowering brand loyalty, customers' buying cycle is reset after every purchase. Consumer data and, more importantly, real-time dynamic segments that retailers can create from that data will be crucial for CPG brands to develop customer retention strategies.

Evolving Supply Chain
The last few years have seen the rise of direct-to-consumer brands that are well-positioned to deliver the same value as the established brands at lower prices, thanks to fewer intermediaries in the supply chain. These D2C brands leveraged social media and improved last-mile delivery to get a loyal customer base and are now prominent on eCommerce platforms.

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Retail media ad networks can help CPG brands by reaching the right consumers at the right time, improving the cost of acquisition, and putting a retention plan in place.

Kritter Software Technology enables retailers to onboard their first-party data, generate audience-based insights, create customer segments, and make them available to target through the demand-side platform.

Rohan Rai, Co-founder of Kritter Software Technology Pvt Ltd, states, "One of our clients has a customer base reaching a few hundred million. Their major concern was the scalability of the platform and the security of the customer data. Kritter helped them scale to onboard their entire first-party data, create dynamic segments, and onboard their partner brands and sellers."
Now, after a year, the client manages more than a billion ad requests daily.