There will be increased opportunities within the retail media space for CPG manufacturers and retailers, according to Acosta, as consumers view technology like smart carts as beneficial and an alternative to overstimulating storewide digital screens. With capabilities for add-ons such as gamification for rewards and AI-enabled personalization, CPGs and retailers can elevate the consumer experience while increasing trial, loyalty, and unit sales, per the company.
While Acosta claims the retailer app is the most powerful in-store media tool, challenges continue to plague retailers as they look to increase personalization while being mindful of shopper privacy.
Another avenue for increased personalization will be social commerce — a channel that holds the opportunity for brands and retailers to set up digital storefronts for direct consumer engagement, particularly with younger demographics.
Fifty-two percent of Gen Z and 22% of millennials made a purchase on TikTok in the past three months, per Acosta, compared to just 11% of Gen X and 3% of baby boomers.
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“As consumers are spending more time on their social feeds, they are also spending more time using these platforms to do product research, read influencer posts, discover new products they ‘didn’t know they needed,’ and with the convenience of a click, make a purchase they believe meets their needs or preferences,” said Risch.
Fifty-one percent of shoppers who used social media have clicked on a social media ad in the past three months. Of those, 24% purchased an item through shoppable features.
It’s the ideal blend of entertainment, personalization, connectivity, and convenience to build into a retail or brand commerce plan, Risch added.
Empowered shoppers will also be prioritizing transparency in the year to come, particularly in the health and wellness areas as there is declining trust in traditional marketing for health management.
Consumers are instead flocking to telehealth, health coaches and influencers, and wearable tech to make more informed wellness choices. A “food as medicine” mentality will continue to gain traction, according to Acosta, as consumers look to nutrition to prevent disease and medicines like GLP-1 to aid in weight loss.
As consumers pay closer attention to food labels and ingredients, CPGs have an increased opportunity to position products as part of health journeys.
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