Red Comma Media & WARC: Retail Media Networks

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We’ve Been Published!

Red Comma Media discusses Retail Media Networks as part of the WARC November Spotlight series.

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We strive to provide innovation and leadership for our advertiser partners and as part of this philosophy, we have been working with Retail Media Networks (RMNs) for our CPG brands for most of 2022, gathering early learnings and providing insights for the best ways to leverage these powerful new tools for our brands moving forward.

We’re honored to have published an article about using RMNs on challenger brands as part of WARC’s November spotlight series on retail media trends. WARC subscribers can view the article in full here.

Our agency relies on WARC for insights across the spectrum of advertising and media research and we’re beyond excited to have our own content published on this platform.

Please don’t hesitate to reach out if we can help your brand or agency with this new, exciting RMN space. We’d love to hear from you!

Light users drive CPG growth

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We’re big believers in reach-based planning because over & over we’ve seen it drive business results. A new study released in 2022 shows that using broad-reaching campaigns to attract “super-light” users is key to brand growth.

 

Research* was conducted on 55 CPG brands across 12 categories. The study found that “super-light” users (defined as someone who purchased a brand 5 times or less over a 5 year period) are responsible to driving long-term success. These “super-light” users represent, on average, over 75% of unique brand purchasers. And the smaller the brand, the higher the percentage, so this type of user is particularly important for challenger brands.

 

So what does this mean?

  • Penetration is more important than retention; trial matters more than loyalty

  • Mass reach campaigns are most likely to reach occasional buyers

  • Consistent and continuous messaging will help maximize reach

*Reaching “super light” buyers is critical for CPG Brand Success, Stephen Whiteside. WARC

Best targeting for CPG ROAS?

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We’ve partnered with [24]7.ai on several AI-driven display and video campaigns and each have been set up as a clear test of hypotheses that would help drive brand advertising forward. Our latest test was designed to show the return on ad spend (ROAS) differences between:

  • Purchase-based targeting (2nd party, from IRI)

  • Behavioral/interest targeting (3rd party)

  • Contextual targeting

Each test was linked to store-level sales data and a control cell was held out in order to measure the lift that advertising produced. Similar to our other AI efforts, tens of thousands of ads were served as the computer matched headlines with recipes and images for optimal results. (note: creative learnings have been robust as well).

The result was a statistically significant increase in sales and ROAS for ads that were contextually targeted toward passion point environments for the brand.