After years of partnering with marketers in the food-and-beverage industry, we’ve learned some valuable lessons about what these consumer packaged goods (CPG) brands need from their ad campaigns.
They are seeking reach, a strong return on investment, direct attribution of sales from ad impressions, innovative ways to bridge the gap between discovery and purchase, and personalized experiences. In short, they want their brands to be unmissable amid the growing noise of today’s fragmented and cluttered media environments.
To achieve these ambitious goals, a growing number of food and beverage marketers are incorporating TV streaming advertising into their media mix. In fact, TV streaming reaches 74% of the 18- to 49-year-old demographic reached by streaming weekly as of March 2022, compared to 65% for traditional TV.¹
Beyond the standard 15- or 30-second ads, TV streaming offers cutting-edge ways to engage new customers through home screen takeovers, pause screen ads, personalized content, and shoppable ads.
Andy McKeever, Head of Industry, CPG Food & Beverage at Roku said,
McKeever recently spoke at the Digital Food & Beverage conference in La Jolla, California alongside top executives from leading restaurant groups and CPG companies. Here are three essential takeaways for advertisers in the industry who are considering TV streaming advertising.
Retail media is surging. U.S. retail media ad spend is projected to hit $45.15 billion in 2023, an increase of nearly 20% from 2022, according to eMarketer. By 2027, it’s anticipated to hit $106.12 billion.² And no wonder. Advertisers can now access first-party consumer data from grocery chains, big box stores and other retailers to precisely target their TV streaming ads. This eliminates guesswork by revealing offline consumer purchasing patterns and tracking whether an ad exposure resulted in an in-store or online sale.
Roku is at the forefront of the retail media opportunity. Our Commerce+ Partnerships merge data from Roku’s 71 million active accounts with proprietary data from retail giants like Best Buy, Cox Automotive, DoorDash, and Walmart. The partnerships enable more effective engagement with consumers throughout the purchasing journey. For example, Roku partnered with grocery chain Kroger to allow advertisers to leverage Kroger Precision Marketing’s customer purchase data to build high-performing audiences based on data from 60 million households who shop at Kroger.
Home Chef, a direct-to-consumer meal kit company, used KPM data and Roku streaming ads to reactivate lapsed users, engage with new customers, and understand how advertising impacts in-store sales. The campaign resulted in a nearly 2.5x improvement in return on ad spend, a nearly 10% increase in purchasing households, and an almost 21% lift in sales among new buyers. Additionally, the brand recaptured lapsed buyers.³
“Retail media offers an unrrivaled opportunity for brands to reach focused audiences with precision messages by accessing point-of-sale data from Roku’s partners,” according to McKeever.
CPG food-and-beverage advertisers are on a mission to deliver relevant ads to each potential consumer, thereby reducing wasted spend. That takes first-party data and a deep understanding of your target audience. These initiatives are even more critical as the sunsetting of third-party cookies and privacy regulations have made it harder to track website visitors.
Roku streaming ads provide the first-party data advertisers crave to target. With first-party data on 70+ million active accounts and Automatic Content Recognition (ACR), we have a wealth of information and can learn what certain TV viewers are watching in real-time.
Social media taught users to shop their feeds. Amazon conditioned consumers to purchase with one or two clicks. We believe TV will be the next frontier in shopping, and we’re simplifying the process to prepare for that future. For instance, Roku’s Action Ads with Walmart allow users to press OK on their remote to buy directly from their TV screens — with Walmart shipping the product to their homes. No QR codes or typing in long credit card numbers required.
Shoppable TV is particularly effective for engaging younger consumers. A staggering 96% of Gen Z adults in the United States subscribe to at least one streaming service, and 46% spend two hours or more each day streaming TV.⁴
Bottom line: If people see something they want to buy, they expect an easy way to buy it.
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¹ Roku Analysis of Nielsen Data, 2022
³ Home Chef Drives +20% Increase in Sales Among New In-Store Buyers
⁴ Morning Consult Survey conducted March 3-8, 2022 | Luth Research, Profiling the Gen Z Consumer, May 2022