Retail media advertising has exploded in popularity, but there are certain CPG marketing challenges that are preventing emerging brands from achieving their growth potential.
In a recent episode of Engagement Matters, Snipp’s Chris Cubba and Brendon Lemon sat down with Eleanor Hayden, CEO of Hayden Consultancy to discuss retail media networks, some of the common challenges emerging brands face, and how to overcome them.
Understanding the Retail Media Platform Landscape
Instacart’s Early Advantage
Instacart’s aggregated advertising platform allows brands to reach shoppers across multiple grocery retailers through a single interface. It started retail media advertising over eight years ago – before they even had proper backend systems in place – propelling it to the top of the industry.
It solidified its position in the years since, and today, it has several advantages over its competitors. For example, Instacart:
- Aggregates multiple retailers, so you can commit larger budgets across your network
- Covers almost all U.S. grocery retailers, except Whole Foods
- Now includes Uber Eats advertising through platform partnership
Emerging Platforms
For all Instacart’s success, it’s not the only platform on the market. DoorDash is another exciting example.
Launching in early 2025, DoorDash is a scalable platform that’s already creating opportunities for global brands. Danone uses DoorDash to support its Mornings Upgraded campaign, incorporating platform-specific features from multiple retailers to validate consumer purchases across single and multiple transactions. This has enabled the brand to maximize program reach while accommodating different shopping behaviors.
In-store Still Dominates
Despite the excitement around digital retail media, most grocery shopping still happens in-store – 85%, according to Eleanor.
The problem isn’t that retail media lacks value. It’s that brands often miss where most purchasing decisions happen – in-store.
“Just because we can’t track ROAS [return on ad spend] the same way for in-store signage doesn’t mean we shouldn’t do it. Make the important measurable, not the measurable important.”
– Eleanor Hayden, CEO, Hayden Consultancy
So, what’s the secret to successful in-store activation? Eleanor emphasizes:
- Strategic shelf placement and optimization
- Corrugated displays that demand attention
- Endcap optimization with bold visuals
- Point-of-sale offers and products that influence purchase decisions
Brands like Brookfield Properties understand this balance. Its Dine & Delight cash-back program drives foot traffic to mall restaurants while measuring digital engagement and in-store visits through an integrated receipt processing platform.
Retail Media & CPG Marketing Challenges Emerging Brands Face
Challenge 1. The Platform Problem – Why One Size Doesn’t Always Fit All
One of the biggest CPG marketing challenges emerging brands face is understanding the differences in retail media platforms.
In reality, each platform operates with different rules and capabilities. You need to factor this into your decision when choosing. Brands that are doing this well include:
- Target’s bidding evolution: Target recently switched from first-price to second-price bidding, completely changing its campaign management strategy overnight. As such, you must be reactive and adjust your bids quickly to avoid putting ROAS at risk.
- Instacart’s automatic keyword addition: unlike Google Ads, Instacart automatically adds keywords to campaigns. Single-keyword strategies – common on other platforms – simply don’t work here, as it risks attracting unqualified leads and incurring in unnecessary costs.
- Walmart’s competitive restrictions: Walmart has specific rules around “competitive conquesting” that differ significantly from other platforms. To stay competitive, it’s important to promote the specific features and strengths of your products.
“We’ve onboarded clients from nearly every kind of agency, and across the board, we’ve seen immediate growth in retail media performance. I think that’s because we bring a true retail perspective – we’re not trying to apply Facebook or Google ad logic to Instacart or retail platforms.”
– Eleanor Hayden, CEO, Hayden Consultancy
These platform differences require expertise to navigate. Our work with brands, like Nestlé, are a prime example. Nestlé’s digital barcode program required platform-specific customization to work effectively across Walmart’s unique infrastructure. But with our help, they got a solution that enabled them to reach 65 million customers through targeted offer distribution.
Challenge 2. Campaign Maintenance – The Forgotten Success Factor
Beyond platform differences, many brands suffer from what Chris Cubba calls “set-it-and-forget-it syndrome”.
“We brought a client over recently who’d been running the same campaign since 2019. You have to refresh these every so often – update keywords, make sure all the products are refreshed and looking great, and reassess strategy.”
– Chris Cubba, CRO, Snipp
Regular optimization isn’t optional – it’s essential for maintaining performance. Why? Because:
- Shopper behaviors evolve
- Product catalogs expand
- Competitive landscapes shift
- Platform algorithms update
Proactive maintenance has driven success for brands like Kellogg’s. Its multi-country Pringles campaign – which ran across five countries in the Middle East, North Africa, and Turkey (MENAT) – required continuous optimization across different languages, currencies, and consumer behaviors to maintain effectiveness.
Budget Allocation for Emerging Brands
Strategic resource allocation is critical for emerging CPG brands with limited budgets. Eleanor has developed a two-stage framework to help clients stay on top of their finances.
Stage 1. Revenue-based Prioritization
- Allocate spend proportionally to projected revenues by retailer
- Add extra support for new product launches at specific retailers
- Focus on retailers with strong shopper marketing opportunities
Stage 2. Platform Priority Order
- Sponsored search with hands-on management
- Shoppable display ads
- Sponsored brands
- On-site display
This strategic approach has delivered impressive results. In Eleanor’s experience brands typically see over 100% growth in retail media platform profitability in the first month – increasing to 143% for Instacart and over 160% for Target.
The key is focusing on new-to-brand sales rather than simply shifting existing customers between platforms.
3 Priorities for the Next 12 Months
The simplest way to optimize your retail media strategy is to concentrate on the fundamentals. Eleanor highlights three strategic priorities to focus on over the next year.
1. Reset Your Expectations
If you think retail media performance is plateauing – particularly in sponsored search and shoppable display ads – don’t panic. As these platforms grow, it’s likely you’ll find new opportunities for your brand.
2. Right-size Your Budget
Support your top retailers appropriately, without overspending. For instance, it’s a good idea to have an objective partner who isn’t compensated based on your media spend.
3. Don’t Abandon In-store
Household brands continue to invest heavily in physical advertising. They know consumers shop most in-store. So, while you should continue supporting online retail media, make sure you’re standing out on the shelf. You can do this by integrating retailer-specific mechanics to drive in-store traffic. For example, “Buy X Get Y” sweepstakes, instant wins, and similar promotions that drive engagement and help build stronger retailer relationships.
Balancing Digital and Physical is the Key to Success
Successful emerging brands don’t choose between retail media and in-store advertising– they integrate both.
Striking the perfect balance might seem like a daunting prospect amid shifting attitudes and behaviors. But no CPG marketing challenge is insurmountable.
When you understand that most grocery purchases happen in physical stores while leveraging platform-specific strategies, you can create multiple touchpoints that reinforce your brand message wherever consumers encounter your products.