Driving Growth in CPG Through the Use of Omnichannel Marketing Measurement

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by MMA / Ipsos

Why Omnichannel Measurement has Grown in Importance in CPG

Why Omni-Channel Measurement has Grown in Importance in CPG

Source: eMarketer

Grocery & Food e-commerce penetration still lags many consumer categories. Food & Grocery e-commerce sales represent 7% and 13% of 2024 total retail sales respectively, lagging categories such as Health & Personal Care and Pet Products ,which represent 21% and 42% of 2024 total retail sales, respectively.

However, food & beverage e-commerce growth is forecasted to outpace all other categories through 2026.

Food & Beverage e-commerce growth is projected to exceed +20% annually through 2026

Source: eMarketer

Food & Beverage e-commerce growth is projected to exceed +20% annually through 2026. Focusing Omni-channel measurement against the key players in the space is critical to support winning strategies. Along with sales penetration, omni-channel measurement is expanding rapidly in these categories.

Driving Omnichannel Growth in Retail Using Unified Marketing Measurement and Optimization

At a recent ANA (Association of National Advertisers) event, Ramesh Moorthy, Sr. Director of Global Strategic Growth Management, (McCormick & Co) and Dan Eggleston, SVP Analytic Consulting, (Ipsos MMA) shared a series of success cases from McCormick highlighting how advanced analytics are implemented cross- functionally to deliver significant value through the optimization of Paid/Owned/Earned marketing to improve the efficiency and effectiveness of their investments. Success cases include:

  • Informing a full-funnel marketing strategy to optimize both short-term and long-term ROI
  • Balancing investments between B&M stores and e-commerce to drive efficient Omni-channel growth
  • Embedding results into strategic decision making through change management and meta-learnings

Key measurement principles should be applied to a unified omnichannel approach:

  • Platform Specific Measurement
    Granular data input is required for all platform-specific marketing channels and campaigns. Upper and Lower funnel Paid Search, Display and Video campaigns need to be independently measured.
  • Consumer Shopping Trends
    Accurate E-comm measurement requires industry-specific consumer shopping trends to ensure proper attribution to marketing vs. base consumer trends.
  • Cross-channel Halo
    Consumer journeys often begin on platforms such as Amazon and result in conversion across other channels. It is essential to measure both on-platform impact as well as halo to other channels.
  • Cross-channel Cannibalization
    Understanding the NET IMPACT of E-comm onto the enterprise requires measurement of cannibalization/ consumer switching. E-comm growth is rarely 100% incremental.

 What have we learned?

  • You Gotta Play to Win: CPG brands that don’t play will certainly lose share given growth of e-commerce
  • Invest & Test: Incremental investment and testing are required to maintain share of growth
  • Measure to Learn: Find the winners and losers and learn as quickly as possible
  • Optimize Your Investments: Optimize toward the winners to maximize growth and efficiency

Value for McCormick

Investing in Omnichannel Search and Media can drive online and offline growth. Key insights:

  • Overall learning confirmed our hypothesis
  • Needed to think differently about what we were measuring
  • Needed to look at the right KPIs -Losing Share of Search; stood up ROAS
  • Shift in investments –created a need to scale investments in other parts of business, driving incremental sales online/offline

McCormick Business Process