The CPG View

CPG & eComm: Retail Media - What Leaders Need to Know ???? Great report by the dentsu team. The Big Question — How should brands optimize retail media investments as networks expand and budgets tighten? By the Numbers: (6) ?? $54.9B → Retail media has nearly tripled in size since 2020, up from $18.8B. ?? 94 → The number of retail media networks (RMNs) today—compared to just 28 in 2020. ?? 89% → Of brands now use an external agency to manage retail media, signaling execution challenges. ?? 78% → Retailers expect RMN revenue to grow over the next three years, but confidence is slipping (down from 91% last year). ?? 66% → Of brands say the number of RMNs is “just right”, but complexity is a growing challenge. ?? 53% → Of RMN ad spend now goes to offsite media, shifting beyond traditional retailer-owned placements. Key Insights for CPG Leaders: (3) 1?? Retail Media Isn’t Optional Anymore → RMNs are now table stakes for visibility and sales—but picking the right ones is critical. 2?? Fragmentation is Your Biggest Challenge → With 94 RMNs in play, brands must focus on networks that drive real incrementality, not just more ad spend. 3?? Retailer Negotiations Are Changing → Ad budgets are becoming a key part of trade discussions—if you’re not aligning retail media with sales, you’re losing leverage. Key Actions for CPG Brands: (2) ??Prioritize RMNs That Deliver Incremental Growth → Instead of spreading budgets across multiple RMNs, double down on the networks that provide clear ROI, unique audiences, and closed-loop measurement. ??Integrate Retail Media into Trade Strategy → Retailers are treating RMNs as a core part of supplier negotiations. Winning brands use RMN investments strategically to strengthen partnerships, not just to buy ad space. How to Stay Ahead in 2025: (3) - Shift from Presence to Performance → It’s no longer about being everywhere—focus on RMNs that drive true business outcomes. - Demand Better Measurement → Push for transparent, cross-platform performance data to compare RMNs. - Retailers Will Prioritize Partners, Not Just Advertisers → Winning brands integrate RMNs into broader joint business planning. Final Thought — Retail media is evolving fast—brands that align investments with performance and retailer relationships will win. Are you making every dollar count? Happy to share (43 pg). Ways to reach us: Pattern? The CPG View The Retail eCommerce Club Subscribe to The Retail Media View newsletter: ???? https://lnkd.in/etsfcm-S #RetailMedia #CPG #Ecommerce #ShopperMarketing #Sales #BrandManagement #DigitalAdvertising

eComm & CPG: The Future of eCommerce Supply Chains — What Consumers Want ?? Great write up by the McKinsey & Company team. The Big Question: (1) ?? How can eComm brands balance consumer demands for low-cost, flexible, and reliable deliveries while managing rising operational costs? By the Numbers: (7) ?? +46% → Warehousing costs have spiked since 2019, driving up logistics expenses. ?? +31% → Utility costs for storage and logistics have increased significantly. ?? +28% → Diesel fuel prices jumped from $2.98 to $3.81 per gallon in five years. ?? +25% → Overall logistics costs have risen, making efficiency critical. ?? +22% → Warehouse labor costs increased, with wages climbing from $20.33 to $24.73 per hour. ?? 90% → Consumers are willing to wait up to 3 days for delivery, but patience drops sharply after that. ?? 70% → Urban consumers prioritize flexible delivery scheduling. Why It Matters: (3) 1. Reliability Over Speed → Consumers now rank on-time delivery higher than fast shipping. 2. Flexibility is Key → Delivery location options and return ease have become top priorities. 3. Cost Pressures on Retailers → Rising logistics expenses are forcing brands to rethink fulfillment strategies. Final Thought: (1) ???? eCommerce logistics are evolving—reliability, cost-efficiency, and flexibility will define the next phase of consumer expectations. Happy to share (9 pgs). Ways to reach us: Pattern? The CPG View The Retail eCommerce Club Subscribe to The Retail Media View newsletter: ???? https://lnkd.in/etsfcm-S #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin #theretailmediaview #thecpgview

CPG & eComm: Retail Media - What Leaders Need to Know ???? Great report by the dentsu team. The Big Question — How should brands optimize retail media investments as networks expand and budgets tighten? By the Numbers: (6) ?? $54.9B → Retail media has nearly tripled in size since 2020, up from $18.8B. ?? 94 → The number of retail media networks (RMNs) today—compared to just 28 in 2020. ?? 89% → Of brands now use an external agency to manage retail media, signaling execution challenges. ?? 78% → Retailers expect RMN revenue to grow over the next three years, but confidence is slipping (down from 91% last year). ?? 66% → Of brands say the number of RMNs is “just right”, but complexity is a growing challenge. ?? 53% → Of RMN ad spend now goes to offsite media, shifting beyond traditional retailer-owned placements. Key Insights for CPG Leaders: (3) 1?? Retail Media Isn’t Optional Anymore → RMNs are now table stakes for visibility and sales—but picking the right ones is critical. 2?? Fragmentation is Your Biggest Challenge → With 94 RMNs in play, brands must focus on networks that drive real incrementality, not just more ad spend. 3?? Retailer Negotiations Are Changing → Ad budgets are becoming a key part of trade discussions—if you’re not aligning retail media with sales, you’re losing leverage. Key Actions for CPG Brands: (2) ??Prioritize RMNs That Deliver Incremental Growth → Instead of spreading budgets across multiple RMNs, double down on the networks that provide clear ROI, unique audiences, and closed-loop measurement. ??Integrate Retail Media into Trade Strategy → Retailers are treating RMNs as a core part of supplier negotiations. Winning brands use RMN investments strategically to strengthen partnerships, not just to buy ad space. How to Stay Ahead in 2025: (3) - Shift from Presence to Performance → It’s no longer about being everywhere—focus on RMNs that drive true business outcomes. - Demand Better Measurement → Push for transparent, cross-platform performance data to compare RMNs. - Retailers Will Prioritize Partners, Not Just Advertisers → Winning brands integrate RMNs into broader joint business planning. Final Thought — Retail media is evolving fast—brands that align investments with performance and retailer relationships will win. Are you making every dollar count? Happy to share (43 pg). Ways to reach us: Pattern? The CPG View The Retail eCommerce Club Subscribe to The Retail Media View newsletter: ???? https://lnkd.in/etsfcm-S #RetailMedia #CPG #Ecommerce #ShopperMarketing #Sales #BrandManagement #DigitalAdvertising

eCommerce & CPG: The Profitability Death Spiral Scaling on marketplaces isn’t as simple as listing products and turning on ads. Without the right strategy, brands can fall into a profitability death spiral—one that erodes margins across every channel. Here’s how it happens → 1. Marketplace demand surges 2. Third-party sellers flood the platform 3. Intense competition drives prices down 4. Brand loses control of the Buy Box 5. B&M retailers match lower online prices 6. Retail profits shrink 7. Marketplace margins erode 8. All channels become less profitable The result → Brands work harder just to stay afloat while price erosion and unauthorized sellers undercut profitability. Global Complexity is Only Getting Harder — Expanding across marketplaces isn’t just about Amazon and Walmart anymore. The global landscape includes dozens of platforms—each with unique pricing, logistics, and compliance challenges. North America → Amazon, Walmart, Target, eBay Europe → Allegro, Otto, Zalando, Rakuten APAC → JD.COM, Tmall, Lazada, Shopee, TikTok Shop And that’s just the storefronts. Behind the scenes, brands must navigate software, logistics, media, and services complexity—everything from pricing automation to fulfillment networks and ad tech. How to Win Without Eroding Margins — eCommerce success isn’t about chasing every new marketplace. It’s about profitable scale. Winning brands focus on → 1. Controlling the marketplace experience → Enforcing price discipline and eliminating unauthorized sellers 2. Margin-first ad strategies → Maximizing ROAS without driving prices into the ground 3. Global expansion done right → Entering new markets with operational expertise, not guesswork 4. AI-driven inventory and pricing → Staying ahead of demand fluctuations while protecting profit At Pattern, we’ve helped hundreds of brands navigate this complexity—winning in marketplaces without sacrificing long-term profitability. If you’re tired of margin erosion and want a scalable, data-driven marketplace strategy, let’s talk. We will be at Expo West this week — if you see us around, please say hi. If interested in learning more, DM me “SCALE” and let’s chat. Ways to reach us: Pattern? The CPG View The Retail eCommerce Club Subscribe to The Retail Media View newsletter: ???? https://lnkd.in/etsfcm-S #ecommerce #digital #omnichannel #strategy #cmo #cdo #ceo #cro #leadership #retailecommerceclub #cpg #privateequity #playtowin #thecpgview #theretailmediaview