CPG Brands Need to Get Their Act Together in the Post-Cookies World

"80% of CPG Sales Come from Physical Stores, but Brands Don't Invest in Hyperlocal Marketing"

Large CPG (Consumer Packaged Goods) brands like Unilever face a significant challenge due to their lack of end-user data and quality engagement. This issue becomes even more critical in a post-cookies world. Despite the majority of their sales (80%+) originating from physical stores, these brands have not invested in a hyperlocal marketing strategy.

Why does this problem exist?

1. Lack of First-Party Data: Large CPG brands have historically relied on third-party data, such as cookies, for their digital advertising strategies. With the impending demise of cookies, they now lack the valuable first-party data needed to understand and engage with their customers effectively.

2. Neglected Hyperlocal Strategy: These brands have not prioritized hyperlocal marketing. They've focused on broader, national or global campaigns, overlooking the potential of reaching customers at the local level, where the majority of their sales occur.

3. High Retargeting Costs: Without first-party data and a hyperlocal approach, retargeting becomes costly and less efficient. Brands end up spending more to reach customers who have already shown interest in their products.

4. Contextual Engagement Gap: Large brands struggle to engage customers at a hyperlocal level with relevant and meaningful content. This lack of contextual engagement diminishes their ability to connect with customers when it matters most.

CPG brands need to capture first-party data, but they lack a direct connection to end-users due to their focus on physical stores. Brands want to engage customers at a hyperlocal level, but they lack the tools to deliver contextual content efficiently. Retargeting is expensive, yet brands need to reach customers who have already shown interest.

Principle of Segmentation: Implement AI-powered tools that segment the customer base and gather first-party data through hyperlocal digital interactions, such as mobile apps, Wi-Fi, and geolocation services.

Principle of Local Quality: Develop hyperlocal content strategies that focus on the quality and relevance of content to specific regions. Use AI-driven content recommendation engines to tailor messages to local preferences.

Principle of Preliminary Action: Implement real-time retargeting through AI-driven algorithms that optimize ad spending by targeting customers who are actively engaged with the brand's hyperlocal content.

Here are the steps that brand managers can take to quickly overcome this impending Blowup

Steps and Findings:

• Step 1: Implement AI-powered data collection tools, such as mobile Sellrapps with location tracking, and Fully functional Hyperlocal Digital assets to capture first-party data.
• Step 2: Develop hyperlocal content strategies that leverage AI to personalize content for different regions based on the conversion funnel content plan
• Step 3: Utilize AI algorithms for automated Demand generation for real-time retargeting, reducing advertising costs.
• Step 4: Deploy a centralized AI platform to pull and push real-time data across all dealers' endpoints, ensuring consistency and accuracy.