Ad Innovation That Connects CPG Brands to Customers


As the consumer packaged goods (CPG) industry responded to the spike in demand that the global pandemic brought, CPG brands were largely focused on meeting short-term needs vs. long-term growth strategies.

Now, with continued uncertainty around the impact of new Covid-19 variants, inflation, labor and supply chain challenges, wavering shopper loyalty and the accelerated shift toward online shopping and delivery, CPG brands are under newfound pressures to find new ways to innovate and adapt .

Fortunately, there are many opportunities for CPG brands to thrive during this complex but dynamic time. This includes boosting sales within sub-categories like convenience, perishable or frozen foods—where, according to IRI’s US grocery sales data, growth in online shopping has slowed since 2020—as well as easily adjusting marketing strategies based on local inventory, better bridging the gap between in-store and online experiences, and driving discovery.

While online grocery delivery is projected to grow by 21% from 2021 to 2022 according to estimates from the US Department of Commerce, almost 60% of US CPG sales still happen in stores, according to survey respondents from a 2021 Meta-commissioned study with HarrisX . Digital, and particularly social media, is playing a bigger role in driving discovery long before shoppers fill their online carts or step foot in a retail location. According to the same study, 84% of shoppers surveyed have purchased groceries in-store after discovering them on social media.

Establishing and nurturing direct relationships with customers and actionable shopper insights are key drivers for CPG brands looking to succeed in this environment. According to McKinsey, CPG brands should optimize their data-driven marketing and holistic omnichannel sales strategies.

At Meta, we’re supporting CPG brands in building these capabilities with a new Collaborative Ads for Grocery and Food Delivery beta, which connects brands more closely with customers and provides insight about what they buy and will likely want to buy in the near future.

Building Closer and more insightful customer relationships

Meta’s Collaborative Ads for Grocery and Food Delivery beta supports a new kind of partnership between grocery brands and delivery providers. For the first time, brands have the opportunity to reach the delivery provider’s high-intent audiences on Meta and drive conversions for their products on the delivery provider’s site through dynamic local targeting and the ability to show local availability as well as pricing.

Many CPG brands using Meta’s advertising products to accomplish these objectives say they have been investing in production facilities to increase supply and ensure products are available. The Collaborative Ads beta will help brands adapt to changing business needs like supply constraints by promoting items that are highly relevant to a shopper, in stock and available within their vicinity.

This allows optimizing for a specific set of available SKUs—including perishable or hard-to-ship foods, the most profitable items, or fully supplied products. And for brands looking to drive online sales, Collaborative Ads can easily and reliably help tap into the power of ecommerce.

“Over the years, we’ve been building and evolving our ecommerce capabilities to give consumers a wide variety of delicious food when and where they want it—focusing on unbeatable convenience, choice and ease of purchase,” says Alicia Enciso, CMO, Nestlé USA. “We’re taking the next step in our frictionless commerce journey, using Collaborative frozen Ads to deliver convenient meals—like Sweet Earth, Lean Cuisine and Stouffer’s, to consumers at the right place and time.”

Historically, it’s been harder for the CPG industry to sell directly as brands relied on partners to manage relationships with shoppers. The Collaborative Ads beta supercharges this partnership, offering the brand the ability to run highly relevant ads and return more performance insights to brands.

“Meta Collaborative Ads are a great start in helping us connect our brands’ social presence to commerce experiences,” says Marion Campbell, head of US media at Mondelez. “Last-minute delivery services are a growing among a core part of our consumer behavior base, and we’re looking forward to seeing how this can further build our presence and relevance with our consumers.”

The future of shopper marketing

At Meta, we see a bright future for both shoppers and brands in the grocery and food delivery space, where the lines between online and offline channels will continue to blur. Products like Collaborative Ads for Grocery and Food Delivery can help connect shoppers’ needs to the brands that can fulfill them on demand.

Meta will continue to develop solutions that result in these win-wins for brands, shoppers and delivery providers, unlocking new opportunities for growth and innovation.

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To get started with Collaborative Ads, visit Meta for Business to learn more about the solutions available.

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