Shopping online for items like vegetables and eggs is growing in popularity. With the online grocery industry expected to become a $250 billion-plus business by 2025 in the US, learn how your brand can stand out.1
Over the last few years, online grocery shopping has accelerated. As consumers adopt new, digital grocery shopping methods, brands have the opportunity to reach these new customers both on and offline with Amazon’s advertising solutions.
The grocery industry today
More consumers are using online grocery shopping in order to accommodate their lifestyle needs. For example, Amazon online grocery shoppers, which includes shoppers on Amazon.com, Amazon Fresh, and Whole Foods Market, are looking for convenience and ways to save time.2 As the industry evolves, brands will need to find new ways of reaching audiences and keep their products top-of-mind for shoppers.
Grocery marketing trends
83% of grocery shoppers expect flexible delivery and fulfilment options such as buy-online and pick-up in stores.3
33% of US consumers are buying their groceries mostly in stores, and 48% are omni-channel shoppers that purchase both in physical stores and online.4
Surveyed Amazon online grocery shoppers are 40% more likely to engage in online touchpoints before grocery shopping than in-person grocery customers.5
Challenges facing grocery brands
Adapting to omni-channel shopping
U.S. grocery spending has increased from 3-4% to 10-15% since 2020.6 With this shift in consumer shopping behaviour, advertisers need to adapt their strategies to better reach new audiences.
There are more places for brands to advertise, but fragmented channels can be confusing to shoppers who are looking for consistent and accessible information when grocery shopping online.
Responding to digital disruptions
While the past few years have increased grocery demand and revenue, it has also increased the use of contactless payments and online grocery with delivery and pickup. Advertisers should consider how their advertising strategies appeal to new consumer behaviours to drive sales despite consumers spending less time engaging with their products in-store.
How brands are reaching audiences with an Amazon Ads grocery marketing strategy
Amazon online grocery shoppers are twice as likely to shop for groceries a couple of times a week than in-person shoppers.8 Brands have the opportunity to connect with these shoppers at multiple touch-points along their online shopping journey. And with Amazon landing pages, brands can help audiences discover new products.
About 29% of customers are in an exploratory mindset or 27% are browsing when they’re on Amazon shopping for groceries.9 Amazon Ads can help your brand build an ad strategy centred on aligning grocery promotions with customers’ needs. With Amazon DSP, brands can reach audiences on and off Amazon, introducing them to your top products. Brands can also connect with audiences during screen-free moments with Amazon audio ads.
1Grocery’s New Reality: The Pandemic’s Lasting Impact on US Grocery Shopping Behaviour, Mercatus in Collaboration w/Incisiv, 2020 2 Grocery shopping audience study, Kantar and Amazon Ads, December 2020 3 Salesforce State of the Connected Consumer, 2020 US 4 Supermarket News, U.S. grocery shoppers head back to stores as COVID-19 vaccinations rise, 2021 5 US Supermarket News, U.S. grocery shoppers head back to stores as COVID-19 vaccinations rise, 2021 6 US – Kantar and Amazon Advertising Grocery Study, 2020 US 7 Grocery shopping audience study, Kantar and Amazon Ads, December 2020 8, 9Grocery shopping audience study, Kantar and Amazon Ads, December 2020