Last Updated on: 24th April 2024, 08:19 am
The food and beverage industry has always been incredibly competitive. After all, food is important to all of us. It’s not just a necessary source of nutrients, protein, and fiber; it’s inextricably linked with culture, community, family, and friends. It brings comfort, togetherness, even bliss. It’s the way to our hearts.
But in recent years, the competition in Food & Beverage has reached a boiling point. There’s been a feeding frenzy as a horde of new players has entered the fray. Between any brand and a customer’s table lies a crowded, fiercely competitive marketplace. The advent of food apps and a growing consumer expectation of convenience has further heightened the competition. The latest digital technology provides unprecedented convenience for the consumer and a widening plethora of choices.
Ingredients:
- Sweet and sour—trends and challenges in Food & Beverage e-commerce
- Step 1—Add relevance to drive first-time orders
- Step 2—Fold in high-tech retargeting to boost reorders
- Step 3—Toss in a liberal splash of geo-targeting
- Step 4—Time your ads to increase loyalty and retention
- Step 5—Mix in Deep Learning, serve to taste
- RTB House can serve up better results in the Food & Beverage Industry
Sweet and sour—trends and challenges in Food & Beverage ecommerce
The continuing march of technology means that we have all come to demand, rather than prefer, convenience. There’s increasing demand for online shopping, with Food & Beverage projected to reach 21.5% of total retail ecommerce sales in the U.S. by 2027, and its conversion rates of 3.7% are the highest of any industry. It’s a thriving marketplace. But with any healthy industry comes fierce competition.
To win this business, brands are having to respond to evolving tastes. Consumers have become more aware of the importance of maintaining a healthy, balanced diet. There’s more scrutiny on meals’ nutritional and caloric content and the ethical and sustainable sourcing of ingredients. Recent findings show that 67% of consumers prefer to buy from brands that are sustainable. There’s also a rise in vegetarian, vegan, and gluten-free eating habits. Research puts the global plant-based food market size at $42.86 B in 2023 and is predicted to reach $87.12 B by 2032, growing at a CAGR of 8.2%. Consumers are increasingly gravitating toward the more sustainable sourcing, production, packaging, and transportation of food.
This means not only a change in processes for many brands but also a change in messaging. Add to this continuing inflationary pressure, and you have all the ingredients of a pressing need to design and execute best-in-class Food & Beverage marketing campaigns. There is an intensifying challenge to build user loyalty to be top-of-mind when hunger strikes. Every brand is trying its hardest to be heard through the noise. But sometimes it’s about working smarter, not harder.
Here is your 6-step recipe for Food & Beverage marketing campaign success.
Step 1—Add relevance to drive first-time orders
By serving tastier, better-placed ads, you can top the food chain and drive first-time orders. Why not whet the appetite by including promo codes or some other enticing incentive? In our experience, it’s a great way to get your products from mind to mouth.
See also: Food for Thought: Effective In-App Ads for Food and Beverage Brands
Step 2—Fold in high-tech retargeting to boost reorders
In a highly competitive industry, if you don’t re-engage users, they will order food elsewhere or simply not order at all. Come out on top by not only showing promos, but also the products users have already searched for or added to their carts. Energize lapsed users with retargeting campaigns underpinned by the latest technology.
Step 3—Toss in a liberal splash of accurate geo-targeting
Geotargeting is a subset of segmentation, and it’s a critical consideration for Food & Beverage brands. There is little more important than user catchment area for brands as the timely delivery of fresh produce is high on the list of customer priorities. With so many other options on the scene, brands have to deploy the most accurate geo-targeting ads to get on top and stay there.
Step 4—Time your ads to increase loyalty and retention
Sometimes your brand will already be on the tip of consumers’ tongues, and all they need is a reminder of why they enjoyed your excellent products previously. If this reminder is timed to perfection and comes in the form of an ultra-relevant ad, you can provide greater user convenience, boost loyalty, and increase customer lifetime value.
Step 5—Mix in Deep Learning, serve to taste
Power your Food & Beverage marketing campaigns with the best technology available. Deep Learning technology is the most advanced AI technology. It is a more powerful form of Machine Learning that can analyze several times more touchpoints and can self-calibrate and adapt as campaigns unfold. In less than a blink of an eye, Deep Learning algorithms can calculate the best route to users’ hearts (and stomachs) with highly personalized offers that bring more conversions and optimize the budget.
RTB House can serve up better results in the Food & Beverage Industry
RTB House is currently serving up better results in over 114 global Food & Beverage marketing campaigns, bringing a median conversion rate of 2.35% and 6.41 ROAS. Create a stronger appetite for your brand. Top the food chain with Deep Learning-powered ads from RTB House.
Visit our dedicated industry site and find out more: https://food.rtbhouse.com
