WPP - The Modern Grocery Run
WPP - The Modern Grocery Run
WPP - The Modern Grocery Run
CONVENIENCE
What Consumers Really Value About the Modern Grocery Run
INTRODUCTION
Online grocery has been a juggernaut. In the three years
since the start of the pandemic, the modern grocery run
has changed shape significantly. Today’s consumer splits
their grocery trip between in-store and online in a fluid
fashion, while marketers scramble to adjust in real-time.
They’re asking questions like: “When will online
grocery’s growth level out? What will be the ultimate
balance between in-store and online? How should we
tailor our marketing for the online space?”
64% 65%
ONLINE GROCERY 62%
55%
GROWTH & MOMENTUM
By 2033, 2 out of 3 consumers will do more than
half of their grocery shopping online.
44%
40% 41%
~85% 19%
of 2021 consumers did the same
amount of online grocery
I havebeen
been ordering I haveI have
beenbeen
doing it once
shopping or more in 2022
I have been
I have ordering online I have
ordering online been doing
doingit itonce in I Ihave
have only started
I haveonly started buying
only started
online regularly
regularly forthan
for more more
12 in aonce
while
in afor moore
while than
for more buying
buying groceries
groceries within
within
regularly for more than 12 a while for more than 12 groceries within the last 12
than months.
12 months 12 months
than 12 months. the
thelast
last12
12 months.
months.
months months months
86%
Neither satisfied nor dissatisfied
4%
7%
SATISFIED
Somewhat dissatisfied
In 2022, 24% of respondents said they expected to buy strong customer satisfaction, the brands that tap into the
more than half of their groceries online within a year. By full-funnel marketing capabilities that online grocery offers
2023, that number went up to 42%, an increase of 75% in will be at an advantage.
just one year. With such a healthy YoY increase and such
At these points in the future, what percentage of your grocery shopping will be
online? (change from 2022)
<25%
24-49%
50-74%
75-100%
OF MY SHOPPING
OF MY SHOPPING
OF MY SHOPPING
OF MY SHOPPING
While consumers remain optimistic about the future of and you can summon a grocery cart full of items to your
online grocery, the opportunity still exists for marketers
door by lifting no more than your index finger. If you are a
to reimagine the ways they intercept, grab attention or consumer on a mission, whose time is at a premium, online
‘surprise and delight’ online consumers to deliver the
is a no-brainer – search, click, add to cart, job done.
ONLINE GROCERY
SHOPPING WINS ON
CONVENIENCE BENEFITS
30%
Saves me time
66%
34%
Is easier
61%
43%
Better overall value
50%
49%
Is more personal
46%
49%
Is more reliable
45%
In-store Online
Volunteer
40% Get together with a friend
I want to do (do something fun, or relax, etc) VMLY&R Commerce Pathfinder (Jan 2023)
I need to do (other chores, etc) N = 2200
6 AM - 9 AM 9 AM - 12 PM 12 PM -5 PM 5 PM - 8 PM After 8 PM
ACTION
consumers can do more of. Online platforms and the
brands that sell through those indirect benefits can
play an empowering role in consumers’ lives by
REFRAME CONVENIENCE
making a connection to the downstream benefits of
AS EMPOWERMENT greater convenience.
CASE STUDY: CONSUMERS GET This year, Michelob ULTRA teamed up with Instacart to run a
co-marketing campaign during the playoffs. This
THEIR PLAYOFF ESSENTIALS partnership included activations both on and off the
Instacart app to grab consumers attention and make
WITHOUT MISSING A SECOND Michelob ULTRA the drink of choice for the playoff season.
We can also drill down into how people are shopping by category
to find that relevance. For example, in categories like feminine
care and childcare, respondents indicate a growing desire to
shop online, which tees up brands to invest in becoming more
discoverable and relevant. Working with platforms that are
investing in growing new verticals, and increasing discoverability
on center of store are optimal partners in growing basket size.
MULTI-TASKING EXACERBATES
ATTENTION GAP
81% 61%
MULTI-TASK I BOUGHT WHAT
WHILE SHOPPING I BOUGHT LAST
ONLINE TIME
PRO-TIPS
Instacart makes it easy for advertisers to set up campaigns based on their top
objectives. See the cheat sheet below to easily understand what Instacart offers:
Reach: Be seen by the consumers
Engage: Get consumers to interact Maximize Sales: Get consumers to
you want
with your brand
purchase your products
• Products include display ads, • Products include shoppable • Sponsored product is the best
shoppable display ads and display ads and shoppable
format for driving sales
82%
out. That means going beyond banners – look for platforms
that offer opportunities like shoppable ads off the site, live
streaming, conversational commerce, rich video and more. Or
collaborate on an entirely new format. We are in a new era of LIKE WHEN THE APP
creative commerce, where being transactionally efficient is RECOMMENDS PRODUCTS
not sufficient – brands must engage emotionally.
SURPRISE AND
Our research showed that inspiration and information are both possible
DELIGHT THROUGH and welcome online, so long as they are relevant. For instance, 83% of
‘HUMANIZATION’ respondents would be ‘open to more suggestions about new products’.
PRO-TIPS
Shoppable display and video ads on Instacart are creative The add-to-cart functionality makes that inspiration
banners or videos that have “add-to-cart” functionality. The shoppable and allows marketers to curate the exact
creative content gives marketers the opportunity to tell a products the consumer needs to bring that moment to life.
story or deliver a message using something like lifestyle Consider harnessing the power of shoppable display and
photography or video so that consumers can imagine video ads to focus on not just what the consumer wants to
themselves enjoying those products in their own lives. buy, but how they want to buy it and why.
As volume shifts from in-store to online, we need to For more information about WPP’s strategic
find ways for brands to connect with consumers partnership with Instacart, please contact Doug
Chavez - VP, Global Strategic Partnerships, WPP
digitally as well as physically. Since consumers are
[email protected]
convenience as empowerment will win sales and Jon Bird, VMLY&R Commerce