How Alcohol Brands Can Activate Retail Media

How Alcohol Brands Can Activate Retail Media

A study of alcohol sales across 16 US states revealed a spike in sales for spirits, beer, and wine during the first lockdown. The surge in monthly sales came around the same time that government regulations forced people to stay indoors and place all orders online. Since then, eCommerce platforms like Instacart have excelled at incorporating alcohol brands into retail media.

For both brands and shoppers, alcohol is slightly more complicated than the average grocery list. From legal regulations to district-wise availability, there are some steps to ensure a smooth shopping experience.

With St. Patrick’s Day just around the corner, festive demand is bound to increase along with the search for the perfect beverage. In 2021, Guinness beer searches went up by 70% during this time, while alcohol sales skyrocketed by 150%. This blog is your guide to impactful advertising for your alcohol brand all year long.

Getting Started with Alcohol Advertising on eCommerce Platforms

Despite the decline in alcohol ad spend in 2020, Forbes predicts beverage alcohol eCommerce sales to cross $42 billion across key markets by 2025. This year is a great opportunity for brands to capitalize on this increase in demand. With the right strategy, you could set yourself up for a profitable year, especially around festive seasons.

Pacvue talked about alcohol in retail media a few months ago, highlighting the importance of good content for better sales. The blog covered all the information you need to display to attract new shoppers and convert them into loyal consumers.

Search is going to continue being the most popular start to shoppers’ journey in 2022, so optimizing your PDP or product detail page is key. Data shows around 12-15% of Instacart users purchase alcohol on a monthly basis. Such a motivated target market is very promising for your brand.

How to Accelerate Growth with Retail Media

There are many tactics using which you can take a hesitant shopper and walk them through an easy buying experience. Here are some of the most efficient ways:

  • Offer detailed product information - Your shoppers should not feel confused about your product, as that can drive away sales. Be clear with all the details, such as its taste notes, variety, and attributes like flavor.
  • Go beyond traditional descriptions and offer quick recipes, easy mixers, a fun fact, or anything else to get your shopper’s attention. The longer they are on your product page, the more likely they are to make the purchase.
  • In the age of social media, consumer reviews are very powerful. Having a high rating with positive feedback from previous buyers is one of the leading factors in new shoppers clicking “buy”.

All eCommerce platforms offer their share of features for brands to add their spin on, so you can take advantage of all available boxes and use them to push your products efficiently. Based on the region, different alcohols will have varying degrees of popularity. Their CPCs and ROAS will also depend accordingly. This Zenith report covers 3 categories: beer, wine, and spirits.

Instacart Advertising for Your Alcohol Brand

Platforms with paid retail media opportunities for alcohol include Instacart, Drizly (recently acquired by Uber), and GoPuff. They offer featured products, delivery promotions, coupon codes, and package deals as ways to attract shoppers.

Instacart also recently partnered up with CellarTracker and Distiller to display detailed descriptions, suggest pairings, and offer same-day delivery. Such an immersive shopping experience has helped skyrocket sales, and statistics show that Instacart alcohol delivery reaches over 85 million households across more than 17,000 partner stores in the U.S. today.

To get started with advertising your alcohol brand on Instacart, you can opt for one of the campaign structures the platform offers for your campaign. Creating multi-tiered offers with the suggested keyword categories lets you choose the most effective campaign based on your budget.

What makes Instacart one of the easiest platforms for alcohol brands to start with is its auto campaign feature. The platform asks you details about your business and then chooses the most relevant keywords for you. Easy access to deep insights helps you understand the most effective adjustments to your investment for better visibility and performance.

Key Takeaways

With traditional customs and public drinking taking back seats, forming direct bonds with your consumers, and pushing online sales is the way to a profitable 2022. This analysis of the alcohol advertising industry by IWSR breaks down the trends in 2021 and their predictions for 2022 as well.

An interesting insight into the US market shows how 48% of consumers say the company’s sustainability and environmental initiatives positively influence their purchase decisions. Even as the industry is recovering, it's important to prioritize eCommerce advertisements to build a brand image.

By uncovering top decision drivers and creating a hyper-focused advertising strategy, you can get a head start for a massively profitable year ahead.

Amazon DSP Advertising can enhance shopper engagement and drive traffic directly to a brand or product detail page.
by 
Matt Abbruzzese

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