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Home / Grocery Advertising Agency Digital Marketing

Grocery Advertising Agency Digital Marketing

Performance-based marketing to grow your Grocery company.  

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What is Grocery Marketing?

People purchasing grocery from a store, Grocery Advertising Agency .
Image Source: Unsplash Dennis Siqueira

The average Grocery business in the United States makes $14 million per year in revenue. Grocery Marketing is the process of promoting the business to increase that number or removing obstacles causing the ROI to be low. This can include paid social ads, paid search ads, local ads, radio ads, TV ads, or traditional ads. 

Most Grocery companies struggle with various factors, such as an expensive workforce, finding adequate experts in each area, producing new creative content fast enough, and overseeing all aspects efficiently of their digital marketing. Let our team of Grocery digital marketing and advertising experts manage the groundwork it takes to grow your Grocery company. If you want to increase sales for your Grocery stores business, please contact AdvertiseMint.

“Every Grocery business pays for advertising. You either pay for advertising or you pay in lost revenue to your competitors.” – Brian Meert, CEO, ADVERTISEMINT

Popular ways to increase revenue for Grocery companies.

A grocery market, Grocery Advertising Agency.
Image Source: Wikipedia

Increasing revenue in the grocery industry involves a combination of strategies that cater to changing consumer preferences and market dynamics. Here are five factors that can boost revenue in the grocery industry:

  1. E-commerce and Online Shopping: Embracing e-commerce and online shopping platforms can significantly boost grocery store revenue. The convenience of ordering groceries online, especially during the COVID-19 pandemic, has driven a surge in online grocery shopping. Offering a user-friendly website or app, efficient delivery or pickup options, and a wide product range can attract more customers and drive sales.
  2. Personalization and Customer Loyalty Programs: Implementing customer loyalty programs and personalized shopping experiences can increase revenue. By collecting data on customer preferences and shopping habits, grocery stores can offer tailored promotions, discounts, and product recommendations. These efforts enhance customer loyalty and encourage repeat business.
  3. Fresh and Local Products: Consumers are increasingly seeking fresh, locally-sourced, and organic products. Grocery stores can increase revenue by partnering with local farmers and suppliers to offer a wider range of fresh and unique items. Promoting the quality and origin of these products can attract health-conscious and environmentally-conscious consumers.
  4. Omnichannel Retailing: Implementing an omnichannel retailing approach allows customers to seamlessly shop both online and in physical stores. This integration provides convenience and flexibility, encouraging customers to engage with the brand through various channels. Offering click-and-collect services, where customers can order online and pick up in-store, can drive more traffic and revenue.
  5. Sustainable Practices: Sustainable and eco-friendly practices, such as reducing food waste, minimizing plastic packaging, and energy-efficient operations, resonate with today’s environmentally-conscious consumers. Grocery stores that adopt sustainable practices not only appeal to this growing consumer segment but also reduce operating costs and increase efficiency, ultimately boosting revenue.

Grocery Industry Facts

Average Revenue for Grocery Industry: $14 billion 

Average Profit Margin for Grocery Industry: 1 –  3%

Average Employees for Grocery Business in the US: 72

Average ROI for Grocery Industry: 1 – 3%

Average Growth Rate for Grocery Industry: 2.5 –  3.0%

Total number of Grocery companies: 63,348 

Average CPC on Google for Grocery Business: $2.00

Grocery Paid Social Ads

Customers at grocery and meat store, Grocery Advertising Agency.
Image Source: Unsplash Jacques Bopp

Paid social is a powerful way to help reach consumers interested in Grocery products or services. Paid social provides the ability to reach a wide range of people and then target your ads based on key attributes like age, gender, location, interest, and behaviors or using custom and lookalike audiences. Paid social ads are the leading advertising option to reach consumers on mobile devices. Paid social is also typically less expensive than other forms of advertising, making it a powerful combination. However, the pricing for paid social can increase as you get more targeted or if your ads appear irrelevant by the ad platform algorithm. The most popular paid social ad platforms are: 

  • Grocery Facebook Advertising
  • Grocery Instagram Advertising 
  • Grocery TikTok Advertising 
  • Grocery Snapchat Advertising
  • Grocery LinkedIn Advertising
  • Grocery YouTube Advertising
  • Grocery Twitter Advertising
  • Grocery Reddit Advertising
  • Grocery Pinterest Advertising

Grocery Paid Search Ads

Paid search is the most efficient way to reach consumers actively searching for Grocery products or services. Consumers often search the internet for questions about where they are in the buying cycle. A general search would indicate they are just beginning to research companies. A specific search would indicate that the consumer is knowledgeable and close to selecting or purchasing. Grocery delivery services advertisers can bid specifically on the most valuable keywords for their business, which helps them appear above their competitors for the most profitable keywords. Paid search ads are generally used for lead generation, local awareness, or e-commerce. Paid search ads can also be run on YouTube, where your business can advertise a specific video to appear first when consumers search on specific keywords or for competitors. The most popular Grocery-paid search ads are: 

  • Grocery Stores Google Ads 
  • Grocery Delivery Service YouTube Ads 
  • Grocery Warehouse Microsoft Ads 
  • Grocery Superstores Amazon Ads 
  • Grocery Wal-Mart Ads 

Grocery Local Ads

Different types of grocery at display at a store, Grocery Advertising Agency.
Image Source: Unsplash nrd

Local ads are extremely important for grocery delivery services companies and are often overlooked because of the focus on larger ad platforms. Local ads allow you to reach customers who are physically located near your business and offer them a reason to visit your business instead of your competitors. Local digital ads typically include promotions, deals, or coupons and often align with your current business reviews on that platform. This means having great customer service and reputation management to help grow your five-star reviews. Other physical ads like billboards, digital billboards, bus, and metro ads allow you to ensure you are reaching customers located in your targeted area. The cost to reach a new local customer is often small compared to the lifetime value that customer will bring to your business. The most popular local ads for grocery companies are: 

  • Grocery Facebook Ads 
  • Grocery Delivery Service Google Local Ads 
  • Grocery Yelp Ads 
  • Grocery Superstore Nextdoor Ads 
  • Grocery Warehouse Billboard Advertising
  • Grocery Metro Ads
  • Grocery Bus Ads

Grocery Radio Ads

Consumers purchasing different vegetables, Grocery Advertising Agency.
Image Source: Unsplash Juan Gomez

Radio ads allow Grocery companies to reach a captive audience, often listening while commuting in the car, at the gym, or working. Radio ads allow you to talk directly to your customers and present. Radio ads are fixed in length and cannot be skipped, ensuring your audience will hear your message. Due to the passive nature of radio listeners, it’s essential to have optimized audio creatives and a large enough ad budget to ensure that the average listener is reached at the recommended frequency. It’s recommended when possible to use the radio personality to read your ads as they have built Some of the most popular Grocery radio advertising options are: 

  • Grocery Local iHeartRadio Ads
  • Grocery Superstore Spotify Ads 
  • Grocery Pandora Ads
  • Grocery Warehouse Club Podcast Ads 
  • Grocery National Radio Advertising
  • Grocery Talk Radio Advertising

Grocery Direct Mail

Direct Mail can be a powerful tool for Grocery companies to reach new and existing customers. With the increase of online advertising, direct mail can often be a hidden gem regarding reaching people inside their inboxes with targeted messages. Direct mail can be sent in mass with new automation tools and personalized before sending. The cost of direct mail often depends on the size of the mail (postcard vs. full-size letter envelope), and while postage can be purchased at bulk rates, it is still a rising cost to be considered. If you are interested in learning more about how your company can send out Direct Mail, please contact AdvertiseMint, and our team would be more than happy to walk you through the options. 

Grocery TV Ads

Fruits and vegetables at display at a store, Grocery Advertising Agency.
Image Source: Unsplash Frames for your Heart

There are several things that Grocery companies should be aware of when running TV ads. TV advertising for Grocery superstores can be targeted to users on a local level, which is perfect for a company with just one location, or can be shown on a DMA, state, or national level for companies that have multiple locations. The price for TV ads will depend on the ad’s targeting, which often includes channel, programming, time of day, and frequency you wish to display the ad. If you have exact requirements, expect to pay more. Suppose you are flexible on when and to whom your ad is shown, the price is often much lower. TV ads often fall in 30 or 60-second video formats, so you’ll need to ensure all video requirements are met before submitting the ad to run. Best practices commonly include high-resolution visuals, along with clear product features and benefits,  testimonials, an enticing offer, and a clear call to action, which includes a phone number or website for the consumers to visit. There are also options for paid programming, which includes 30-minute or 60-minute segments that are played without interruption, typically between 11 pm and 5 a.m. If you are interested in TV advertising for your Grocery company, please contact AdvertiseMint for more details and pricing. 

How important are reputation management and online reviews for Grocery companies?  

Every Grocery company knows that online reviews are essential for sales growth. In a digital world, online reviews on Google Local, Yelp, and many rating websites are used by your customers to validate your business and the products or services you provide. Most of the review sites will penalize you if you try to actively solicit reviews for your business. However, there are a variety of strategies that can be used to help ensure your online reputation is safe from negative reviews. In addition, you’ll need a plan to praise five-star reviews while professionally addressing lower reviews, which potential customers often read. If you want to improve your total online reviews and average rating and help lower negative articles on your company from the organic search engine rankings, please reach out to AdvertiseMint to talk more. 

Frequently asked questions about Grocery advertising and digital marketing

How much should a Grocery business spend on marketing and advertising each year?

An average Grocery Superstore business should spend between $1,050,000 and $2,100,000 a year on marketing and advertising expenses, or roughly 7.5% – 15% of annual gross revenue. The total amount may be higher if you are in a highly competitive industry, want accelerated growth or your business generates high revenue during the holiday shopping season. 

Why grocery companies typically outsource their marketing and advertising?

Grocery business owners are often heavily involved with the day-to-day operations of their business. Some of the most common challenges for a grocery business include: 

  1. E-commerce and Online Shopping: Embracing e-commerce and online shopping platforms can significantly boost grocery store revenue. The convenience of ordering groceries online, especially during the COVID-19 pandemic, has driven a surge in online grocery shopping. Offering a user-friendly website or app, efficient delivery or pickup options, and a wide product range can attract more customers and drive sales.
  2. Personalization and Customer Loyalty Programs: Implementing customer loyalty programs and personalized shopping experiences can increase revenue. By collecting data on customer preferences and shopping habits, grocery stores can offer tailored promotions, discounts, and product recommendations. These efforts enhance customer loyalty and encourage repeat business.
  3. Fresh and Local Products: Consumers are increasingly seeking fresh, locally-sourced, and organic products. Grocery stores can increase revenue by partnering with local farmers and suppliers to offer a wider range of fresh and unique items. Promoting the quality and origin of these products can attract health-conscious and environmentally-conscious consumers.
  4. Omnichannel Retailing: Implementing an omnichannel retailing approach allows customers to seamlessly shop both online and in physical stores. This integration provides convenience and flexibility, encouraging customers to engage with the brand through various channels. Offering click-and-collect services, where customers can order online and pick up in-store, can drive more traffic and revenue.
  5. Sustainable Practices: Sustainable and eco-friendly practices, such as reducing food waste, minimizing plastic packaging, and energy-efficient operations, resonate with today’s environmentally-conscious consumers. Grocery stores that adopt sustainable practices not only appeal to this growing consumer segment but also reduce operating costs and increase efficiency, ultimately boosting revenue.

Because grocery businesses are so focused on these challenges, it often becomes very efficient to bring in outside experts to help manage and ensure specific tasks are done correctly. Marketing and advertising are two of the most commonly outsourced areas businesses use because they are so critical to the business’s success. 

What are the most popular grocery advertising objectives?

Grocery Lead Generation 

Many grocery companies are focused on generating leads. This can include building an internal email list for marketing purposes or generating high-value leads that can be quickly contacted to grow revenue. Lead generation typically involves creating a specific incentive, offer, or informational guide, then driving prospects to a landing page to collect their information. You can also collect the prospects information on a lead form hosted by the ad platform. Both options can be connected with your CRM or email marketing system so automatic calls, emails, and SMS messages are sent directly to your new prospect. If you want to help set up a lead generation for your grocery office, please contact the team at AdvertiseMint to discuss your options. 

Increasing Grocery Superstore Sales 

The most popular of all advertising objectives for grocery companies is sales. Increasing revenue is essential for every grocery company to succeed. Many ad platforms have new tools that allow you to pass through values for each customer, which means they associate more weight towards the customers spending the most. This allows them to find more customers like your top spenders. If you want to help grow your grocery delivery services, please contact the team at AdvertiseMint to discuss your options. 

GroceryStore App Installs

Perfect for any grocery business that has a mobile app. The mobile app objective allows you to run ads either for new app installs or for app events, which are specific events set up inside of your app, such as account creation, payment method added, or transaction complete. It can also monitor usage inside the app or if users are reaching a certain area. This allows you to display highly targeted ads that are relevant to each user who sees your ads. The most common types of apps are games, utilities, or informational mobile apps. If you want to help grow sales or usage from your grocery store mobile app, please contact the team at AdvertiseMint to discuss your options.  

Grocery Local Traffic 

Many grocery superstores have locations they are looking to drive local foot traffic to. This can be for a special event, promotion, grand opening, or daily usage. Local ads can be targeted down to a single zip code or a 1-mile radius around a spot on a map. This ensures you can reach the individuals that are located close to your grocery store location and get your ads in front of them. If you want to increase foot traffic for your grocery store location,  please contact the team at AdvertiseMint to discuss your options. 

Grocery Brand Awareness 

As your grocery company grows, it will become essential that you stay ahead of your competition. This is generally done by Brand Awareness campaigns, which focus on reaching a wide number of targeted users consistently over a long period of time. This ensures that your grocery superstore stays at the top of mind for your consumers, and they continue to purchase your products and services. If you want to increase your Brand Awareness, please contact the team at AdvertiseMint to discuss your options. 

Should grocery companies utilize content marketing to boost their advertising efforts?

By creating and distributing valuable, relevant, and consistent content, grocery brands can enhance their visibility, engage their audience, and ultimately drive growth. Let’s explore how grocery companies are utilizing content marketing to revolutionize their advertising efforts.

  • Educational Content for Shoppers: Grocery companies understand that today’s consumers are looking for more than just products; they seek information and solutions. Content marketing allows them to provide valuable resources such as cooking tips, nutritional advice, and meal planning ideas. By positioning themselves as sources of knowledge, these brands build trust and loyalty among their customers.
  • Recipe Inspiration: Recipes are a goldmine of content for grocery companies. Many customers are constantly searching for new and exciting recipes to try. Grocery brands can create and share recipe content that features their products as key ingredients. This not only encourages customers to purchase specific items but also showcases the versatility and quality of the brand’s offerings.
  • Seasonal and Holiday Promotions: Content marketing allows grocery companies to capitalize on seasonal and holiday trends. Whether it’s sharing ideas for Thanksgiving feasts or tips for a refreshing summer BBQ, aligning content with seasonal themes helps keep the brand relevant and top-of-mind during crucial shopping periods.
  • Healthy Living and Wellness: Health-conscious consumers appreciate content that supports their wellness goals. Grocery companies can create content around topics like mindful eating, organic options, and plant-based diets. By promoting healthy living, these brands position themselves as partners in their customers’ well-being.
  • Engaging Visuals: Visual content, such as videos and infographics, is particularly effective in the grocery industry. Brands can create engaging cooking tutorials, how-to videos, or visual guides for selecting the best produce. Visual content not only captures attention but also makes it easier for customers to follow along.
  • User-Generated Content: Encouraging customers to share their experiences with the brand’s products can be a powerful content marketing strategy. Featuring user-generated content, such as customer reviews, photos, and testimonials, adds authenticity and social proof to the brand’s image.
  • Sustainability Initiatives: Sustainability is a growing concern for consumers. Grocery companies can use content marketing to highlight their eco-friendly practices, such as reducing packaging waste, sourcing locally, and supporting ethical farming. Sharing these initiatives resonates with environmentally conscious customers.

How can grocery integrate AI and other advanced technologies into their marketing strategies?

The world has changed for grocery business, looking to increase their marketing and advertising efforts using AI. Various new tools now enable automation and AI to be used in areas like sales, graphic design, video production, content creation, voiceovers, spokesperson, video creation, blog writing, and more. 

What do grocery companies need to know about search engine optimization (SEO)?

The current average cost per click (CPC) on Google ads for the term “Grocery Industry” is $2.00 and is expected to increase over time. SEO generates these same clicks from targeted keywords for free. There is tremendous value from SEO as you can generate a high volume of traffic for your key business segments, however, SEO is a long-term investment. We recommend that grocery warehouse clubs companies should be willing to plan for 6-12 months of SEO services before expecting an increase in results from these efforts. Please know that with SEO, the work is foundational, which means each task builds on top of each other. Each action ads more credibility to your website in the eyes of Google and other search engines. AdvertiseMint only believes in high-quality SEO, or long-game efforts, when building SEO. Most SEO tricks or gimmicks often work for a bit but later end up hurting your grocery superstore business when updates are made to the search engines. The only way to move forward regarding SEO is by doing a lot of the right things and doing them faster than your competitors. grocery SEO involves three main areas. The first is onsite optimization, which means the pages of your website contain content and are optimized for the search engines. The second step is to build more topical authority around your business to help Google understand that you are an expert in the grocery area. This is done by writing consistent blogs between 500-2000 words on core topics relating to your business. The final area is off-site linking, which means other websites are linking back to your site and using specific anchor text. This can be achieved by public relations, outreach, and building relationships with other websites. When these three are done together, the result is that your grocery SEO will improve, and your organic ranking will start to increase, thus sending more traffic to your website. If you are looking to improve your SEO, please contact AdvertiseMint. 

Should grocery companies be doing Email Marketing?

Yes. Every grocery business should have email marketing and SMS marketing for their company. Email marketing has continually been proven to be one of the most profitable marketing channels for grocery companies. Email marketing allows you to reach your prospects and customers with specific messaging based on where they are located in your customer journey. These “flows” can be set up so that every person experiences the same informational process regardless of when they join. This ensures your company is communicating 24/7 with the people who are most interested in your grocery delivery services and products. SMS messaging is also becoming highly profitable for breaking through all the noise and reaching your most valuable prospects via text message. There are many rules regarding SMS marketing and how to add and remove people from your grocery SMS marketing. If you want to learn more about optimizing your Email and SMS marketing for your grocery company, AdvertiseMint is here and ready to help. 

Are there any advertising restrictions for grocery businesses?

Advertising restrictions for grocery businesses can vary by region and are often subject to specific regulations and guidelines. These restrictions are typically put in place to ensure consumer protection, fair competition, and the accurate representation of products and services. While the specifics can differ, here are some common areas where advertising restrictions may apply to grocery businesses:

  1. Food Labeling and Packaging Regulations: Grocery businesses must adhere to strict food labeling and packaging regulations. Advertising claims about nutritional content, health benefits, and product descriptions must be accurate and supported by scientific evidence. Misleading or false claims can result in fines and legal action.
  2. Health Claims and Nutritional Information: Claims about the health benefits of specific food products are subject to scrutiny. Businesses must ensure that any health claims made in their advertising are substantiated and comply with established guidelines. Misleading health claims can lead to regulatory action.
  3. Advertising to Children: Many countries have regulations in place to restrict the advertising of unhealthy food and beverages to children. These restrictions aim to address concerns about childhood obesity and promote healthier eating habits.
  4. Alcohol and Tobacco Advertising: If a grocery business sells alcoholic beverages or tobacco products, strict regulations often govern the advertising of these products. These restrictions can include age-related restrictions, health warnings, and limitations on where and how such products can be advertised.
  5. Organic and Eco-Friendly Claims: Claims related to organic, eco-friendly, or sustainable products must meet specific criteria and be certified by relevant authorities. Greenwashing, or making false environmental claims, can lead to legal repercussions.
  6. Price and Discount Advertising: Businesses must accurately represent their products’ prices, discounts, and promotions. Any deceptive pricing practices can result in penalties.
  7. Food Safety and Quality Standards: Advertisements that imply or directly claim that a product is safer or of higher quality than it actually is may be subject to regulatory action. Food safety standards and quality regulations must be met.

Where can I find examples of other grocery ads?

You can find examples of grocery competitor ads online in several places. Here are the instructions for how to view competitor ads running on Facebook, Google, and TikTok ad platforms. 

View Grocery Competitor Facebook Ads 

  1. Go to Facebook Ad Library 
  2. Select the country where the ad appeared. 
  3. Select ad category (All, Politics, Housing, Employment, Credit).
  4. Search by keyword or advertiser.
  5. Review Facebook ads.

View Grocery Competitor Google Ads 

  1. Go to Google Ads Keyword Planner
  2. Sign into Google Ads.
  3. Click ‘Tools and settings’ in the top nav.
  4. Click ‘Keyword Planner’ under the ‘Planning’ heading.
  5. Click ‘Discover new keywords’
  6. Type a relevant keyword into the box.
  7. Click ‘Get Results’
  8. Review Top of page bid and Google ads. 

View Grocery Competitor TikTok Ads 

  1. Go go TikTok Ad Library 
  2. Select ad target country 
  3. Select ad type.
  4. Select ad published date.
  5. Enter in the desired keyword or advertiser.
  6. Hit search. 
  7. Review TikTok ads. 

How do grocery companies measure the success of their marketing and advertising?

For most companies, revenue is the KPI (key performance indicator) we monitor when determining whether marketing and advertising efforts are successful. The revenue can be used to determine the ROI or ROAS for your campaigns over a set period of time. ROI (Return on Investment) is calculated by subtracting the initial cost of the investment from the final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100. ROAS (Return on Ad Spend) is determined by dividing the total revenue by the total ad spend for a specific period of time. 

In addition to revenue, other companies may use metrics such as CPL (Cost Per Lead), CPA (Cost per Acquisition), or CPI (Cost per Installs) for mobile apps. Monitoring these costs over time can help understand factors increasing or decreasing these numbers. They can be affected by various factors, such as landing page optimization, time of the year, and competitors. 

For companies interested in branding and spending over $100,000 on advertising, many digital ad platforms offer a tool called the brand lift study. This study is used to measure the impact on the perception of your brand when running ads. A brand lift study splits a specific audience into two groups. The first group is shown your ads over a specific period of time; the second group sees none of your ads. At the end of the study, users in both groups were shown a survey by the ad platform. The difference between the first and second groups is called the brand lift, or the increase of consumer awareness of your brand due to running advertising. 

Who is the best grocery advertising agency?

Advertisemint is the best grocery marketing agency. Our team of grocery advertising experts has proven experience in the grocery industry. We bring a full-service team of expert account managers, copywriters, graphic designers, video editors, and media buyers ready to help you implement your marketing strategy and grow your grocery business.

Request a FREE 30 Minute Strategy Call
Hurry, There are only a limited number of FREE spots remaining for June.

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