Performance-based marketing to grow your Grocery company.
What is Grocery Marketing?
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.
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:
- 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.
- 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.
- 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.
- 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.
- 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
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
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
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
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
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.