I believe Amazon's next retail acquisition will involve a large C-store chain. Here's why.
Digital out of home (DOOH) ads are gaining popularity. See the chart below. (source: Statista)
Amazon's advertising business is continuing to eat into Google and Meta's share, but there's only so much ad real estate to sell. See the second chart below.
Amazon must continue to tap into new retail media placement opportunities to maintain this trajectory.
I recently sat in on a call with Amazon where we reviewed the growing opportunity to place these DOOH ads in Whole Foods.
The pitch was "Improve sales with eye-catching placements, and grow awareness."
Most brands are hesitant to spend these upper funnel dollars in such an open-ended, hard to measure format, and I share these hesitations. Turns out, there's an alternative approach to consider.
For challenger brands in the CPG space, I believe DOOH advertising dollars are better spent in a C-store ad outlet like 7-Eleven's Gulp Media Network instead of Whole Foods. Here's why.
✅ A survey conducted by NCSolutions highlights that 71% of consumers stumble upon new products while shopping at C stores, making them hotspots for brand discovery.
✅ C-store shoppers seek convenience and speed. In contrast, grocery shoppers are likely to carry out planned, bulk purchases. When decision making is sped up, this is an excellent time to convert new-to-brand audiences.
✅ New product attention is not as competitive in a C-store. C-stores typically have a limited selection, focusing on high-turnover items, whereas grocery stores offer a wide range of products.
✅ You might get information from a single customer in a grocery store 1x per week whereas with C stores, you’ll get purchase data 2-4x that same week. Thanks to their high volume of transactions, convenience stores benefit from a quick data refresh rate, providing up-to-date insights into consumer behavior. This stands in stark contrast to the more consistent, yet less frequently updated, consumer data from grocery stores.
✅ C-store DOOH tech investments are increasing, and recent case studies are showing promising results. OXXO, the largest retail chain in Latin America, joined forces with Intouch.com leading to the creation of Mexico's largest retail media network, enhancing both in-store experiences and brand prominence.
✅ Take a look at the brilliant breakdown of strategies from Jeffrey Bustos in the second picture below. If you're planning on activating in these channels, these are some essential considerations to make prior to your launch.
If this topic interests you, I'll link the full blog post in the comments. I dove into the data, existing case studies, and viability for challenger brands in saturated categories.
What do you think - will Amazon make a C store acquisition to anticipate the growing opportunity?
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