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March 10, 2023

Marketing Brew

Vimeo

Happy Friday! With the news that Lady Gaga will not be performing at the Oscars this Sunday, we feel it’s an appropriate time to share that we will also not be performing, due to scheduling issues. We thank you for your understanding.

In today’s edition:

—Ryan Barwick, Minda Smiley, Andrew Adam Newman

TRENDS

Name brand < Private label

an image from a Kroger ad showing an animated man looking @ Kroger brand peanut butter Kroger via iSpot

This year’s AFC Championship Game had everything—Joe Cool, a hold-your-chest, game-winning field goal, and…Kroger-brand peanut butter?

That’s right. Kroger, the largest supermarket operator in the country, spent $2.5 million, per iSpot estimates, on an ad that emphasized the brand’s own private-label products, about one-fifth of what Kroger spent nationally in 2022. “When you get proven quality at lower-than-low prices with Kroger brand products, it feels like you’re winning,” the ad’s voiceover said.

It wasn’t the first time Kroger advertised during an NFL game. However, this game was a shot at the Super Bowl for the Bengals, the home team for the Cincinnati-based grocer, Marisa Cranswick, integrated media strategy lead at Kroger, said. “The stars aligned,” she told us.

Big picture: It also comes at a time when private labels are having a moment. Many shoppers have turned to them in response to inflation, according to a recent IRI report. Retailers have responded, expanding their private-label offerings and looking to “lure cost-conscious shoppers,” according to the Wall Street Journal.

  • Kroger CEO Rodney McMullen said during the company’s Q4 earnings call that the “quality and value proposition” of the retailer’s private-label portfolio, which it calls Our Brands, “is especially important when inflation is affecting so many of our customers’ lives.”
  • “We will continue expanding Our Brands to more categories with innovative product offerings,” he said, noting that sales in the category grew 10% year over year.
  • It isn’t small peanuts—Kroger made almost $28 billion in sales from its private-label brands alone in 2021, according to the retailer, which brought in nearly $140 billion in sales that year. Suffice to say, the brand probably could have bought a Super Bowl commercial, had it been interested.

Private labels, specifically food and drink products, generally represent 18%–19% of sales in the grocery industry overall, according to John Owen, associate director of US food and retail at Mintel.

“It’s a big chunk,” he said. “Why would a retailer promote their private labels? Because private label is really profitable versus national brands.”

Keep reading here.—RB

        

FROM YOU

Upvote?

Jennifer Aniston saying Friends/NBC via Giphy

Last week, we asked if you think marketers will spend more on Reddit advertising this year. You were pretty much split: Out of more than 500 responses, 40% said yes and 39% said no, while the rest weren’t sure.

That’s not exactly surprising: Reddit, which is expected to go public this year, is a platform that marketers are interested in but might not be totally sure how to navigate. As Elliott Millard, head of planning at Wavemaker UK, told Digiday: “Reddit straddles an awkward space between social media, blog, forum, and community interest site,” making it tough for advertisers to “put it in a neat box.” And brands don’t want to end up with a Reddit campaign that goes…sideways.

Though Reddit has a smaller user base than platforms like TikTok and Instagram, The Information recently reported that last year, “ad spending by big advertisers on Reddit rose 31% over 2021, according to Standard Media Index.” For comparison, Meta experienced a 22% bump, while Snap saw a 16% increase.

“Reddit has been working really hard to get advertisers to take it seriously as an ad platform, and that hard work is now starting to pay off,” Jasmine Enberg, principal analyst at Insider Intelligence, told The Information.

This week’s poll: Are you going to SXSW? If not, reply to this email and tell us why.

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TOGETHER WITH VIMEO

Who’s bringing the popcorn?

Vimeo

Calling all marketers and creatives! It’s time to take your love of video and content to Austin, TX, for a week of legendary learnin’ and partyin’. That’s right: SXSW is here again, so let’s feast our eyes and ears on visionary storytelling and innovation.

This year, Vimeo’s got an itinerary that’ll light up your creative ambitions. From March 10–14, they’re celebrating the 15th anniversary of Vimeo Staff Picks with agency mixers, marketing workshops, film industry happy hours, and their very own coffee-filled hangout, Studio Vimeo. 

The cherry on top? Vimeo’s rolling out the big shots for some link ’n builds. Industry leaders like Mark Molloy, Derick Rhodes, Ina Pira, and Meghan Oretsky will lead sessions on immersive storytelling, and once the lights come up, they’ll stick around for some mingling. 

It’s showtime. Sign up for a private session today.

RETAIL

If the shoe fits

An animation shows a 3D scan of a pair of feet. Fleet Feet/Volumental

You’ve probably used a Brannock Device, even if you didn’t know what it’s called. Invented in 1925, it’s the gizmo that measures foot length and width. Although revolutionary at the time, and still popular in stores, more sophisticated measuring devices are challenging the device’s supremacy.

One gaining, in every sense, a foothold in shoe retail is a 3D foot scanner from Volumental, a Stockholm-based startup whose retail partners include Hoka, Red Wing Shoes, and New Balance.

To see one in action, on a recent morning, I headed to an NYC Fleet Feet, the running store that has been using the devices since 2018 in its locations, which today number about 260.

And what I’d learn would be more than just the dimensions of my feet. Among the device’s biggest selling points are ancillary benefits, including capturing customers’ email addresses and reducing returns. Read the full story on Retail Brew.—AAN

        

TOGETHER WITH VIMEO

Vimeo

A fest for the reel heads. Consider yourself an auteur? Vimeo’s got the perfect event for you. They’re celebrating the 15th anniversary of Vimeo Staff Picks at SXSW from March 10–14 with one-on-one sessions led by Vimeo pros, talks from industry leaders, and tons of opps to build with other creators. Join here.

FRENCH PRESS

French press

There are a lot of bad marketing tips out there. These aren’t those.

Copy that: TikTok shares insights on which keywords are resonating best in ads.

Check, mate: Trying to get verified on Instagram? Review the verification process here.

All about me: How to build your personal brand on LinkedIn.

EVENTS

NYC’s marketing event of the year

NYC’s marketing event of the year

Get in a room with industry experts from some of your favorite organizations for a day of non-stop networking, knowledge-sharing, keynotes, and more at The Brief, a one-day marketing summit in NYC. You’ll walk away with real ideas you can put to work immediately.

Buy my ticket!

WHAT ELSE IS BREWING

  • Dick’s Sporting Goods has debuted its largest brand campaign to date.
  • Meta is “exploring a standalone decentralized social network for sharing text updates,” a spokesperson told TechCrunch.
  • The US Army is rebranding as it faces “the most challenging recruiting landscape in decades.”
  • Roku plans to sell its own smart TVs exclusively at Best Buy.

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AD FRAUD ANSWER

4. No changes to the red carpet. Good news for anyone who wants to try ranch ice cream.

         

Written by Ryan Barwick, Minda Smiley, Andrew Adam Newman, and Katie Hicks

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