Ibotta's Second Annual State of Spend Report Finds Majority of Consumers Sacrificing Brand Loyalty when Faced with Increased Costs as CPG Marketers Deepen Investment in Digital Promotions
Ibotta's second annual State of Spend report reveals significant shifts in consumer behavior and CPG marketing strategies amidst economic pressures. 72% of shoppers report the economy directly impacting their grocery habits, with many opting for lower-priced alternatives. Key findings include:
1. Consumers spent an additional $302 on food and beverage essentials over the past year, cutting back on discretionary categories.
2. 75% of shoppers would try a different brand if offered at a lower price.
3. 70% of CPG marketers view private labels as the biggest threat to their brands.
4. Digital promotions are seeing increased investment, up 26% from 2023.
5. 67% of CPG marketers prioritize new customer acquisition over retention.
The report underscores the growing importance of digital promotions in building brand loyalty and value for cost-conscious consumers.
Il secondo rapporto annuale State of Spend di Ibotta rivela significativi cambiamenti nel comportamento dei consumatori e nelle strategie di marketing dei beni di consumo confezionati (CPG) in mezzo alle pressioni economiche. Il 72% degli acquirenti riporta che l'economia influenza direttamente le loro abitudini di spesa per generi alimentari, con molti che optano per alternative a prezzo inferiore. I risultati chiave includono:
1. I consumatori hanno speso 302 dollari in più per gli alimenti e le bevande essenziali nell'ultimo anno, riducendo le categorie discrezionali.
2. Il 75% degli acquirenti proverebbe un marchio diverso se offerto a un prezzo più basso.
3. Il 70% dei marketer CPG considera i marchi privati come la più grande minaccia per i loro brand.
4. Gli investimenti in promozioni digitali stanno aumentando, con un incremento del 26% rispetto al 2023.
5. Il 67% dei marketer CPG dà priorità all'acquisizione di nuovi clienti rispetto alla retention.
Il rapporto sottolinea l'importanza crescente delle promozioni digitali nel costruire la fedeltà al marchio e il valore per i consumatori attenti ai costi.
El segundo informe anual State of Spend de Ibotta revela cambios significativos en el comportamiento del consumidor y las estrategias de marketing de productos de consumo empaquetados (CPG) en medio de presiones económicas. El 72% de los compradores informa que la economía impacta directamente sus hábitos de compra de alimentos, con muchos optando por alternativas de menor precio. Las conclusiones clave incluyen:
1. Los consumidores gastaron $302 adicionales en alimentos y bebidas esenciales en el último año, reduciendo las categorías discrecionales.
2. El 75% de los compradores probaría una marca diferente si se ofrece a un precio más bajo.
3. El 70% de los comercializadores de CPG ve a las marcas privadas como la mayor amenaza para sus marcas.
4. Las promociones digitales están viendo un aumento en la inversión, con un incremento del 26% con respecto a 2023.
5. El 67% de los comercializadores de CPG priorizan la adquisición de nuevos clientes sobre la retención.
El informe subraya la creciente importancia de las promociones digitales en la construcción de lealtad de marca y valor para los consumidores conscientes de los costos.
Ibotta의 두 번째 연례 소비 지출 보고서는 경제적 압박 속에서 소비자 행동과 소비재(CPG)의 마케팅 전략의 중대한 변화를 드러냅니다. 72%의 쇼핑객이 경제가 자신의 식료품 구매 습관에 직접적인 영향을 미친다고 보고하며, 많은 사람들이 저가 대안을 선택하고 있습니다. 주요 발견 내용은 다음과 같습니다:
1. 소비자들은 지난 한 해 동안 식음료 필수품에 $302를 추가로 지출하고, 재량 지출 카테고리는 줄였습니다.
2. 75%의 쇼핑객이 더 낮은 가격으로 제공된다면 다른 브랜드를 시도할 의향이 있습니다.
3. 70%의 CPG 마케터는 자사 브랜드에 대한 가장 큰 위협으로 프라이빗 라벨을 보고 있습니다.
4. 디지털 프로모션에 대한 투자 증가가 있으며, 이는 2023년 대비 26% 증가한 수치입니다.
5. 67%의 CPG 마케터는 고객 유치보다 신규 고객 확보를 우선시합니다.
이 보고서는 비용을 절감하는 소비자들을 위한 브랜드 충성도 구축과 가치 제공에서 디지털 프로모션의 중요성이 증가하고 있음을 강조합니다.
Le deuxième rapport annuel State of Spend d'Ibotta révèle des changements significatifs dans le comportement des consommateurs et les stratégies de marketing des produits de consommation emballés (CPG) face aux pressions économiques. 72% des acheteurs rapportent que l'économie influence directement leurs habitudes d'achat alimentaires, de nombreux consommateurs optant pour des alternatives moins chères. Les principales conclusions sont les suivantes :
1. Les consommateurs ont dépensé 302 $ supplémentaires en aliments et boissons essentiels au cours de l'année écoulée, réduisant ainsi leurs dépenses discrétionnaires.
2. 75% des acheteurs essaieraient une autre marque si elle était proposée à un prix inférieur.
3. 70% des marketeurs CPG voient les marques de distributeurs comme la plus grande menace pour leurs marques.
4. Les investissements dans les promotions numériques augmentent, en hausse de 26% par rapport à 2023.
5. 67% des marketeurs CPG privilégient l'acquisition de nouveaux clients par rapport à la fidélisation.
Le rapport souligne l'importance croissante des promotions numériques dans la construction de la fidélité à la marque et de la valeur pour les consommateurs soucieux de leur budget.
Der zweite jährliche State of Spend Bericht von Ibotta zeigt signifikante Veränderungen im Verbraucherverhalten und in den Marketingstrategien von Konsumgütern (CPG) unter wirtschaftlichem Druck. 72% der Käufer berichten, dass die Wirtschaft direkt ihre Einkaufgewohnheiten beeinflusst, wobei viele sich für preisgünstigere Alternativen entscheiden. Die wichtigsten Erkenntnisse sind:
1. Verbraucher gaben im vergangenen Jahr zusätzlich 302 Dollar für Lebensmittel und Getränke aus, während sie in den diskretionären Kategorien Einsparungen vornahmen.
2. 75% der Käufer würden eine andere Marke ausprobieren, wenn sie zu einem niedrigeren Preis angeboten wird.
3. 70% der CPG-Marketer sehen private Labels als die größte Bedrohung für ihre Marken.
4. Investitionen in digitale Promotionen nehmen zu, mit einem Anstieg von 26% im Vergleich zu 2023.
5. 67% der CPG-Marketer priorisieren die Akquisition neuer Kunden über die Kundenbindung.
Der Bericht unterstreicht die wachsende Bedeutung digitaler Promotionen beim Aufbau von Markenloyalität und Wert für kostenbewusste Verbraucher.
- Digital promotions investment increased by 26% from 2023, indicating a shift towards more effective marketing strategies
- 75% of shoppers are willing to try different brands at lower prices, presenting opportunities for market share growth
- 78% of shoppers are more likely to return to stores offering cash back, suggesting potential for increased customer loyalty
- 50% of CPG marketers believe digital promotions will be a higher priority in three years, indicating future growth potential
- Marketers are focusing on incremental sales and customer lifetime value as key success metrics, aligning with long-term business goals
- 72% of shoppers report the economy directly impacting their grocery spending habits, potentially reducing overall consumer spending
- Consumers are spending less on discretionary categories like personal care, pet care, and health products, which could affect sales in these sectors
- 70% of marketers view private labels as the biggest threat to their brands, indicating increased competition
- Fewer people are shopping at least once a week (77% in 2024 vs 80% in 2023), potentially reducing overall sales volume
- 74% of grocery purchases are repeat purchases, making it challenging for new brands to enter the market
Insights
The 2024 State of Spend report reveals significant shifts in consumer behavior and CPG marketing strategies. 72% of shoppers report the economy directly impacting their grocery habits, with many opting for lower-priced alternatives. This trend is forcing brands to focus on customer acquisition and brand building to combat private label competition.
Key findings include:
- Consumers spent an additional
$302 on food and beverage essentials over the past year 75% of shoppers would try a different brand if offered at a lower price70% of marketers see private labels as the biggest threat to their brand- Digital promotions saw a
26% increase in spending growth
These trends suggest a challenging environment for established CPG brands, but also highlight opportunities for those who can effectively leverage digital promotions and value-based strategies to attract and retain customers.
Ibotta's report provides valuable insights for investors in the CPG and retail sectors. The shift towards value-seeking behavior among consumers presents both risks and opportunities. Established brands may face pressure on margins as they compete with private labels, potentially impacting their financial performance. However, companies that effectively utilize digital promotions could see improved customer acquisition and retention rates.
The increased focus on customer lifetime value (LTV) and incremental sales as key performance metrics suggests a potential shift in how companies may report their financial results and growth strategies. Investors should pay attention to:
- Changes in market share between branded and private label products
- Effectiveness of digital promotion strategies in driving sales and customer retention
- Impact on profit margins as companies invest more in promotions and customer acquisition
Overall, this report indicates a dynamic and competitive landscape in the CPG sector, with potential for significant shifts in market leadership based on companies' ability to adapt to changing consumer behaviors.
DENVER, Sept. 24, 2024 (GLOBE NEWSWIRE) -- Ibotta, Inc. (NYSE: IBTA), the leading technology company providing digital promotions and performance marketing solutions, today released its second annual State of Spend report providing a comprehensive look at spending trends among U.S. consumers and consumer packaged goods (CPG) marketers alike. According to the study,
Ibotta’s findings are based on responses from more than 5,400 survey participants, including grocery shoppers and CPG brand marketers, and underscore the importance of utilizing promotions as an effective tool for creating long-term brand loyalty and value for shoppers –
“This year’s State of Spend highlights the ongoing consumer struggle to overcome the compound effects of years of high grocery prices and stagnant shopper budgets, leading to growth in lower-cost private label brands,” said Bryan Leach, founder and CEO of Ibotta. “If shoppers take an exit ramp to a private label product, brands understand that the cost of inaction is steep. As they think strategically about how to win consumers back, digital promotions have proven to be one of the most cost effective and immediate solutions for growing market share.”
Key findings from Ibotta’s 2024 State of Spend research include:
State of Spend: U.S. Grocery Shoppers
- Consumers are spending more on essentials – and less on everything else. Shoppers reported spending an additional
$302 on food and beverage essentials over the past year – causing people to cut their spending in more discretionary categories like personal care/beauty (down$9) , pet care (down$5) , health, (down$5) , and cleaning/household (down$3) . Within food and beverage, the categories with the biggest declines in year-over-year purchases may also be seen as discretionary: alcohol (down8% ), plant based meat/dairy (down5% ), snacks (down4% ), and frozen foods (down3% ).- Regardless of product necessity, more than half of consumers report switching to a less expensive alternative if something they normally buy has an increased price.
- Shopping habits have evolved to meet budget and time constraints. Significantly fewer people are shopping at least once a week (
80% in 2023, down to77% in 2024), with the presence of a rewards or loyalty program being the top deciding factor for shoppers when choosing a grocery store.- Even though average monthly spend on household staples is flat year-over-year,
60% of consumers believe they are spending more this year compared to last.70% say inflation has negatively impacted their household finances in the past 12 months, and72% agree that the economy has a direct impact on their grocery spending habits, specifically.
- Even though average monthly spend on household staples is flat year-over-year,
- Decision-making at the grocery store tends to be influenced most by price, quality, store sales and familiarity, respectively. This makes it harder for brands to get in the door with new consumers, as
74% of grocery purchases are repeat purchases (compared to26% which are new).- Brands have an opportunity to encourage trial by using competitive pricing and promotional strategies.
75% of shoppers say they will try a different brand if it is offered at a lower price than what they usually buy, while64% agree that price is more important than brand name. - Grocery stores and retailers can tap into shoppers' desire for value by offering promotional rewards to drive repeat business and sales.
78% of shoppers say they are more likely to return to a grocery store if they offer cash back, and75% are more likely to buy more items if they can redeem a promotional offer.
- Brands have an opportunity to encourage trial by using competitive pricing and promotional strategies.
State of Spend: CPG Marketers
- Investment in digital promotions is on the rise – but their potential remains untapped. Digital promotions lead spending growth across tactics (up
26% from 2023), with a marked rise in use for early-stage engagement specifically (up13% from 2023). However, there is a 12 point disconnect between how marketers and consumers perceive the positive brand value of promotions (64% and76% respectively), suggesting marketers may be underestimating their power. 70% of marketers agree that the biggest threat to their brand is private label, driving the strategic focus on building brand equity, differentiating their offering, and expanding their customer base.- Marketers’ top two priorities for measuring success are incremental sales and customer lifetime value (LTV), beating out other metrics such as market share, payback period and customer acquisition cost.
- Incremental sales (
70% ) and LTV (68% ) are the most common things marketers contemplate when evaluating success of their marketing initiatives. - More than two-thirds (
67% ) of CPG marketers say bringing new customers on board is more important than retaining current customers. 50% of the CPG marketers surveyed believe digital promotions will be even more of a priority for them three years from now.- All marketers, regardless of current usage, agree that digital promotions will continue to rise in importance, with
82% agreeing they will be an important part of future strategy for their brand.
- Incremental sales (
A comprehensive look at the report can be found here.
Methodology
CPG marketing data in this report are as of August 8, 2024. Informing the data in this report is an online survey of 422 CPG marketers at a CPG company or agency that works with CPG companies conducted by Ibotta during July 24 – August 8, 2024. Consumer marketing data in this report are as of June 23, 2024. Informing the data in this report is an online survey of 5,006 grocery shoppers in the general US population, representing the population across age, gender, and income conducted by Ibotta during June 14 – June 23, 2024.
About Ibotta ("I bought a...")
Ibotta (NYSE: IBTA) is the leading provider of digital promotions for CPG brands, reaching over 200 million consumers through a network of publishers called the Ibotta Performance Network (IPN). The IPN allows marketers to influence what people buy, and where and how often they shop – all while paying only when their campaigns directly result in a sale. American shoppers have earned over
Contact
Corporate Communications
Hilary O’Byrne, hilary.obyrne@ibotta.com
FAQ
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