Family Dollar joins a crowded retail media marketplace
Family Dollar has become the first dollar store to launch an ad network to support placements across its mobile app and FamilyDollar.com. The move puts the dollar store chain in a line of other retailers trying to mimic Amazon.com’s ad sales success.
A video promoting the network, called Chesapeake Media Group, points to data showing that consumer packaged goods (CPG) digital spend is expected to grow by over 16 percent in 2021, and 73 percent of that spend is expected to be on mobile.
The service promises CPG brands the ability to target the approximately 14 million users registered in the Family Dollar Smart Coupons program with contextually relevant messages at the point-of-purchase across Family Dollar’s nearly 7,900 stores. Key strategies include promoted items, category takeovers, brand experiences, premium advertisements, coupon placements and push notifications, along with performance analytics.
“Brands will be able to directly reach millions of families across America through a variety of digital options,” said Richard McNeely, chief merchandising officer at Dollar Tree, the parent of Family Dollar, in a statement.
Family Dollar joins Walmart, Target, Home Depot, Instacart, Kroger, CVS and Walgreens in starting or ramping up their sell-side advertising in recent years as Amazon builds on its position as the third largest online ad platform.
Last year, Amazon’s share of the U.S. digital ad market grew to 10.3 percent from 7.8 percent in 2019, according to eMarketer. Amazon is particularly gaining share on Google, which had a 28.9 percent share compared to Facebook’s 25.2 percent. Amazon’s share is expected to reach 11.9 percent by 2022 as trade spending and shopper marketing follow the general consumer shift to e-commerce, and will be aided as well by its investments in NFL-broadcast rights and its ad-supported video properties.
A recent Digiday article said that, despite the glut of newer retail media inventory, budgets continue to prioritize Amazon and Walmart because they have become trusted platforms.
A report from Criteo, an ad firm specializing in online retargeting, however, posits that brands are seeking out alternatives. “Now may be the time for brands to take advantage of lower prices and better placements with other retail partners where the competition is less stiff,” according to the report.
- Dollar Tree, Inc. Introduces Chesapeake Media Group, Its Retail Media Network, Connecting Brands with Shoppers in Real Time – Dollar Tree
- Chesapeake Media Group – Dollar Tree
- Amazon’s share of the US digital ad market surpassed 10 percent in 2020 – eMarketer
- Amazon Surpasses 10 percent of U.S. Digital Ad Market Share – The Wall Street Journal
- Your Guide To The Retail Media Ecosystem – Adweek
- The big guys are winning’: Digital media budgets prioritize Walmart, Amazon despite a glut of retail media inventory – Digiday
- Target turns to advertising opportunities as its core retail business thrives – RetailWire
- Can Walmart beat Amazon, Facebook and Google at the online ad game? – RetailWire
DISCUSSION QUESTIONS: Do you see demand growing for specialized ad platforms, such as Family Dollar’s, or is there only room for a small number of key players in this market? Do you see the marketing dollars going to retail media shifting CPG messaging from brand building to sales promotion?