In Q1, PepsiCo announced a plan to increase marketing spend to counteract recent sales declines after losing market share to Coca-Cola. The strategy foreshadows the revival of the cola wars with a new focus on digital.

As CPG brands like Pepsi reallocate spend towards digital, grocers have an opportunity to capture some of the bounty, but the majority are ill-equipped to do so. Less than half of grocers serve display advertisements on the homepage, category pages, or product pages, according to Gartner L2’s Grocery Site Monetization report.

Grocery

Part of Pepsi’s strategy involves driving interest around Bubly, a new sparkling water offering that aims to appeal to health-conscious consumers. Over a quarter of PepsiCo desktop display advertisements feature Bubly in the creative. Amazon captures a significant share of spend: nearly all Bubly impressions during April drove shoppers to landing pages on Amazon, according to Gartner L2’s analysis. Furthermore, Pepsi pays for Bubly sponsored listings and headline ads on Amazon.

As CPG brands reallocate marketing spend towards digital, grocers must be ready to take advantage. By driving product visibility through display advertisements and sponsored listings, they can capture a significant share of spend.

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