Retail Media’s Civil War: How Fragmented Budgets Are Undermining FMCG Success

Recently, I found myself in the garden with my children, gazing up at the night sky to witness a rare planetary alignment. As we marvelled at the perfect harmony of celestial bodies - Mars, Jupiter, Venus, Saturn all visible with the naked eye (Uranus and Nepture also visible with telescope) - I couldn’t help but draw a comparison to my professional world. In the realm of FMCG marketing, alignment is often more elusive than the planets themselves.

The fragmentation of budgets and the conflicting objectives between different stakeholders stand in stark contrast to the cosmos’ synchrony. Brand managers, national sales managers, and shopper marketing teams each play crucial roles in driving a brand's success, yet their priorities often pull in different directions. This disconnect not only hampers cohesive strategy execution but also risks inefficiencies that can undermine overall business performance.

Diverging Objectives

Brand managers and marketing teams are primarily tasked with building equity for the brand. Their focus lies in creating compelling campaigns that drive awareness, enhance purchase intent, and establish a long-term emotional connection with consumers. For these teams, media investments are a strategic tool to shape perceptions, often measured by metrics such as reach, view through rates, viewability, and brand lift.

In contrast, national sales managers and shopper marketing teams are deeply entrenched in the realities of retail environments. Their objectives are far more transactional: increasing volume sales, securing prime shelf space, and delivering immediate ROI through in-store promotions. The budgets they control are often viewed as a necessary cost to appease retailers, almost akin to a “tax on the cost of sales”. Consequently, these teams prioritise activities such as trade discounts, point-of-sale displays, and retailer-specific promotions and/or advertising over broader brand-building efforts.

Misaligned Incentives

This divergence in priorities leads to several inefficiencies. For one, the lack of alignment can result in disjointed campaigns where brand messaging in national media is disconnected from promotional efforts at the retail level. Consumers might see a brand’s inspiring TV advert but find no corresponding offers or visibility in-store, creating a gap in the purchase journey.

Moreover, internal competition for budgets can create friction. Brand teams may view shopper marketing activities as diluting their efforts, while sales teams may perceive above-the-line campaigns as detached from the realities of driving sales. This tension often forces brands to make trade-offs that sacrifice long-term growth for short-term gains, or vice versa.

Reframing Shopper Marketing

Part of the solution lies in reframing how shopper marketing budgets are perceived within organisations. Rather than viewing these expenditures as a “tax”, they should be integrated into a broader strategy that connects brand equity building with sales activation. After all, effective shopper marketing is not merely about appeasing retailers but about influencing consumer behaviour at the critical point of purchase.

Digital innovation offers an opportunity to bridge these gaps. For example, technologies like digital sampling, via GreenJinn | B Corp™ , can seamlessly tie together above-the-line media campaigns with in-store promotions. A well-placed QR code in a TV advert or a strong CTA on a social media post can direct consumers to a digital coupon that’s redeemable in-store, creating a direct link between awareness and sales. Such solutions not only enhance measurement and attribution but also foster collaboration between brand and sales teams by serving shared objectives.

Towards a Unified Framework

To overcome fragmentation, FMCG brands must establish a unified framework that aligns the goals of all stakeholders. This involves:

1. Shared KPIs: Developing metrics that measure both brand-building and sales activation efforts. Metrics such as “total campaign ROI” or “reach-to-redemption rate” can provide a holistic view of performance.

2. Integrated Planning: Encouraging cross-functional collaboration during the planning phase to ensure campaigns are cohesive and mutually reinforcing.

3. Retailer Neutral Measurement: Leveraging retailer neutral tools that connect online and offline efforts, allow teams to measure the impact of marketing spend across the entire consumer journey.

4. Organisational Change: Promoting a culture of collaboration and mutual respect between departments. Regular forums or joint task forces can help break down silos and foster alignment.

Summary

So what does planetary alignment and retail media have in common? I was reminded of the beauty of synchronisation and how far the FMCG world has to go to achieve it. The fragmentation of marketing budgets and the differing objectives of brand, sales, and shopper marketing teams need not be an insurmountable challenge. By fostering alignment through shared goals, integrated planning, and innovative technology, FMCG brands can ensure their marketing efforts work in harmony rather than at cross purposes. Ultimately, bridging this divide is not just about operational efficiency; it’s about delivering a consistent and compelling experience for the consumer; the true north for any brand!