ClickZ Pet Products Newsletter - 09.19.2024

PLUS: Fospha's Digital Marketing Trends in 2024 + the Impact and Opportunity from Rising Costs of Pet Ownership

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ClickZ
September 19, 2024 • Estimated Reading Time: 6 minutes

Specialty Bites 🍪

Nutro

Welcome to the wild world of pet food, where even Fido gets a taste of the farmers market! Host Lindsay Beaton, along with Trones Hunter Ellis and Robin Yontz, dives into the booming realm of private-label pet food. They explore the economics of branding and the fickle nature of consumer loyalty. Spoiler alert: store brands are on the rise, and your dog's kibble might just be the next big thing.

Meanwhile, TikTok Shop is making waves, with 37% of U.S. users buying through the platform in 2023. Social media's role in spreading rumors and shaping consumer behavior can't be ignored. Kristy Boulos, COO of Matrix Partners, emphasizes the need for market research to stand out in the crowded pet product space. Higher prices are a bummer, but focusing on value and data can make marketing more effective.

Innovafeed is shaking things up with its "Powered by Hilucia" cobranding, partnering with Jiminys and Arch to launch insect-based dog foods. These sustainable ingredients aim to highlight environmental and nutritional benefits. And let's not forget the HMB Healthy Muscle & Strength granules, designed to keep your pup's muscles in top shape.

In the end, distinguishing between humanization and anthropomorphism is crucial for pet food formulation and marketing. Pet owners may say one thing in surveys, but their purchases often tell a different story. So, next time you're at the pet food aisle, remember: it's a jungle out there!

@thierry.ydlibi

Rising costs threaten US pet ownership by impacting pet food affordability and market dynamics. Vegan pet food innovations and premium product demand are growing, yet novel launches decline. Market research is crucial for branding. Despite inflation, brands like Meow-Mix and Milk-Bone show growth, highlighting evolving consumer preferences.

Heather Govea, the new CEO of Carnivore Meat Company, brings decades of pet food industry experience. She emphasizes the importance of quality nutrition and community support. Govea's main focus is expanding consumer awareness of freeze-dried pet food benefits. Her career highlights include transformative roles and building meaningful industry relationships.

J.M. Smucker remains committed to dog snacks and cat food despite inflation. The company plans product innovations for 2025, with Milk-Bone and Meow Mix leading growth. Despite a 9% drop in pet food sales, segment profit rose 42%. Inflation impacts discretionary spending, but optimism remains high.

Performance Platters 🍽️

Fospha's latest report, "The State of E-Commerce H2 2024", reveals crucial trends that will shape your marketing strategy. What's inside:

  • 📱 How the major platforms' KPIs have trended in 2024, and where you should be investing. 

  • 🚀 How to access Paid Social's huge scaling potential. 

  • ✨ The most effective Google channel of 2024.

  • 🎯 Full-funnel strategies for Meta, TikTok and Snapchat

Let's break down the platform-specific insights: 

  • TikTok: Emerging as a powerhouse for efficient new customer acquisition 

  • Meta: Maintaining strong performance with competitive CAC 

  • Snapchat: Experiencing rapid growth, particularly effective during peak shopping periods 

"These findings underscore how impactful platforms like Meta, TikTok and Snapchat continue to be for driving sales - yet how underinvested they remain. It's incredible to see that brands can triple spend in Paid Social before becoming unprofitable. Success now lies in diversifying across the entire funnel, understanding the nuances of each platform, and continuously optimizing to unlock more scaling potential." 

Jamie Bolton, VP Growth at Fospha

WPP and Coca-Cola topped the 2024 Cannes Lions creative charts, with Coca-Cola winning 17 awards. WPP was named Creative Company of the Year. Heineken and Apple followed in the rankings. The United States was the most creative country. The LIONS Creativity Report highlights impactful creativity driving growth.

Shopify partners with Roblox to integrate in-game shopping, allowing brands to sell physical items directly within the game. This collaboration targets Roblox's 80 million daily users, with a full launch in 2025. Shopify's president highlights the endless possibilities, emphasizing the future of immersive commerce in the digital world.

Ad spend in 2024 is set to rise, driven by retail media, value-based messaging, political ads, and CTV monetization. The IAB projects an 11.8% increase, with retail media leading due to high CPG and beauty spend. AI in search could further boost Q4 advertising.

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