ClickZ Pet Products Newsletter - 11.07.2024

PLUS: Stella & Chewy’s New Platform – Direct-to-Consumer Advantage 💻

Author

Priscilla Soedarpo
November 07, 2024 • Estimated Reading Time: 7 minutes

Editor’s Pick 👑 

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

Pawsome Bites 🍪

CULT Food Science Corp.

Further Foods Inc., a subsidiary of CULT Food Science Corp., has introduced Noochies Immune Sprinkles, a novel supplement aimed at enhancing immune, gut, and digestive health in pets. Launched on October 24, this powdered supplement is crafted with premium ingredients, including Bmmune, a high-protein nutritional yeast, and Bflora, a probiotic blend. Designed as a food topper, it offers pre-, pro-, and postbiotics to reduce inflammation and support digestive health, all while being free of animal-based ingredients. This innovation marks a significant step in pet nutrition, reflecting a growing trend towards sustainable and functional pet products.

The Immune Sprinkles are the inaugural product in the Sprinkles line, with plans to expand the range in November. Upcoming products include Joint Boost Sprinkles, featuring animal-free glucosamine and DHA from algae, and Wellness Sprinkles, which incorporate Bflora, seaweed, and fruit powders for antioxidant benefits. These additions aim to provide comprehensive health benefits, including joint support and overall vitality, underscoring the brand's commitment to high-quality, sustainable pet nutrition.

Mitchell Scott, CEO of CULT Food Science, emphasizes the company's dedication to delivering superior nutrition through innovative products. The Immune Sprinkles are now available on the brand's e-commerce platform in the U.S. and Canada, with expanded distribution across 26 online channels, including Ebay and Shein, reflecting a strategic push to broaden market reach and consumer access.

Stella & Chewy's launched a direct-to-consumer e-commerce site, offering nearly 100 raw pet food products. This move caters to the growing trend of online shopping among pet owners. The platform aims to enhance customer relationships and provide easy access to trusted nutrition, complementing existing retail partnerships.

Pure Treats Inc. has acquired Bar W Foods & Eighteen Below Partners LLC, enhancing its product line with 18 Below's human-grade meat processing and freeze-drying expertise. This strategic move aims to meet the rising demand for high-quality, raw, freeze-dried pet treats, benefiting both companies and their customers.

Carnilove

Carnilove's new campaign, featuring a Czechoslovakian wolfdog, promotes its premium pet food in UK cinemas and online. The ads highlight Carnilove TrueFresh's quality, using fresh meat, and aim to boost brand awareness. Running alongside major film releases, the campaign targets dog and cat lovers nationwide.

Pet food brands thrive on consumer trust. Despite inflation, spending on pet food rises across income levels. Brazil's innovation and focus on safety drive growth. Vegan pet food gains interest. Marketing should target values over demographics. Sustainability investments continue, with cultivated proteins leading industry advancements.

Leading Voice📣

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Pulse 📈

Ad prices fell in Q3 2024, impacting ad spend growth in search and social. Retail media saw a click surge, while new formats outpaced traditional channels. Amazon DSP and Google Performance Max showed significant growth. Lower prices increased ad volume, especially in retail media's purchase funnel.

To navigate rising holiday advertising costs, diversify your strategy by incorporating platforms like TikTok, YouTube, and Connected TV. These channels offer competitive pricing and reach new audiences. Focus on user-generated content and platform-specific strategies to optimize engagement and conversions, ensuring a successful holiday marketing campaign.

Front Row, an acceleration company, helps brands optimize e-commerce strategies on platforms like Amazon. By leveraging Deal Days, brands can boost sales and visibility. Success requires planning, unique offerings, and nurturing customer loyalty. Effective SEO and affiliate marketing are crucial for sustained growth and maximizing long-term benefits.

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