Shoppers’ Reprioritized Sense of Self Care Leads to a Rise in DIY Pet Grooming

When hair and nail salons temporarily closed their doors during shelter-in-place ordinances earlier this year, Americans looking to maintain their personal care routines had little choice but to adopt a do-it-yourself (DIY) approach to beauty and self care. But this trend didn’t stop at the human consumer level. As shoppers became more invested in their DIY routines, many pet owners placed an added importance on maintaining their pet’s health and hygiene at home, especially when temporary (and some permanent) business closures left consumers with few other options.

Personal Pet Care Enters the Spotlight 

More than 11 million U.S. households adopted a pet during the pandemic, according to the American Pet Products Association’s (APPA’s) “COVID-19 Pulse” study. This sparked notable sales growth across all pet care categories (i.e., pet supplies, pet food and pet treatments). Pet supplies have been the fastest-growing category in pet care throughout the pandemic and pet grooming has been one of the fastest growing segments within the category.

In tune with consumers’ recently developed DIY health and beauty habits, pet parents haven’t limited their efforts to themselves, as many have familiarized themselves with at-home pet grooming this year. While the sales growth rates for grooming necessities like brushes and combs, grooming supplies, shampoo and conditioner have slowed since the peak purchasing period back in May, sales remain substantially above pre-COVID levels, with total pet grooming sales up 27.4% since the outset of the pandemic. This far outpaces the 3.2% growth generated by the total pet care category.

As shoppers stocked up on what was newly deemed essential, increases in the average number of units purchased per shopping occasion and average spend per buyer contributed to pet grooming category growth. In addition to driving increased grooming sales, the pandemic has boosted household penetration by 5.1% across all Nielsen tracked channels during the 52 weeks ended Oct. 31, 2020.

But there’s still a massive opportunity for retailers and brands to capture new buyers. According to the APPA’s 2019-2020 National Pet Owners Survey, over 106 million households own a cat or dog, but Nielsen Homescan data shows that only 12.3 million households purchased pet grooming products in the year ended Oct. 31, 2020. To drive increased adoption, brands need to educate consumers on the importance of personal pet care with comprehensive deliverables that inform shoppers on how to maintain their pet’s health. By offering pet-friendly products that make clear connections between consumers’ reprioritized sense of self-care and pet personal care, brands and retailers will be able to tap into the large segment of households that have yet to purchase within the pet grooming category.

Online Captures the Majority of Pet Grooming Purchases

Pet care products had strikingly high omnichannel adoption rates before the pandemic. However, as COVID-19 pushed more than 18 million Americans toward the online CPG landscape for the first time, e-commerce accounted for more than half (53%) of all pet grooming dollar sales between April and September 2020, up 11 percentage points compared with pre-COVID levels. Within this 53% figure, roughly 5% of e-commerce purchases were fulfilled via click-and-collect, but click-and-collect sales heavily declined after the peak pandemic purchasing period in May. By offering exclusive in-store savings, special click-and-collect promotions, in-store product education and contactless payment and pickup methods, retailers can entice online shoppers to visit brick-and-mortar stores and convert additional sales.

Pet grooming shoppers will become further entrenched in their online shopping habits into the ‘new normal’ and e-tailers need to enhance their customers’ shopping experience through easy-to-use personalization tools as consumers continue to seek out convenience. While pet shoppers continue to shift toward the omnichannel landscape, retailers need to create comparable experiences both in-store and online by providing diverse product assortments, offering promotional sales and price points to accommodate different budgets and educate consumers on pet personal care needs. Retailers should focus on their omnichannel capabilities and make products available through multiple vehicles like home delivery, subscription services, click-and-collect and curbside pickup—all of which will become even more appealing amid rising COVID-19 cases.

Personal care brands are offsetting losses through pet product lines

The total pet grooming category has consistently seen substantial growth throughout the pandemic, and private label brands continue to dominate as much as 75% of total dollar share in some subcategories. Given the lack of diversity in products and brands, consumers looking to cater to their pets at home are limited in terms of innovation, and it’s possible that not all shoppers’ needs are being met. 

More human-centric personal care brands are entering the pet grooming space, with Hempz, Wet Brush and Waterpik all releasing successful pet product crossovers. Many of the top pet grooming brands got their start in human beauty and personal care, including Burt’s Bees and CHI, and these brands have experienced highly accelerated growth as consumers stocked up on at-home pet care. Outside of the health and beauty care space, tool manufacturer Dremel has expanded its expertise into pet grooming with a nail grooming kit. With an “if it’s good enough for me, it’s good enough for my dog” mindset, pet owners have shown that they’re highly inclined to purchase grooming products for their pets from brands that they trust for their own personal use.

These aforementioned brands, traditionally known for their human products, experienced steep sales declines in beauty and personal care throughout the pandemic. Their pet grooming product lines, however, helped insulate a great deal of those losses and capture growth from an entirely new shopper segment. Beauty and personal care brands looking to enter the pet grooming space will be able to attract pre-existing customers to their pet product lines as they seek out familiar, trusted brands for their furry family members. As the outlook for beauty and personal care remains bleak, moving into pet grooming products can capture additional dollars from DIY-lovers looking to care for their pets at home. 

Pet brands need to take advantage of the growth in DIY and get consumers excited about taking care of their pet’s grooming needs at-home. The majority of pet owners have yet to purchase within the pet grooming space, and retailers and brands need to offer easy-to-use, comprehensive product kits that satisfy a variety of grooming needs as consumers familiarize themselves with at-home pet care. In addition, brands and retailers need to teach consumers about the benefits of routine, at-home pet care and make clear connections between their reprioritized sense of self care and pet care. 

Time-Saving Tips, Checklists, and Templates to Conquer Content Marketing Goals in 2021

As a gift to our tribe of weary content marketing warriors, we compiled our favorite time-saving tips, productivity checklists, and useful templates. We hope these will help you start the year energized and prepared to conquer 2021. Continue reading

The post Time-Saving Tips, Checklists, and Templates to Conquer Content Marketing Goals in 2021 appeared first on Content Marketing Institute.

COVID-19 Fuels a 50% Increase in Omnichannel Shopping Across the U.S.

The COVID-19 pandemic has democratized e-commerce for all types of consumers, and over 18 million CPG buyers (and counting) in the U.S. have flooded the online space since March. Online shoppers have been mirroring their purchasing within the channel to their constantly shifting, pandemic-related needs and are becoming further entrenched in their shopping behaviors. 

But not all online engagement leads to an online purchase. For many, online channels are a key means to compare prices, research new products and find physical stores, giving way to a full-blown explosion of true omnichannel shopping. In fact, new Nielsen Connect data shows that FMCG omnichannel shopping has increased by 50% this year, with nearly half leading to e-commerce purchases. 

When examining consumers’ levels of engagement across channels, 56% of online shoppers put careful consideration into each purchase at the point of sale in September 2020, compared with 51% of brick-and-mortar shoppers. Online shoppers became more invested than their brick-and-mortar counterparts in searching for the best product to fit new needs and, as a result, increased planning efforts for online grocery purchases into the new normal. When examining planning levels for in-store food purchases, rates of purchase planning dipped below pre-COVID levels by September 2020. And as brick-and-mortar shoppers eased up on planning efforts, impulse purchasing for food and non-food products increased slightly across offline channels.

The TV Buying Journey: Any Way You Want It

Recent innovations in TV are providing more valuable options to the ad buying process and promise to improve the consumer experience. Advertisers now have many choices when it comes to advertising. From new streaming platforms to rapid innovation in advanced TV, advertisers now have more ways of getting in front of audiences in an addressable way and networks have the ability to unlock more premium inventory.

As the TV space becomes more complex, it’s important to demystify the different types of ad buys. The optimal TV mix is what fits your agenda, and a multitude of TV mix choices can actually provide new ways to maximize your assets and provide the greatest flexibility. Just as other industries have evolved over time, TV is going through a rebirth, shifting from traditional TV to incorporate many of the benefits of (and avoid the drawbacks of) digital media driven by the innovations in ad tech.

TV ad buying today spans a medley of the new and tried-and-true, falling into three main categories: traditional TV, digital video and addressable TV. Each has its own set of values on either side of the buying equation. The good news is that you can weigh each according to your specific needs and combine approaches to fit your goals. 

Traditional TV 

Traditional TV orders are what linear programming has been transacted on since TV’s inception. Agencies typically buy most of the TV advertising on behalf of advertisers, defining who they want to target based on age and gender surrogates. In the past, nearly 60%-80% of national ad spots were sold at the spring upfronts; inventory is also purchased in scatter during the TV season, as well as locally. But in recent years, the age-old system of TV buying is in flux.  

National TV ads are sold manually through broadcast, cable and syndicate networks, while local TV ads are sold through the local broadcast and cable operators. Traditional TV orders are transacted on a standard currency basis using GRPs (gross rating points) and impressions. It’s a common misconception that GRPs are no longer relevant in an addressable or digital video world, when in fact they are key to understanding reach and frequency and are used to negotiate price. Impressions are used in traditional TV for both delivery and billing. As long as advertisers care about reach and frequency as well as exposures, then GRPs and impressions will be a part of the TV ad buy for many decades ahead. That is why both impressions and GRPs are being used more and more by advertisers when measuring and comparing campaign performance across traditional, digital video and addressable alike.  

The upside of the traditional TV buy for buyers is that they can reach wide audiences with one order in a very trusted, transparent and safe environment. On the downside, audiences are determined based on age and gender proxies, which means that many of the impressions are going to viewers who are not in an advertiser’s refined target. Traditional TV orders are also largely manually placed and sealed with a handshake rather than heaps of paperwork. This is a long-standing practice that has earned its place driven by trust.  

Digital Video 

Digital video gained significant traction in the early 2000’s and grew up with different values and processes. Digital video ads are dynamically inserted across essentially unlimited digital properties, some of which are premium and viewed as a valued TV set, based on refined audiences. Delivery is flexible and completed in real-time using various serving technologies, and validation of delivery is based on impressions. 

Digital video is primarily bought and sold using DSPs and SSPs in an automated fashion. Digital video can be highly accountable, but lacks a single trusted syndicated measurement source allowing for comparison across the sea of available options. Because there is no syndicated measurement today that allows for a full view of the marketplace, there is no real currency.  

If the traditional TV order is the handshake, digital video insertion order (IO) is the signature on the dotted line. A digital video IO is more formal than what is typically done on the TV side. Despite its name, the digital video IO does not come with the automation we typically associate with the term “digital.” Instead, it requires manual negotiation and careful consideration of things like ad tax, fraud and viewability due to the number of players in between the content source and the end consumer.  Most importantly, the IO acts as the terms and conditions for all parties and ultimately keeps everyone honest. 

Addressable TV 

Even with the above options, the market is looking for better ways to leverage technology and data to deliver more value to programmers, marketers and consumers on large portions of inventory. Marketers have expressed two key messages as a result of COVID-19 conditions on their investments: more accountability and more flexibility. 

Addressable TV has been in the beginning stages of evolution for many years and is finally at a tipping point where potentially large portions of premium TV content can apply advancements in technology and measurement to meet the marketplace needs. At this critical point, the ecosystem needs ways to combine the best of traditional TV and digital video to bring to market the best of both worlds. 

Before diving into how addressable TV is transacted, it’s important to first clarify what we mean by “addressable TV.” Addressable TV is the ability to define an audience and only have those audiences see the advertisement regardless of the way that content is received. Addressable TV is being deployed in several ways, including using a set-top box to refine cable network programming that is watched with a pay TV subscription, using smart TVs to refine broadcast and cable network programming in any way a smart TV displays this content, whether over the air, via MVPD, or even via streaming and OTT options. 

With addressable TV technology being deployed for linear and on-demand viewing options, the sell and buy sides will aggressively seek options to unify all of their options. Sell-side players are looking to optimize yield and track performance in-flight instead of after a campaign is over. This not only makes their inventory more appealing to buyers, but also much easier to manage and maximize yield against a constrained inventory source. Buy-side players are looking to understand where their most desired audiences are consuming content across the array of viewing options and the best way to reach them simply, transparently and in the most economical way to meet their objectives. 

Overall, addressable TV offers more accountability, granularity, more targeted audience buying, the potential for more automated inventory management tools and automated yield optimization. 

Sell/Buy Side Implications by Ad Buy Type

In the end, there is no right answer when it comes to the TV ad buy. It all comes down to a simple math problem: How are you going to make more money? Both the sell side and buy side are trying to move products (commercial inventory and branded products respectively) and both need to determine the right mix of TV. The answer may be different for everyone. All three ad buys options have implications on the total available pool of impressions and yield, so you need to choose what’s right for you. 

By embracing the new and changing TV order options, you can build the best version for yourself and ensure you are not missing out on the opportunities of innovation that could truly redefine the way you consider TV in the years ahead.