Just ahead of Groceryshop, Advantage Solutions and Instacart announced a new partnership aimed at transforming retail execution through real-time shelf visibility. The dynamic alert-based model blends advanced technology with in-store execution, leveraging data in innovative ways to generate actionable insights.
In many ways, the announcement was a compelling preview of several themes – pairing human insights with technology, optimizing operations, anticipating future trends – that would dominate conversations at the show throughout the week.
AI Usage Accelerating
The prevalence of artificial intelligence continues to proliferate across all facets of retail.
Shoppers are increasingly using AI as a way to stay within budget and make smarter purchasing decisions. Retailers are taking note, with some creating shopping assistants designed to solve real-life conditions, such as serving up all the elements that go into a child’s birthday party so online shoppers can easily fill their basket.
While brands leaning into geo-targeting and ingesting huge data sets isn’t new, some are taking a radically different approach to testing their strategy before going to market. One of the most futuristic concepts discussed at Groceryshop was the creation of digital twins, AI agents that simulate consumer behavior. By being able to query many different scenarios, brands are moving from reactive analysis to predictive modeling, allowing them to validate hypotheses, make quick refinements, move quickly to remain relevant and capitalize on cultural trends among key demographics.
AI is rewriting what’s possible, but the end user’s skill and the quality of data they use are key factors that drive differentiation. Human expertise, augmented with AI modeling, will allow them to project potential outcomes, all before putting up a display or running a promotion in store. Brands and retailers that have a stronger understanding of their shoppers’ buying patterns, segmented by life stage, will be better able to remain relevant and get their products into baskets.
Retail Media Networks: Connecting the Dots
The Interactive Advertising Bureau projects that retail media networks will eclipse $70 billion in the United States by 2026. What was previously seen as a “tax” is now being leveraged as a strategic asset.
“With advanced capabilities and flexible in-store options, brands can better understand their audiences and deliver solutions that connect upper-funnel awareness with in-store conversion,” said Will Clarke, senior vice president of business development at AMP, a full-service marketing agency at Advantage Solutions. “The integration of digital and physical experiences is key. Pairing digital storytelling with in-store activation drives measurable outcomes.”
After product costs, trade spend is the largest expenditure for manufacturers but many companies still struggle to track where these dollars go and how effective they are. The proliferation of RMNs are helping brands obtain greater visibility into spend effectiveness and driving measurable outcomes.
Content Creation: Nimble, real and Outcome Driven
When it comes to moving the needle on decision-making, shoppers increasingly look for resonant and relevant narratives. Traditional campaigns, with lengthy agency briefs and heavy scripting, are quickly giving way to more agile and authentic forms of advertising. This shift reflects a broader trend toward marketing that is rooted in a deep understanding of consumer behavior paired with the ability to creatively respond in the moment and tap into larger cultural narratives.
Advantage Marketing Partners (AMP), an Advantage Solutions Company, describes this blend of brand, creative, media, commerce, data and technology as Full Volume Impact™. It is advertising that addresses people at an emotionally human level while also leveraging research and data to drive conversion in the moment. Doing so provides a boost to traditional metrics, such as ROI, while also creating a larger narrative around where a brand or product fits into someone’s life. That’s a much more subjective and far-reaching measure than a quick campaign or promotion can likely achieve.
Peering into the future at GroceryShop
Consumer preferences are shaping the future of retail while data, the increasing sophistication of AI and the reach of retail media networks are changing the landscape. That pace of change is only increasing and, as discussed throughout Groceryshop, the trendline is pointed towards more authentic shopper experiences and greater operational efficiency guided by human expertise.
As the industry continues to evolve, partnerships like the game-changing retail execution model between Advantage Solutions and Instacart are emblematic of what a more responsive, data-driven, customer-centric future can look like. For both brands and retailers, the time to innovate is now.
