What's Happening?
Liquid Death, a brand known for its irreverent marketing campaigns, is focusing on a strategic media approach to drive sales. The company collaborates with Ibotta, a mobile app that aggregates sales data from retailers like Dollar General and Walmart,
simplifying the data collection process. This partnership allows Liquid Death to avoid direct negotiations with multiple retailers, streamlining its operations. The brand faces challenges in connecting media investments to store sales due to its indirect sales model, as it does not sell products directly to consumers. Traditional methods like marketing mix modeling can take months to yield results, and return on ad spend does not measure incremental sales generated from ad campaigns.
Why It's Important?
The strategic media approach adopted by Liquid Death highlights the evolving landscape of consumer packaged goods (CPG) marketing. By leveraging data from Ibotta, Liquid Death can make informed decisions about media spending, potentially increasing sales efficiency. This approach is crucial for CPG companies that do not have direct access to consumer purchase data. The ability to measure incremental sales and adjust media investments accordingly can lead to more effective marketing strategies, benefiting both the company and its retail partners. As CPG companies continue to navigate indirect sales models, innovative data-driven strategies like Liquid Death's could become more prevalent.
What's Next?
Liquid Death plans to continue refining its media strategy, potentially expanding its use of data analytics to further enhance sales. The brand's upcoming Super Bowl 60 ad buy indicates a commitment to high-profile marketing efforts. As Liquid Death continues to grow, it may explore additional partnerships or technologies to improve data collection and analysis. The success of these strategies could influence other CPG companies to adopt similar approaches, potentially reshaping industry standards for media investment and sales measurement.
Beyond the Headlines
Liquid Death's approach underscores the importance of data-driven decision-making in modern marketing. The brand's ability to connect media investments to sales outcomes could lead to more efficient use of marketing budgets across the industry. Additionally, the focus on increasing purchase frequency among existing customers rather than solely acquiring new ones highlights a shift in marketing strategies that prioritize customer retention and loyalty.
