PepsiCo Beverages on testing and learning its strategy in a fragmented media landscape
Feb 6, 2024
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PepsiCo Beverages discusses challenges of marketing in a fragmented media landscape, focusing on streaming platforms, influencers, and ad measurement. They also explore data utilization, fragmentation challenges, the crumbling cookie, investments in digital platforms, and the use of AI in media and marketing.
The rise of CTV and the importance of measuring ad performance were highlighted in the conversation, emphasizing the need to find the right audience, deliver the right message, and optimize ad dollars.
Hanafi stressed the importance of privacy compliance and the use of first-party data for targeting and personalization, highlighting PepsiCo's data journey and the development of their internal solution, CDNA, to inform media planning and activation.
Deep dives
Navigating Fragmentation in Media Investment
The conversation with Katie Hanafi, Senior Director of Media Strategy and Investment at PepsiCo Beverages, focused on the challenges of navigating fragmentation in the media landscape. With numerous platforms to consider, such as streaming, social media, influencers, and retail media, Hanafi discussed the need to make smart and strategic decisions when allocating ad dollars. The rise of CTV (Connected TV) and the importance of measuring ad performance were also highlighted in the conversation. Overall, Hanafi emphasized the need to find the right audience, deliver the right message, and optimize the use of ad dollars.
The Importance of Measurement in Media Investment
Hanafi stressed the significance of measurement in media investment. With the growing number of platforms and channels, it has become challenging to determine the effectiveness of ad campaigns. Hanafi mentioned the internal tool utilized by PepsiCo, called ROI Engine, which provides data-driven insights to measure media effectiveness. She also discussed the need to balance efficiency and effectiveness, and the importance of driving meaningful connections with consumers through personalized and targeted ads.
Addressing Data and Privacy Challenges
Hanafi acknowledged the challenges posed by data and privacy issues in the media industry. She emphasized the importance of privacy compliance and ensuring the use of first-party data for targeting and personalization. Hanafi mentioned PepsiCo's data journey and the development of their internal solution, CDNA, which combines first-party and third-party data to inform media planning and activation. She also highlighted the need for partnerships and collaborations to make smarter data-driven decisions while maintaining consumer privacy.
Exploring Innovations and Experimentations
Hanafi discussed PepsiCo's focus on innovation and experimentation in media investment. She mentioned the PepsiCo Labs, a team dedicated to finding and exploring new tech solutions and startup partnerships. Some of the innovations mentioned include virtual product placement in influencer content and experimenting with AI to optimize digital buys. Hanafi also highlighted the importance of personalization at scale and keeping an eye on emerging trends, such as the creator economy and the integration of retail media networks with publishers.
Last year, PepsiCo Beverages was taking a test-and-learn approach to a fragmented video landscape. This year, with more ad-supported streaming platforms, most recently including Amazon Prime, the continued creator economy boom and more, there are more places than ever to advertise.
That fact is one of the things that keeps Katie Haniffy, senior director of media strategy and investment for PepsiCo Beverages, up at night, she said.
“The process has changed,” Haniffy said on the most recent episode of the Digiday Podcast. “Really, there’s probably three things that are going, ultimately, to impact our process.” That’s the booming creator economy, the rise of CTV and retail media.
On this episode of the Digiday Podcast, we caught up with Haniffy to talk about changes in the media landscape, how PepsiCo Beverages is keeping up with them and, of course, what measurement looks like in a fractured marketplace.
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