Shopper Marketing in Canada: Where Data Meets the Aisle

Shopper Marketing in Canada: Where Data Meets the Aisle

In Canada, six in ten consumers still prefer brick-and-mortar stores, according to KPMG. That same report found that 57% of Canadians are more motivated by a good discount or deal than by brand loyalty—a statistic that neatly sums up the challenge for marketers today.

As a seasoned marketer, I’ve moved from the broad, glittering glamorous world of PR and social media to the precision-driven discipline of shopper marketing. It’s a shift from speaking to a vast, anonymous audience to influencing an individual with a verified purchase history to the moment they’re about to buy in real time. This is the art and science of shopper marketing.

What is Shopper Marketing?

Shopper marketing is a discipline that focuses on influencing a consumer’s purchasing decision in the retail environment, whether online or in a physical store. It’s a strategic approach to understanding the shopper’s journey, from awareness to the final purchase, and creating touchpoints that motivate them to choose your brand over a competitor’s. It’s about optimizing the entire path to purchase, ensuring the product is not only seen but desired.

To truly grasp this concept, you must understand the critical difference between a shopper and a consumer. They are not the same person, though they can be.

  • Shopper: The person buying the product, influenced by price, promotions, convenience, and availability
  • Consumer: The end user, motivated by the product’s benefits, quality, and lifestyle fit

Consider this example: a parent buying cereal for their child. The parent is the shopper, and they’re focused on the price, the “buy one, get one free” offer, or the fact that it’s on a low shelf they can grab quickly. The child is the consumer, and they only care that their favorite cartoon character is on the box and that the cereal tastes good. Shopper marketing targets the parent’s motivations to get the cereal into the cart, while traditional advertising might be focused on making the child want the cereal in the first place.

Hyper-Targeting in a Digital World 

This is where the magic of modern shopper marketing truly shines. The shift from broad awareness campaigns to hyper-targeted ads is transformative. I’ve seen it firsthand, moving from social media campaigns designed to reach millions to digital ads that target specific shoppers based on their verified receipts.

Thanks to the power of platforms like Meta and programmatic ad networks can now run campaigns that target individuals who have already purchased a specific product. This is a game-changer. Instead of just “wishing” the right person sees your ad, you’re placing it directly in front of someone who has a proven history of buying your type of product.

This hyper-targeting is made even more precise with the integration of third-party purchase data from market research firms like Environics and AC Nielsen. These companies aggregate vast amounts of consumer data, including sales figures and purchase habits across different retailers. By integrating this data, we can create more sophisticated audience profiles. For example, a campaign for Lactalis Black Diamond Cheese can target households that have a high indexing score for buying cheese, but also buy specific complementary products, suggesting they are a highly valuable and relevant audience.

Understanding Indexing

Indexing is a core concept in shopper marketing for defining and enhancing target audiences. An index is a ratio that compares the rate of a specific behavior within a target group to the rate of that same behavior in the general population. The baseline is 100.

  • An index over 100 means the target audience is more likely to exhibit that behavior than the general population. For example, an index of 150 for buying Burnbrae Egg Bites means that this audience is 50% more likely to purchase that product than the average Canadian shopper. These are your ideal targets.
  • An index of 100 means the target audience’s behavior is exactly in line with the general population.
  • An index below 100 indicates the audience is less likely to exhibit that behavior. You would typically avoid spending your budget on these groups.

Another innovation making waves is the use of AI avatars in advertising. These aren’t just fancy animations; they’re lifelike virtual models powered by AI that can create ads faster and at a fraction of the cost of human models. They can be customized to speak multiple languages, instantly localizing a campaign for different regions of Canada without needing to hire a new actor or re-shoot. This not only drives down costs but also allows for unprecedented speed and flexibility in campaign execution.

The Power of Canadian Retail Media Networks (RMNs)

Canada’s retail landscape is dominated by a few key players and their massive subsidiaries. Loblaws, Sobeys, Metro, Costco, and Walmart are not just stores; they are powerful RMNs. These companies, with their extensive network of banners and subsidiaries, represent a significant portion of the Canadian market, and people trust them. For instance, Loblaws’ empire includes household names like Real Canadian Superstore, No Frills, and Shoppers Drug Mart, giving them a massive footprint and a high degree of shopper loyalty.

These RMNs offer a variety of in-store and online shopper touchpoints that are crucial for CPG brands to leverage. In-store, these include:

  • Shelf blades and talkers: Small signs on the shelf that call attention to a product
  • Point-of-purchase (POP) displays: End caps and displays near the checkout that encourage impulse buys
  • Digital screens and in-aisle signage: Engaging digital content that grabs a shopper’s attention as they walk by
  • Canada’s “clean store policy” prohibits floor decals, however, in U.S. and other markets floor decals are often opted for seasonal offers

While digital ads can be more cost-effective for targeted reach, in-store retail media is essential for big-box brands because it influences the final purchasing decision right at the shelf. In-store displays, for example, can create an immersive, multi-sensory experience that digital ads can’t replicate, directly influencing impulse purchases.

Loyalty Programs as Data Engines

The shopper experience is further enhanced by these retailers’ loyalty programs and apps. Apps like PC Optimum (PCO) and Metro&Moi are masterclasses in shopper incentivization. They collect vast amounts of data on an individual’s purchase history and use this to send hyper-personalized offers and coupons. This system not only rewards loyal shoppers but also provides invaluable data for brands to understand their customers’ behaviors and preferences.

Similarly, Walmart Connect serves as Walmart’s dedicated advertising platform, providing brands with an omnichannel solution. It allows for the creation of campaigns that not only run on Walmart’s website and app but also target individuals with off-site media—displaying ads to Walmart shoppers as they browse other websites. This closed-loop system provides a holistic view, with detailed measurement on how a digital ad influences both online and in-store sales.

Loyalty programs like the new Scene+ rewards program are changing the game. This program, a joint venture between Cineplex, Scotiabank, and now Empire Co. (parent company of Sobeys, Safeway, and FreshCo), has created a powerful ecosystem. By linking entertainment, banking, and grocery shopping, Scene+ provides a rich, multi-faceted data profile of its members. For a brand, this means you can target a shopper who recently bought a movie ticket and a specific snack at a Cineplex theatre with a coupon for that same snack, redeemable at a Sobeys store. This cross-platform data linkage allows for unprecedented insights and targeting capabilities.

E-Commerce & On-Demand Touchpoints

The rise of on-demand grocery delivery services like Instacart has created a new, rapidly growing shopper touchpoint. Instacart’s business model is a dream for shopper marketers—it acts as both a marketplace and a data provider. Brands can run “Featured Product ads” on the platform to appear in search results or on category pages, ensuring their product is seen by an individual who is actively shopping for groceries. Instacart’s deep data on what a person has bought and their delivery frequency allows for incredibly precise targeting, helping brands reach the right shopper at the right moment.

The Shopper’s Digital Toolkit

Another key piece of the shopper journey is the use of digital shopping list apps like Flipp and Buy Me a Pie! These apps, which are becoming increasingly popular, provide a direct window into a shopper’s intent. Consumers use them to organize their grocery lists, but for brands, they offer a powerful opportunity to intercept that list. Flipp acts as a price aggregator, helping consumers save money by showing them the best deals from weekly flyers. Brands can use this to their advantage, placing ads for their products directly on a user’s shopping list, or providing digital coupons for an item a shopper has already added.

Coupons & Cashbacks

Canada’s fragmented coupon landscape and restrictions on digital coupons add to the complexity for brands. Consequently, brands often rely on platforms like Websaver for physical coupons, such as “Mail-to-home” and “Print-at-home.” Brands can also restrict the use of these coupons to specific retailers, based on product availability and distribution. Cashback apps like Checkout 51 and survey platforms like Caddle turn receipts into valuable first-party data—revealing exactly what a shopper bought and when. This verified purchase data feeds back into future targeting strategies.

Navigating CPG Shopper Marketing in Canada

During my tenure as Channel Shopper & Media Planning Manager at DACS Marketing, I worked with brands like McCain Fries and Burnbrae Egg Bites, gaining deep insights into how digital & in-store tactics intersect in Canadian shopper marketing.

Beyond Groceries

Shopper marketing isn’t just for CPG companies; it’s a powerful tool for a variety of industries. Beyond groceries, it works exceptionally well for home appliances, beauty products, electronics, and even pharmaceuticals, where influencing the buyer at the point of sale is paramount.

Final Word

Shopper marketing in Canada is evolving at speed—powered by RMNs, loyalty ecosystems, and data-rich targeting. It’s a field where creative storytelling meets data precision, and where a single moment at the shelf can decide a brand’s success.

My journey from PR to shopper marketing has taught me this: when you understand the shopper, meet them with relevance, and remove friction at the point of purchase, you don’t just drive sales—you build loyalty. And that’s where long-term brand growth happens.