Sweet Strategies: How Confectionery Brands are Utilizing RMN's to Capture Consumer Attention

As ad impressions soar by 10% year-over-year in Q2 2024, confectionery brands are strategically leveraging RMNs platforms to connect with consumers during peak seasons. This blog dives into the latest trends and shifts in confectionery advertising, showcasing how brands are refining their strategies and investing in RMNs to engage their audiences effectively. From Halloween campaigns to seasonal promotions, learn how these networks are reshaping the way brands reach and resonate with shoppers.

Confectionery Brands Amplify Focus on Halloween

In the confectionery industry, digital ad spend strategy typically follows distinct seasonal patterns, closely tied to key holidays such as Valentine's Day, Easter, Halloween, and the winter holiday season. These periods typically witness a significant surge in ad investments, as brands seize the opportunity to capitalize on heightened consumer demand. During Halloween in Oct '23, ad spend across the category saw a substantial MoM increase of 53%, driven primarily by chocolate brands like Lindt, M&M’s, and Reese’s, which boosted their investments by 169%, 121%, and 110% respectively. 

Similarly, confectionery ad spend remained elevated during the two weeks leading up to Thanksgiving and the week before Christmas, with Hershey, Mars, Inc., and Ferrero leading the charge, capturing 34%, 25%, and 20% of SOV among confectionery advertisers, respectively. 

However, following the holiday season, ad spend in the confectionery sector dropped sharply in Jan '24, reflecting the typical post-holiday lull and consumers adopting new year's resolutions tied to diet and fitness. Despite this downturn, the market rebounded quickly as brands shifted their focus to Valentine's Day. In the lead-up to this key holiday, confectionery brands steadily increased their ad investments, achieving an average WoW growth of 60% from 1/7/24 to 2/4/24, peaking in the week before Valentine's Day.

Sensor Tower data reveals that leading advertisers have strategically concentrated their ad efforts around certain holidays. According to Numerator's Holiday Trends Consumer Survey, Halloween is the most anticipated holiday for candy purchases, with 79% of celebrators planning to buy candy for the occasion. Easter follows with 53%, and Valentine's Day with 49%. In response to this significant consumer interest, Mondelez allocated a substantial 83% of its seasonal ad budget to Halloween-themed campaigns over the past 12 months, a significant increase of 44 ppts YoY. Notably, Sour Patch Kids, a key brand for Mondelez, accounted for 31% of its Halloween seasonal ad spend. This strategic investment allowed Mondelez to capitalize on the heightened interest during the Halloween season.

In parallel, See’s Candies, renowned for its premium chocolate offerings, shifted its focus to Halloween by dedicating half of its seasonal ad spend to the holiday, a notable increase of 26 ppts from the previous year. emphasizing Halloween party preparation and gift sets in its creative content. Key themes included "spreading the spooky spirit" and "unleashing sweet spirits," featuring a colorful assortment of Halloween treats. The ads highlighted decorative bowls and plates for party setups, aiming to attract consumers planning Halloween parties rather than just those purchasing candy for trick-or-treating.

Meanwhile, Hershey, another leading confectionery advertiser, also increased its focus on Halloween, dedicating 26% of its total seasonal ad budget to Halloween campaigns, an increase of 12 ppts from the previous year. Unlike Mondelez and See’s Candies, Hershey and Mars, Inc. adopted a more diversified strategy, distributing their ad investments across multiple key holidays, including Halloween, the winter holidays, and Easter. This balanced approach allowed them to maintain strong brand visibility throughout the year, ensuring a consistent presence across various consumer touchpoints.

Hershey kicked off its Halloween promotion earlier this year with an open-box video campaign launched in Jul '24 on Facebook and Instagram. The campaign featured a fan unboxing the highly anticipated REESE'S Pumpkins well ahead of Halloween, generating excitement among REESE'S enthusiasts. The video emphasized the freshness and ideal peanut butter-to-chocolate ratio of these limited-edition treats, appealing directly to loyal fans. By leveraging personal recommendations and the allure of early access, the campaign encouraged viewers to visit shop.hershey.com to secure their REESE'S Pumpkins before they sold out. Launching the campaign in July, two months earlier than last year's September start, allowed Hershey to extend the promotional period and capitalize on early consumer interest, securing a stronger foothold in the competitive Halloween market.

Five Below Emerges as Top RMN for Confectionery Brands

Confectionery brands have increasingly turned to RMNs to capture consumer attention, with ad impressions on these RMN platforms rising by 10% YoY in 2Q24. Among these networks, Five Below has emerged as the most popular choice for confectionery brands, with ad investments experiencing rapid growth. In 2Q24, confectionery impressions on Five Below’s RMN were nearly 10 times higher than in 2Q23, driven by major advertisers such as CandyMania and Mondelez, which collectively dominated 95% of the SOV on the platform. This strategic shift towards Five Below is notable, as the retailer primarily targets tweens and teens (ages 9 to 19), but also appeals to young adults and parents seeking affordable products. 

The store’s vibrant and fun shopping environment aligns perfectly with the impulse-buy nature of confectionery products, making it an attractive platform for brands looking to engage with this youthful demographic. Conversely, RMN ad investments in Walmart (-48% YoY) and Target (-40% YoY) declined in 2Q24. This shift could reflect a growing focus on niche markets and a need for brands to diversify their advertising strategies. Despite this, Walmart and Target remain crucial advertising channels due to their extensive reach and reliability.

Chocolate brands have solidified their presence on Target, Dollar General, and Walgreens RMNs, capturing significant shares of confectionery ad impressions with 93%, 84%, and 70%, respectively, in the first seven months of 2024. This dominance indicates a strategic focus on these platforms. Notably, half of the top 10 chocolate advertisers allocated over 50% of their co-marketing ad budgets to the Target RMN during this period. Target remains a preferred platform for chocolate brands, with Lindt Classic Recipe, Hershey Chocolate Bar, Hershey's Kisses, Ghirardelli Chocolate Squares, and Lindor collectively increasing their ad impressions on Target’s RMN by 576% YoY in 2Q24. However, some brands are adjusting their strategies to diversify their presence across different RMNs. For instance, M&M’s shifted a portion of its RMN budget from Target to Walmart, resulting in a 88% drop in ad impressions on Target and a corresponding 55% increase on Walmart’s RMN in 2Q24 compared to the same period in 2023. 

On the other hand, Soft Candy, Licorice, and Gummies brands have adopted a more diversified approach to their RMN ad investments. Their co-marketing ad impressions are relatively spread across various RMNs, including Five Below (32%), Walmart (27%), Walgreens (18%), and CVS (10%). In particular, these brands have secured a strong presence on Five Below and CVS, capturing 58% and 45% of confectionery ad impressions share, respectively. While their focus has been on these retailers, investing in Target could potentially yield a higher SOV. For instance, in the first seven months of 2024, Nerds Candy has allocated 44% of its RMN budget to Target, achieving a notable 26% SOV in the Soft Candy, Licorice, and Gummies category. Similarly, Airheads Xtremes has invested its entire RMN budget in Target, securing a 21% SOV. These examples underscore the potential benefits of strategically investing in Target’s RMN to boost brand visibility and differentiate Soft Candy, Licorice, and Gummies brands.

Confectionery Brands Enhance Visibility in Retailer's Loyalty Ads

This summer, confectionery brands strategically adjusted their RMN advertising, focusing more on visibility through retailers’ loyalty ads. Between Jun '24 and Jul '24, ad impressions from Target loyalty ads surged by 673% YoY, and the share of their RMN ad impressions from these loyalty ads increased by 15 ppts to 19%. This growth was primarily driven by Lindt Classic Recipe, which had not invested in Target’s loyalty program in 2023 but has dominated the SOV among confectionery brands in Target’s loyalty ads over these two months. Meanwhile, the share of Walmart RMN ad impressions from loyalty ads rose by 20 ppts YoY to 21%, largely due to Ferrero’s SweeTarts, which also began investing in Walmart’s loyalty advertising in 2024 after not participating in 2023, and now leads the SOV in Walmart's loyalty ads among confectionery brands.

At Target, confectionery brands capitalized on the retailer's emphasis on discounts and seasonal promotions, targeting value-conscious shoppers and families looking for affordable treats during the summer months. Co-marketing ads promoted attractive offers, such as 20% off select M&M'S, Lindt, and Kinder chocolates, positioning these products as part of a broader summer sale. By leveraging the Target Circle discount program, brands like Lindt Classic Recipe and M&M'S enhanced their appeal to budget-minded families and loyalty program members through enticing savings. This strategy encouraged immediate consumer action and increased sales by tapping into Target’s extensive base of loyal consumers.

Conversely, at Walmart, confectionery brands adopted a more experiential approach, taking advantage of the retailer’s summer road trip theme to align their products with the adventurous spirit of the season. This strategy was aimed at outdoor enthusiasts, families, and younger consumers who were planning road trips or vacations. Ads featured phrases like “Gear up & go” and “Prep to hit the open road,” integrating confectionery items into the broader context of summer travel. The thematic approach, coupled with Walmart+ loyalty benefits, helped brands like Ferrero’s SweeTarts and Jet-Puffed marshmallows associate their products with the excitement of road trips and family outings. Instead of focusing solely on discounts, this campaign created a memorable connection between these products and the summer travel experience, appealing to active, lifestyle-focused consumers looking for convenience and fun on their journeys.

Key Takeaways

• According to Numerator's Holiday Trends Consumer Survey, Halloween is the most anticipated holiday for candy purchases. In response to this significant consumer interest, Mondelez allocated a substantial 83% of its seasonal US ad budget to Halloween-themed campaigns over the past 12 months, up 44 ppts YoY

  • See’s Candies and Hershey also shifted their focus to Halloween, increasing their share of ad spend for Halloween ads by 26ppts and 12ppts, respectively, compared to the previous year

• Confectionery brands have significantly boosted their presence on RMNs, with ad impressions rising by 10% YoY in 2Q24. Among these networks, Five Below has become the leading choice, with confectionery ad impressions on its platform soaring nearly tenfold compared to the same period in 2023

• This summer, confectionery brands strategically adjusted their RMN advertising, focusing more on visibility through retailers’ loyalty ads. Between Jun'24 and Jul'24, their loyalty ad impressions on Target surged by 673% YoY, with the share of RMN ad impressions from these ads increasing by 15 ppts to 19%, driven by Lindt Classic Recipe. On Walmart, loyalty ad impressions rose by 20 ppts YoY, with SweeTarts leading the growth

Stay tuned for more seasonal sweet insights.