BRAVE COMMERCE: Meta, Nestlé, and Circana Insights on Driving Innovation While Evolving with Commerce
In the February 4, 2025, episode of Brave Commerce hosted by Rachel Tippograph of MikMak and Sarah Hofstetter of Profitero, industry leaders Veral Shah (Nestlé North America), Katie Hamill (Meta), and Sam Baglidari (Circana) delve into the evolving landscape of eCommerce. The discussion centers on leveraging artificial intelligence (AI), understanding shifting consumer behaviors, and navigating the blurring lines between traditional and digital commerce channels.
1. Setting the Stage: The Changing Face of America and Its Impact on Commerce
Rachel Tippograph opens the episode by highlighting significant demographic and societal shifts:
“We just had Tia here, which...my generation is the least religious generation that's ever existed in the US...We replaced religion with brands...Gen Z, they're the most sexually fluid...Gen Alpha, they're the most racially diverse.”
[03:11] Rachel Tippograph
These changes, Rachel posits, are intrinsically linked to the future of commerce, emphasizing the necessity for brands to engage with consumers in increasingly personalized and meaningful ways.
2. Meta's Perspective: Leveraging Video and AI to Engage Gen Z
Katie Hamill from Meta discusses the explosive growth of short-form video content and its impact on consumer behavior:
“Almost 80% of Gen Z people report that they have actually bought a product because of a reel that they saw on Meta.”
[05:12] Katie Hamill
She elaborates on Meta's investment in generative AI to aid marketers in creating scalable, personalized content:
“We are investing a lot in gen AI tools that will be designed specifically to help marketers ideate on creative produce more creative at scale creative that is personalized and can actually drive ROI of their advertising.”
[07:12] Katie Hamill
This focus aims to reduce the traditional barriers of cost and resource intensity associated with high-quality video production, making it more accessible for brands to engage effectively with their audience.
3. Nestlé's Innovative Use of AI in R&D and Supply Chain Management
Veral Shah from Nestlé outlines the company's three-phase approach to integrating AI into its operations:
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Research & Development: Utilizing generative AI to accelerate product innovation and consumer insight generation.
“We now have a process where we actually use a chatbot... allowing us to iterate fast... what are working from an R and D standpoint.”
[08:52] Veral Shah -
Supply Chain Reengineering: Adapting traditional logistics to meet modern consumer shopping behaviors, including a significant shift towards online sales.
“20% of every case that we sell at Nestlé is sold online... we're on our way to 25 to 30%.”
[08:52] Veral Shah -
Personalization and Digital Transformation: Creating tailored consumer experiences through AI-driven personalization strategies.
“Don't think of generative AI as a solution. It's an enabler... everything stems from that capability that we've got to get.”
[27:43] Veral Shah
Veral emphasizes the integration of a "digital twin" of ChatGPT, customized with Nestlé-specific data to enhance decision-making and operational efficiency.
4. Circana's Focus on Execution and Real-Time Data Integration
Sam Baglidari from Circana underscores the importance of robust data infrastructure to support AI and machine learning initiatives:
“Execution needs to be greater than information. You have to have the plumbing built before machine learning... that's exactly what we're doing right now.”
[01:26] Sam Baglidari
Circana is expanding its data assets to include digital shelf information, logistical data, and retail media insights, aiming to provide real-time data that empowers brands to make informed, agile decisions.
“Real-time data is essential... to exploit the machine learning, the AI and everything else.”
[28:44] Sam Baglidari
This approach ensures that AI tools can effectively utilize data to reflect genuine consumer behaviors and market dynamics.
5. Navigating Media Investments and Attribution in a Cookie-less Future
The panel discusses the challenges posed by diminishing deterministic attribution models due to changes like Apple’s privacy updates and the phasing out of cookies:
Rachel prompts:
“How are you organizing yourselves around the future of attribution when there are all these industry headwinds right now?”
[22:18] Rachel Tippograph
Veral responds by acknowledging the industry's struggle with data reliability and the need for improved marketing mix models:
“We're still working through some of that. A lot of it is trust... we have to be able to unlock that.”
[11:56] Veral Shah
Katie adds Meta's strategic focus on leveraging first-party data and enhancing AI-driven creative capabilities to maintain effective attribution and ROI measurement:
“We're thinking a lot about what are the products that advertisers need... how do we help all of our advertisers reach consumers in the way that these kind of emerging business models demand.”
[19:47] Katie Hamill
6. Embracing Omnichannel Commerce and Personalization
Veral from Nestlé emphasizes a tailored approach to omnichannel commerce, recognizing that different product categories require unique strategies:
“Every brand is going to be a different personalization... it's all about personalization.”
[17:22] Veral Shah
He illustrates this with examples of how various Nestlé products perform online based on their nature and consumer preferences, highlighting the importance of meeting consumers where they are.
7. The Role of Market Share and Consumer-Centric Metrics
The conversation shifts to the significance of market share as a key performance indicator (KPI) in the modern retail landscape:
“Share has become really important for us internally.”
[26:19] Ryan Reynolds
Sam discusses how Circana integrates market share data with consumer behavior insights to help brands understand and capitalize on their positions within specific shopping occasions and use cases.
8. Future Capabilities: AI Advancements and Real-Time Data Needs
Looking ahead, the panel identifies crucial capabilities required for continued success:
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Generative AI: Nestlé aims to harness generative AI not just as a tool but as an enabler for solving complex business problems.
“Tell me your business problem and then let me help you figure out if Gen AI is actually the solution.”
[27:43] Veral Shah -
Real-Time Data Integration: Circana focuses on obtaining real-time data to facilitate dynamic decision-making and enhance AI effectiveness.
“Real-time data is essential for us to make better decisions.”
[28:44] Sam Baglidari -
Business Messaging and Creative AI: Meta plans to expand its AI applications to include business messaging, aiming to improve customer communication and support.
“Business messaging remains pretty untapped... we're leveraging AI to better communicate with customers.”
[29:20] Katie Hamill
9. Audience Q&A Highlights
The episode concludes with audience questions, where panelists stress the importance of integrated media strategies and the nuanced application of retail media alongside traditional channels.
Veral advises against viewing retail media as merely shopper marketing, advocating instead for its role as a national advertising platform that complements broader media investments.
“Retail media is nothing more than a national advertising platform.”
[30:27] Sam Baglidari
Ryan adds that the ROI from retail media often stems from its synergistic relationship with retail partners, enhancing overall marketing efficacy.
“It's another negotiating tool for us with the retailers, which then doubles your ROI.”
[31:51] Ryan Reynolds
10. Concluding Thoughts: Embracing Bravery in Commerce
In a lighthearted finale, panelists share personal anecdotes about bravery, symbolizing the bold innovations and strategic shifts necessary to thrive in the evolving commerce landscape.
Conclusion
This episode of Brave Commerce provides a comprehensive exploration of how leading companies like Meta, Nestlé, and Circana are navigating the complexities of modern eCommerce. By leveraging AI, embracing personalization, and rethinking media strategies, these industry pioneers illustrate the dynamic approaches required to engage today’s diverse and digitally-savvy consumers. The discussions underscore the importance of data-driven decision-making, real-time insights, and collaborative media investments in driving sustained growth and innovation in the ever-evolving world of commerce.