How to Optimize CPG Budgets for Q2 Growth
As Q1 closes, our consumer packaged goods (CPG) clients and agency partners are facing a crucial pivot: Adapting media spending and product offerings in Q2 to capitalize on the emerging market forces that are reshaping shopper preferences. Here’s the reality:
- Purchase Size Fluctuations: Inflation is driving a hard shift in CPG purchase patterns. Nearly 9 out of 10 shoppers are changing the way they shop, according to LendingTree, with 61% citing stress about paying for groceries in the past month.‡ They’re also continuing to visit more stores – 20 or more – to save money and find deals.§ Our clients tell us that per-unit price increases are causing shoppers to choose the smallest product size or make bulk buys to manage their grocery budgets.
- Tariff Uncertainty: While some brands have mitigated the immediate effects of tariffs through strategic stock planning, long-term tariff implications remain a key concern.
- Budget Bottlenecks: Most brands did not make proactive budget cuts in Q1 but will likely look in Q2 to meticulously balance cost pressures with shelf pricing and marketing dollars, according to Cleveland Research Company♦. Expect tight scrutiny on ROI from the C-suite, which is demanding clear metrics before greenlighting budgets down to the campaign level.
CPG Q2 Strategies: Agile Marketing in Uncertain Times
In this dynamic marketing environment, you need to identify and persuade your most valuable customers, fast. Partner with a data analytics expert who can execute an omnichannel approach with speed and precision.
Seize Market Opportunities with Agility. Time is money. Once a budget is approved, launch swiftly and optimize in real time. No more 45-day delays. Instead, demand near-instantaneous speed to market from your marketing partners.
Catalina’s real-time Shopper Intelligence Platform provides a data edge. We combine 1:1 deterministic data with third-party insights, revealing the what, where and why behind shopper decisions across more than 400 million Shopper IDs. We analyze purchase receipts and panel data, retailer visit behavior, media consumption, demographics and lifestyle data, and ingredient preferences.
Use Precise Targeting to ID High-Value Shoppers
Don’t chase new customers at the expense of your loyal base. Pinpoint current buyers, then strategically layer in aspirational category shoppers who have not tried your brand YET.
Skip the “black box” solutions and basic targeting that relies on short-term incentives to deliver results. Instead, seek out a strategic data analytics partner that delivers purchase-based audiences aligned with your core strategy.
Catalina’s solutions show you the entire shopping cart and models the immediate impact of budget shifts.
Seek out Retailer Agnostic Solutions
Catalina offers full transparency and in-flight optimization to amplify and augment your Retail Media Network relationships. We show you where to shift resources for peak performance and can help you implement a sequential marketing campaign that serves up brand and performance marketing along a dynamic continuum.
Our multi-touch attribution and post-campaign reports track responsiveness and sales impact across channels, focusing on the metrics that matter: Sales lift, incremental sales, total ROAS, penetration drivers, buy rate, frequency, and attribution by channel, creative, and audience.
With this approach you’ll stop bleeding profits on guaranteed buyers, reserving incentives for the final nudge to likely converters, maximizing your budget and minimizing waste.
To discover the advantages of partnering with Catalina to create nimble, cost-effective solutions for Q2, contact us at results@catalina.com.
‡ LendingTree, 2025
§ Wall St. Journal, 2024
♦ CRC Tariff Impact Report, 2025