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Philadelphia Cream Cheese Exits Traditional Search Ads, Shifting Spend to Retail Media
Philadelphia Cream Cheese has significantly reduced its investment in traditional Google search advertising, reallocating these funds towards retail media and broader marketing channels. This strategic pivot reflects a recognition that consumers are not actively searching for staple CPG products like cream cheese via search engines.
What Happened
- •Philadelphia Cream Cheese, owned by Kraft Heinz, has ceased paying for conventional search ads targeting prospective shoppers on Google.
- •This shift occurred over the past year, moving away from a previous reliance on search engine marketing.
- •Funds previously allocated to search advertising are now being directed into retail media platforms and wider marketing initiatives.
- •The brand's marketing VP noted that consumers typically do not use Google to search for basic CPG items like cream cheese.
- •Source: Digiday, 25 March 2026.
Why It Matters for NZ Marketers
- •NZ CPG brands should critically evaluate the effectiveness of their current search ad spend for low-consideration, everyday products.
- •This highlights the growing importance of retail media networks, which are also expanding in the New Zealand market through major retailers.
- •NZ marketers must understand consumer purchase journeys for their specific product categories, as not all products benefit equally from direct search queries.
- •It prompts a re-evaluation of media mix models, considering where consumer attention truly lies for impulse or habitual purchases.
- •The move signals a potential global trend that could influence budget allocations for NZ brands with similar product profiles.
Strategic Implications
- •Audit existing search campaigns for CPG staples to identify inefficient spend on generic keywords where purchase intent is low.
- •Explore and invest in retail media partnerships to influence purchasing decisions closer to the point of sale, both online and in-store.
- •Diversify media strategies beyond direct response search, focusing on brand building and awareness in broader channels for CPG goods.
- •Develop a deeper understanding of consumer behaviour for specific product categories to align marketing spend with actual discovery and purchase paths.
- •Consider the role of content marketing and recipe inspiration over direct product search for categories like food ingredients.
Future Trend Signals
- •Increased investment and sophistication in retail media networks will become a primary channel for CPG brands globally, including NZ.
- •A continued decline in the perceived value of generic keyword bidding for established, low-consideration CPG products.
- •Greater emphasis on full-funnel marketing strategies that balance awareness, consideration, and conversion across diverse touchpoints.
- •Data-driven budget reallocation will become standard, moving away from legacy channel allocations based on assumed consumer behaviour.
Sources
Editorial note: This analysis is original, AI-assisted editorial content. All source material is attributed with links. No full articles are reproduced. Short excerpts are used under fair dealing principles.
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