Kroger Launches In-House Advertising Platform

Kroger is advancing its retail media strategy by launching an in-house advertising platform designed to enhance shopping experiences and simplify the process for advertisers to manage, measure, and optimize campaigns. This new self-service platform will integrate the capabilities of Kroger Precision Marketing, the company’s existing retail media arm, and will initially offer services like product listing ads and on-site display advertising. Over time, the platform will encompass the full suite of Kroger Precision Marketing’s retail media services.

Key Features of the Platform:

• Audience Targeting and Customization: Advertisers will be able to reach relevant audiences through search-based insights and custom ad groups.
• Creative Flexibility: Users can design, iterate, and activate creative messages within the platform and save multiple creative templates by brand and product.
• Campaign Optimization: Advertisers can fine-tune various aspects of their campaigns, including budgets, messaging, and flighting schedules.
• Performance Tracking: The platform will leverage retail data, such as sales lift, household penetration, and unit lift, to build reports and enhance campaign performance.

Integration with Offsite Media Channels:

Kroger’s move to an in-house platform aims to provide a more cohesive marketing strategy across both on-site and offsite channels. This approach promises better integration, allowing for a more streamlined experience for advertisers as they manage their campaigns across different touchpoints.

Talent Expansion and Platform Capabilities:

To support the growth of its advertising platform, Kroger is significantly expanding its team, adding roles in product, engineering, data science, compliance, media operations, and client success. This expansion will help ensure the platform’s development and provide ongoing support to advertisers.

Results from Existing Advertising Services:

Kroger’s current on-site advertising offerings have already shown strong results in terms of product discovery and customer acquisition:

• 75% of targeted on-site display impressions and clicks came from new-to-brand households.
• 1 in 4 of these new shoppers returned as repeat purchasers, demonstrating the potential effectiveness of its advertising solutions.

Future Growth Potential:

The potential merger with Albertsons, which is still pending regulatory approval, could further enhance Kroger’s position in the retail media space. If the merger proceeds, it may create a dominant player in the retail media industry, possibly establishing new standards for industry practices, such as product specifications, performance measurement, third-party verification, and overall capabilities.

Conclusion:

By consolidating its advertising services into a self-service platform, Kroger aims to offer advertisers greater control and efficiency in campaign execution. With a focus on delivering measurable results using retail data, Kroger’s move underscores its commitment to improving the shopping experience while driving business growth for CPG brands.