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Kroger Precision Marketing Builds In-House Advertising Platform to Power the Future of Retail Media

June 28, 2023

The retail media business of Kroger is expanding talent and capabilities to improve shopping experiences and increase advertising performance.

CINCINNATI, OHIO – June 28, 2023 – Kroger Precision Marketing (KPM), the retail media business of Kroger, is building the next generation of advertising technology in-house. The new KPM advertising platform will accelerate the ability for retail data to improve shopping experiences while also making it easier for advertisers to activate, measure, and optimize campaigns.

The new self-service platform will initially encompass Kroger’s existing product listing ads and onsite display advertising. It will later power KPM’s entire retail media service portfolio.

“Retailers are creating the consumer-first future of advertising,” said Cara Pratt, Senior Vice President of Kroger Precision Marketing. “We know we need to remove friction from the retail media buying process. Building a new foundation of integrated technology empowers brands and agencies to maximize retail media’s potential. Together, we will deliver a more convenient, personalized, and inspirational shopping experience.”

Retail media emerged with fragmented advertising systems for different media channels. By building an in-house advertising platform, KPM will offer a more unified marketing strategy between various on-site and offsite media channels. The new platform will also pave the way for greater interoperability with other media activation and management software.

As a self-service advertising platform, initial capabilities will allow clients to:

  • Reach relevant audiences using search-based insights and custom ad groups.
  • Design, iterate, and activate creative messages within the platform.
  • Customize and save multiple creative templates by brand and product.
  • Optimize all campaign elements including budgets, messaging, and flighting.
  • Build reports and boost performance against deterministic retail data - including sales lift, household penetration and unit lift.

All advertisers will be able to transition to the new platform before the end of 2023. Advertisers using third party management tools from Pacvue, Skai and Commerce IQ may still manage inventory through those platforms. Additional integrations will be announced in the future.

While other digital media companies have contracted in 2023, KPM has been adding talent to build the new advertising platform. New roles have included product, engineering, data science, compliance, media operations, and client success teams. The growth spotlights Kroger’s commitment to retail media innovation.

The new platform is announced as KPM’s on-site advertising has proven to be effective at inspiring product discovery for consumer packaged goods brands. In a KPM study of thousands of campaigns, 75% of targeted onsite display impressions and clicks were from new-to-brand households. 1 in 4 of those new shoppers becoming repeat purchasers.

“The future of media can’t look like the past,” said Pratt. “Retail media is forcing modernization across marketing. Retailers are changing the advertising playbook because our success depends entirely on shopper satisfaction. We’re here to make advertising dollars work harder for both shoppers and brands.”

__About Kroger Precision Marketing __

Kroger Precision Marketing (KPM) is the retail media business of Kroger. Powered by 84.51° data science, and Kroger’s popular loyalty card program, KPM connects customers to brands through engaging moments that inspire purchasing online or in-store. KPM has been recognized as a top-rated retail media network. A survey of brand managers conducted by The Path to Purchase Institute (P2PI) ranked Kroger Precision Marketing as the #1 retail media network for audience, measurement, and traffic-driving capabilities. Survey results appeared in the P2PI 2023 annual trends report.

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