Kroger has announced the development of its own in-house advertising platform. The platform aims to leverage retail data to improve shopping experiences while providing advertisers with simplified tools to activate, measure and optimise campaigns.

This move comes as Kroger seeks to offer a more unified marketing strategy between on-site and offsite media channels.

Consolidating retail media services

Kroger’s new self-service platform will integrate the retail media service portfolio of its existing retail media arm, Kroger Precision Marketing. Initially, the platform will include Kroger’s product listing ads and on-site display advertising.

Eventually, it will encompass the entire retail media service portfolio offered by Kroger Precision Marketing.

Potential merger and industry standardisation

While awaiting regulatory approval for a potential merger with Albertsons, Kroger’s in-house advertising platform has the potential to create a major retail media player.

Albertsons recently announced efforts towards industry standardisation. If the merger proceeds, the combined entity could have a significant impact on the retail media landscape.

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Optimising retail media investments

Albertsons senior vice-president of Retail Media Kristi Argyilan explained that the strategic intent behind the move is to optimise retail media investments overall. Four priority areas have been identified within the proposed framework: product specifications, performance measurement, third-party verification and capabilities.

The goal is to reset the current guidelines and create a more efficient and prosperous retail media industry.

Enhanced shopping experience and frictionless advertising

Kroger Precision Marketing senior vice president Cara Pratt emphasised the importance of removing friction from the retail media buying process.

By building an integrated technology foundation, Kroger aims to empower brands and agencies to maximise the potential of retail media. The company envisions delivering consumers a more convenient, personalised and inspirational shopping experience.

New capabilities and transition plan

The self-service advertising platform will provide initial capabilities to clients, including the ability to reach relevant audiences using search-based insights, design and activate creative messages, customise creative templates, optimise campaigns and build reports using deterministic retail data.

Kroger plans to enable all advertisers to transition to the new platform by the end of the year. Advertisers currently using third-party management tools will still be able to manage inventory through those platforms, with additional integrations to be announced in the future.

Investing in talent

Kroger has been expanding its talent pool to support the development of the new advertising platform.

The company has hired professionals in product, engineering, data science, compliance, media operations and client success teams. These additions will ensure the successful implementation and operation of the in-house advertising platform.

Proven effectiveness in product discovery

Kroger highlighted the success of its on-site advertising in facilitating product discovery for consumer-packaged goods brands. In an extensive study of thousands of campaigns, it was found that 75% of targeted on-site display impressions and clicks came from new-to-brand households.

Furthermore, one out of every four new shoppers introduced through these campaigns became repeat purchasers.

Kroger’s new in-house advertising platform marks a significant step towards a more streamlined and effective retail media ecosystem.

By combining retail data and advanced advertising capabilities, the company aims to enhance the shopping experience for consumers while providing valuable tools for advertisers to optimise their campaigns.