Kroger’s advertising division is discovering the joy of retail media plus addressability means fewer ad impressions can generate the same sales impact.
“For two years now, we’ve seen that we have the ability to use that level of precision at scale,” according to Cara Pratt, SVP of Kroger Precision Marketing at 84.51°. “We can deploy 51% fewer ad impressions and deliver the same sales impact for brands. That’s a level of performance that has a layer of effectiveness tethered right into it.”
E-commerce households are seeing double-digit growth, higher basket values, and more instances of discovery in the online ecosystem, said Pratt in this video interview with Beet.TV.
Growth From Performance
$55 billion was forecast to be spent on US retail media in 2024, though that figure is expected to grow north of $100 billion in the next three years, representing a 20% annual growth rate.
For Pratt, the key to this growth is performance. “As we think through the efficacy of how these data signals are influencing behavior, it becomes a real opportunity for brands to bring forward new connections for customers,” she added.
Pratt pointed to the new level of addressability in emerging channels and the role of retailers as commerce publishers.
“Most of the growth that’s happening … is happening through e-comm modalities,” Pratt said. “That ability to connect with a customer, inspire a customer, drive discovery in an otherwise digitally constrained shelf is powerful.”
Kroger’s Progress on Precision
Kroger Precision Marketing launched in 2017, early in the evolution of retail media networks.
Powered by 84.51°, a company specialized in helping retailers, agencies and publishers unlock retail assets for advertising, it boasts data from 60 million households.
Its ads can be delivered through Kroger.com, partner websites and Kroger’s MyMagazine platform.
Solving Real Opportunities with the Customer in Mind
The enhanced efficacy from fewer adds is important, because Pratt wants to avoid ad clutter.
“We know that this industry doesn’t need more advertisements for advertisement’s sake,” she said. “We need to make sure the efficacy of that ad is really influencing behavior.”
While QR codes and shoppable videos are gaining traction, Pratt cautioned that not every industry is ready for that level of shoppability.
“We have to be really intentional on the experiences that we want …,” she said. “It’s really an opportunity for really thinking less about the actual placement … but think about the end user that we’re looking to inspire and engage differently.”
You’re watching “The Retail Media Revolution: Powering Performance and Driving Trust,” a Beet.TV Leadership Series, presented by DoubleVerify. For more videos from this series, please visit this page.
