Forging the Next Generation of Media
Advertising is the force which opens people’s minds to new possibilities. In that sense, advertising changes the world we live in.
And retail media is changing advertising.
Brands using retail media are powering better consumer experiences, reducing wasted ad impressions, and driving more accountable ad budgets.
But there’s still work to be done. To meet the full potential of retail media, we need to remove friction from the buying and activation process.
The old ad tech landscape was built for different times. Retail media emerged with fragmented advertising systems for different media channels – from search to social to streaming TV.
It’s time to build greater interoperability across these platforms and experiences.
To truly forge the next generation of media, we need a new foundation of technology.
At the Path to Purchase Retail Media Summit, we announced that Kroger Precision Marketing is building our next generation of advertising technology in-house. Our new 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.
This new self-service platform will initially serve product listing ads and onsite display advertising. But it will soon power our entire retail media portfolio. It has been a major investment in talent and capabilities to bring this platform to life.
Why are we taking-on such a major technology investment?
We’re building this platform because we’re obsessed with optimizing the customer experience and protecting consumer information.
The consumer’s trust is our most valuable asset. But the digital media landscape was built for the old world of transacting on third-party data. Now, retailers and brands must build the consumer-first future of first-party advertising.
Building a new foundation of integrated technology also empowers brands and agencies to maximize retail media’s potential. Together, we will deliver a more convenient, personalized, and inspirational shopping experience. 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.
By building an in-house advertising platform, KPM will offer a more unified marketing strategy between our on-site and offsite media channels. The new platform will also pave the way for greater interoperability with other media activation and management software. Advertisers using third-party management tools like Pacvue and Skai will still manage inventory through those platforms. We’re excited to bring our brand partners with us on this journey.
Any platform transition—no matter the benefits—brings challenges. Here’s what advertisers can expect from Kroger Precision Marketing to ensure a smooth transition:
We are committed to building a world-class advertising platform with user input at each stage.
We are creating detailed training resources, webinars, and expert guidance for each stage.
We are in-housing a team of knowledgeable experts to help brands navigate the transition successfully.
We will frequently communicate updates over the course of the following months.
The transformation at Kroger Precision Marketing is just the beginning of what we believe is a revolutionary and industry-wide change in media.
As always, consumers are showing us the way forward. Consumers are looking at brands and retailers to help make their lives easier. The brands and retailers that can add value, utility and convenience will be the ones to shape new patterns and preferences.
One thing is clear: The future of media can’t look like the past.
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.
Retail media is here to stay. And we’re on a course to change advertising forever.
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