Insider Intelligence: Inside Kroger Precision Marketing’s plans for Retail Media dominance
The interview: Kroger Precision Marketing is achieving the same sales impact for advertisers while delivering 51% fewer impressions, senior vice president Cara Pratt told us in a recent interview where she also discussed the company’s approach to retail media transformation.
KPM offers media advertising both on-site (product listing ads, display ads, and more) and off-site (social, display, streaming TV, and programmatic), with a goal to make advertising more effective and accountable. To date, KPM has worked with roughly 2,000 brands, including: Nestle, Procter & Gamble, and General Mills.
On self-service: Pratt expressed enthusiasm for KPM's recent announcement moving its self-service retail media ad platform in-house. “We're excited for the impact of our initial release, while also ensuring interoperability with various brands' media activation and management platforms,” she said.
The self-service platform allows for greater automation, curation, and optimization, which can feed intelligence and assist media buyers in making smarter investment choices.
The platform integrates with owned and operated search and display as well as coordinating and connecting audience search intelligence.
On performance: “Our experience over several years reveals that our first-party ad buys for brands require about 51% fewer impressions than third-party ones for the same sales impact," Pratt told us, suggesting that KPM's strategy leads to less wastage and higher quality sales.
Pratt cited a need to customize strategies to meet each brand's unique goals and criteria for success, emphasizing the importance of understanding what good performance looks like for each brand.
It remains critical to inform advertisers and other stakeholders on the costs and intricacies of running retail media: Education is crucial for brands to understand the power and performance of the assets involved in retail media, Pratt notes.
Compared with third-party programmatic audiences, KPM's off-site audiences matched their revenues using only 51% of impressions, proving more efficient. KPM achieved an average sales 5.1 times higher per 1,000 households. Also, KPM’s first-party households had a 40% higher lifetime value than those from third-party campaigns.
Extensive studies of KPM’s on-site product listing ads showed 91% of 4,800 campaigns improved sales through its basket-builder units. Three-quarters experienced a shortened purchase cycle, and 42% of ad product listing interactions were from new households.
Beyond the tech: Pratt emphasized the pivotal role of skilled professionals in shaping retail media's future. She stressed the irreplaceable human element in technology and the necessity of top-tier talent for driving substantial industry change.
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