Omnicom and Kroger Precision Marketing Collaborate to Reduce Media Waste
This post is an edited version of the full Omnicom press release here.
Omnicom Media Group has announced a strategic collaboration with Kroger Precision Marketing (KPM) that will deliver early-adopter opportunities to Omnicom clients. Kroger Precision Marketing is the retail media network powered by 84.51°.
The agreement will launch with Kroger Precision Marketing feeding its SKU-level store inventory data to Omni, Omnicom's open operating system that orchestrates better outcomes for clients across the entire consumer purchasing journey. This daily data will add a critical capability to Omnicom's Supply Chain IQ Score which helps brands to quickly and effectively re-direct media spend to deliver on business KPIs in a supply-strained environment.
The agreement marks the first formal collaboration with this dataset between Kroger Precision Marketing and an agency holding company.
Launched in May, the Supply Chain IQ Score leverages data from top U.S. retailers and distributors to give media planners day-to-day visibility into SKU inventory data at the physical store and digital shelf levels. This visibility enables media investment to be quickly shifted away from low-inventory products, and toward another SKU in the brand portfolio that has high repeat purchase behavior, healthy inventory, and strong market basket correlation to the low-inventory item.
This partnership with KPM will provide product availability data across Kroger's 2700 stores in 35 states, as well as fulfillment rates from ecommerce orders and market basket insights around SKUs purchased together and substituted--not currently available through any other third-party platform.
Planners can now optimize in-market retail media, utilizing shopper behavior data to shift spend based on product availability; and still have the flexibility to optimize media, while maintaining national consumer demand.
"The combination of Kroger's reach - 50% of US households– and the greater depth of visibility that its unique inventory data enables adds scale and utility to the Supply Chain IQ Score," says Omnicom Media Group Chief Activation Officer Megan Pagliuca, enhancing account teams' ability to reduce media waste, meet brand performance goals and assure positive consumer experiences in a supply-strained environment."
"Kroger Precision Marketing is committed to bringing more transparency to the media supply chain to help brands be more effective in their advertising," says KPM Senior Vice President Cara Pratt. "Our collaboration with Omnicom aligns with our mission to make brand advertising more accountable."
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