News Icon



Performance Marketing Goes Primetime

By: Lindsay Pullins, Director, Media Product Strategy & Innovation

There is a special relationship happening in the advanced TV space that has big implications for CPG brands. 84.51°, and its retail media business, Kroger Precision Marketing (KPM), have teamed up with the leading streaming platform to close the loop from ad exposure to sales.

Traditional TV advertising is burdened by fragmentation

We used to live in a world where it was easy for marketers to know which media types to use. TV was known as the medium CPGs could rely on to generate awareness. Retail media, like ecommerce and purchase-based targeting, was used to activate sales.

This approach worked in the days of traditional TV, when advertisers could be assured a large audience was watching television on only a few networks. Today, with video viewership fragmented across hundreds of personalized viewing options, the return on advertising spend for traditional TV has changed drastically. Every traditional TV spot aired has less of a chance of being seen by likely buyers. Advertisers find themselves buying more spots to reach their intended audience, resulting in wasted impressions, increased expenses, and a decreased association between media investment and actual sales.

An unlikely partnership builds a solution

To tackle this problem, KPM announced a joint effort with the leading streaming platform, Roku, to bring the precision of retail media to TV advertising. The secret ingredient is the Kroger Loyalty Program, which captures 96% of all sales happening at Kroger. This first-party data provides insight into purchase behavior over time. And 84.51°’s data science can look at thousands of variables to predict which households are likely to convert. When combined with Roku’s popular streaming platform, the result is precision TV targeting, at scale.

Why Roku?

We identified advanced TV as an important expansion area for KPM to keep up with consumer’s changing television habits. With so many consumer’s streaming TV programming, we knew there was an opportunity to help brands make their traditional TV advertising budgets work harder.

Roku has seen significant growth during 2020, which it credits to its pillars of ease, control and value. As of Q3 2020, active Roku users are up this year 43% to 46 million. The platform has a direct relationship with its customers, understanding what makes them tick from a content and interface perspective. It was a natural choice for Kroger, America’s number-one grocer, to work with the number-one streaming platform, Roku.

Closing the loop

Brands who advertise on Roku using Kroger’s data will not just increase their campaign’s reach to likely buyers. They will also receive detailed proof-of-performance. KPM, powered by 84.51° data science, can accurately connect CPG sales from Roku ad exposure to in-store purchases and deliver true closed-loop measurement. Reporting includes not only traditional TV metrics like impressions and CPMs, but also retail media metrics that show household penetration, conversion against new or existing households, category share increase, total and incremental sales, and true return on ad spend.

Early results of this media partnership have been outstanding. In a recent campaign for a snack brand, the exposed audience targeted spent five times more on the advertised brand than the average shopper. And it wasn’t just brand-loyal households buying: 68% of buyers were new or lapsed.

The KPM and Roku relationship is truly bringing the efficiency of performance marketing to primetime TV advertising.

Lindsay Pullins, Director, Media Product Strategy & Innovation

We’re leading a data revolution in the retail business, and we’re looking for partners who are ready for a deeper, more personal approach to customer engagement.

Let’s connect