Watch out, Amazon and Walmart: Kroger is also building an advertising business
Amazon’s advertising business is worth at least $1 billion, and Walmart has a growing advertising platform, too. Kroger, one of the biggest grocery brands in the U.S., is also venturing into retail media. Kroger is selling its suppliers ad units and solutions, and it is developing a programmatic platform that will go live next year.
“CPG brands today are splitting their marketing spend between trade and advertising. Trade promotion is one of the industry’s largest investments — this is promotional dollars to influence brick-and-mortar sale pricing like temporary price reductions,” said Cara Pratt, vp of customer communications product strategy and innovation for 84.51°. “CPGs shift their marketing budgets across vehicles — many of which deliver against different business objectives, but all are intended to [generate] sales. Our science and Kroger’s customer insights help CPG brands drive actions.”