- Kroger Precision Marketing (KPM) at 84.51°, the retail media unit of grocery giant Kroger, will allow advertisers to purchase product listing ads on its web properties using select platforms third-party management, according to news shared in an email with Marketing Dive.
- Pacvue, Skai and Flywheel are the first ad tech companies with access to Kroger’s API, while WPP’s GroupM media buying arm is one of the first agency partners testing the capability. The idea is to make it easier to execute and manage Kroger on-site campaigns using external retail media platforms that are already popular with brands and agencies.
- Kroger said the expansion of ad technology options complements the continued traction of sponsored product listings. Nearly 2,000 brands now use KPM’s product listings, and 38% of clicks generated by the format come from households new to the brand, according to internal KPM data.
Overview of the dive:
KPM has made a point of positioning its retail media business around flexibility for advertisers. Opening up the ability to buy ads through third-party campaign management platforms further reinforces this approach and could court brands already familiar with Pacvue, Skai and Flywheel, three popular players in the nascent retail media category.
CPG marketers have increased their spending on retail media as e-commerce adoption explodes and looming cookie deprecation forces a change in thinking about ad targeting. While a greater variety of digital platforms to advertise on can be seen as a positive development, some companies have expressed concern that retailers are offering their own version of walled gardens.
KPM has attempted to assuage these concerns by emphasizing transparency and media accountability. Providing more technology choice could also accelerate the growth of ad formats that are already gaining traction, such as sponsored product listings.
“Expanding access through ad management platforms will unlock even greater discovery, help brands measure the impact of their advertising, and ultimately improve how consumers engage with these brands,” Michael Schuh, vice president of media strategy at KPM told 84.51°, in a press statement.
Kroger, which is the largest grocery chain in the United States, promotes product listing ads as an effective way for brands to break in to new consumers in the crowded digital aisle. The company serves approximately 60 million households annually and offers “closed loop” measurement capabilities where it can match household exposure to actual purchases in its stores.
KPM has taken further steps to expand its advertising business in recent months. In October, it opened a private programmatic market building on its troves of first-party data, including transactions related to its loyalty program. The launch marked the first time brands have received self-service access to KPM’s targeting solutions, retail performance metrics, and quality checks such as security verification and labeling. the brand. A month later, KPM officially rolled out a collaborative cloud for marketers looking to leverage its transaction data. Reddi-wip, Slim Jim and Vlasic had been testing the product for over a year.
KPM’s continued additions to its retail media network also come as rivals up their bets to capture more brand dollars. Albertsons unveiled the Albertsons Media Collective and its intentions to take greater control over its media business in November, ending a partnership with Quotient. The platform started running campaigns last month.