Kroger retail media arm teams up with Disney to sharpen brand advertising on streaming media

Kroger Precision Marketing (KPM), The Kroger Co.’s retail media arm, has partnered with Disney Advertising to help brands target audiences via streaming media.

Under the limited beta test, KPM’s data science and Kroger’s troves of customer data—through the supermarket giant’s 84.51° analytics subsidiary—will connect with Disney’s premium content inventory to extend the reach of advertisers to high-value audiences of streaming programming, the companies said Wednesday. With the resulting retail media insights, brands also will be able to gauge the sales impact of their ads on the back end across Kroger stores.

“We have a relentless focus on inspiring shoppers and growing brands,” Cara Pratt, senior vice president of Kroger Precision Marketing, said in a statement. “Together with Disney, we’re building more meaningful moments with measurable brand impact.”

Plans call for the beta test, starting with Hulu streaming content, to include selected consumer packaged goods (CPG) brands. PepsiCo was the first advertiser to work with KPM and Disney during alpha testing, the companies said, and the program is slated to roll out to the general market in the second half of 2023.

Kroger serves some 60 million households through its vast digital and physical properties, with 11 million people shopping with the retailer daily. / Image courtesy of Kroger

KPM and Disney said their solution will drive value for viewers and brands through audience-based advertising, melding Disney’s huge audience with Kroger’s massive customer base; a scaled streaming library with premium news, sports and entertainment; and a measurable in-store and online sales impact. With the latter, KPM closes the loop between media exposure and sales, enabling brands to assess the efficacy of their ad campaigns. Advertisers also will receive retail sales, household penetration and segment-level insights.

“While the industry is focused on identifying alternative currencies, Disney is doubling down on driving real-world results for brand clients each and every day,” according to Lisa Valentino, executive vice president of client solutions and addressable enablement at New York-based Disney Advertising. “The unrivaled reach of Disney, amplified through retail media insights from one of America’s leading grocers, results in a better experience for both viewers and advertisers, and actionable results for our clients.”

The ability to advertise through Kroger’s vast digital and physical properties gives CPG brands tremendous reach. Approximately 11 million people shop at Kroger daily, and KPM captures around 97% of those transactions. The nation’s largest supermarket retailer, Cincinnati-based Kroger generates some 2.8 billion annual visits and serves 60 million U.S. households. The company operates over 2,700 grocery and multi-department stores in 35 states under more than 20 banners, including Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fred Meyer, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick ‘n Save, Metro Market, Mariano’s, Food 4 Less and Foods Co.

“The collaboration with Kroger Precision Marketing and Disney provides an exciting opportunity for brands to meet consumers where they are by leveraging KPM’s first-party consumer data to reach the right shopper at the right time,” stated Carol Simpson, senior director of shopper marketing at PepsiCo. “As consumers spend more time with streaming TV, it is increasingly important for industry providers and advertisers to work together to bring innovative solutions like this to the marketplace.”

KPM applies data science to connect CPG brands with targeted households. The retail media network sells self-service advertising on Kroger digital properties, managed-service advertising through publisher collaborations, and programmatic advertising through its private marketplace. KPM was formed by 84.51° in October 2017 as a way to develop more relevant customer campaigns across Kroger’s digital ecosystem.