Roku taps Kroger to sharpen targeted advertising

Streaming media provider Roku has enlisted The Kroger Co.’s Kroger Precision Marketing (KPM) solution for a new shopper data program aimed at consumer packaged goods (CPG) marketers.

San Jose, Calif.-based Roku said Monday that KPM will join the program as the launch partner to build first-to-market targeting and attribution tools for streaming TV.

Specifically, Roku’s shopper data program will provide Kroger sales information to help marketers make more precise and measurable media-buying decisions. Roku said marketers will be able to activate advertising across hundreds of ad-supported channels and link ad exposure directly to in-store and online sales.

As of the 2020 first quarter, Roku totaled 39.8 million active streaming TV accounts, and the company streamed 13.2 billion hours during the quarter. Roku described itself as the No.1 U.S. streaming TV platform, by hours streamed according to Kantar, and the largest licensed TV operating system in North America.

Part of Kroger’s 84.51° data analytics arm, KPM brings to Roku data from 60 million households across nearly 2,800 Kroger Co. supermarkets. Cincinnati-based Kroger unveiled the KPM cross-channel media solution in October 2017 as a way to develop more relevant customer campaigns across its digital ecosystem. Powered by Kroger’s loyalty program, KPM offers CPG companies advertising tools to reach potential customers as well as track conversion to gauge success.

Related:Former Amazon sales exec Nancy Winé joins Kroger’s 84.51°

With the rising growth of streaming TV, Kroger said its KPM unit sought a leader in over-the-top (OTT) media service — where content is transmitted via the Internet rather than a cable TV provider — to bring accurate identity and viewing data based on a direct consumer relationship. Kroger, too, has positioned digital media as a pillar of its strategy to expand alternative revenue streams.

“Kroger Precision Marketing is eager to help advertisers understand exactly how their TV investment impacts sales. TV streaming brings digital-like precision to the big screen,” according to Cara Pratt, vice president of commercial and product strategy for KPM. “We are excited for the opportunity to work with Roku because of its scale and direct consumer relationship.”

Roku noted that CPG marketers seek advanced data solutions to make TV advertising more relevant and performance-driven. For example, the company said, KPM can help marketers segment messages to high-volume category buyers, shoppers who occasionally make purchases in a category or those who buy in a complementary category. Through integration with Roku’s shopper data program, marketers will get access to Kroger data science for targeting and closed-loop attribution to measure campaign performance across the Roku platform, as well as tools from Roku to measure the efficacy of linear TV.

Related:Kroger gives CPG advertisers more sales visibility

“We believe that all TV ads will be targeted and measurable,” Alison Levin, vice president of ad sales and strategy at Roku, said in a statement. “Our new shopper data program will make it easier and more effective for CPG advertisers to shift spend to streaming and focus on value for every ad dollar spent.”

Last week, Kroger announced that its 84.51° analytics subsidiary has hired former Amazon executive Nancy Winé as vice president of advertising sales for KPM. At Amazon, Winé led sales for the e-tail giant’s CPG vertical. And in February, KPM launched a new sales attribution capability that enables CPG brands to view in-store and online sales results from their ad campaigns with Kroger.