Is Kroger’s first-party data ideal for driving programmatic connected TV ads?
Kroger Precision Marketing (KPM), the grocer’s retail media arm, is expanding its private programmatic marketplace to include video and CTV (connected TV) inventory, fueling a convergence of three dominant media trends — CTV, programmatic buying and retail media.
Advertisers will now tap data from Kroger’s 60 million households to target relevant households with inventory suppliers like Magnite, OpenX, PubMatic and Xandr. The expansion into video and CTV builds on the 2021 launch of Kroger Private Marketplace, a self-service platform for advertising agencies and brands initially for display-only campaigns.
With the new programmatic capabilities, advertisers will have self-service access to:
- Audience intelligence through retail sales data to reach relevant CTV and video households
- Customizable premium CTV and video inventory in a centralized private marketplace
- Campaign measurement against attributable retail sales and household penetration
The offering comes as viewers continue to migrate from linear TV to CTV and CPG advertisers have increasingly faced audience fragmentation in traditional TV.
“Streaming is the number-one way people consume TV today,” said Cara Pratt, SVP, KPM, in a statement. “That means the majority of TV viewing hours can now be optimized in the programmatic environment. Our retail data precisely reaches households – such as lapsed or infrequent brand buyers – and then matches advertising exposure to store sales to measure brand impact.”
“The scale and quality of Kroger’s first-party data has enabled us to optimize CTV delivery for our advertisers against actual stores sales,” said Kelly Metz, managing director, Advanced TV at Omnicom Media Group, in the statement.
Ad Age’s Jack Neff writes, “The move comes as advertiser interest—particularly CPG advertiser interest—in CTV is growing quickly, along with a recent explosion in retail media offerings and the availability of retail purchase data to target and measure the effectiveness of ads.”
Adexchanger’s James Hercher believes the higher cost of first-party over third-party data might present challenges. He wrote, “National TV advertisers, especially big CPG brands with upfront rates, are used to software and data costs eating up some single-digit percent of the media plan. That’s the difficult transition for KPM as it adds CTV – not just proving the ROI of a campaign, but the value of the data itself.”
- Kroger Precision Marketing expands private marketplace to include video and CTV advertising – Kroger Precision Marketing
- Kroger Precision Marketing (KPM) Activates Omnichannel Inventory Through Magnite – Magnite
- Kroger Opens Data Marketplace For Connected Tv And Streaming Ads – Advertising Age
- Kroger Adds CTV Inventory To Its Retail Media Offering – Adexchanger
DISCUSSION QUESTIONS: What do you think of the advertising opportunity in purchasing CTV and video inventory tied to Kroger first-party data? What’s your overall advice for brands exploring a programmatic CTV advertising strategy?