LAS VEGAS — Artificial intelligence tools could help drive a new era of optimization that will adapt ad creative for cohorts of audiences.

That is the view according to Cara Pratt, SVP, Kroger Precision Marketing, 84.51°.

In this video interview with Beet.TV, Pratt says AI should be best use to optimize ads for audiences, not for channels.

AI and Machine Learning in Audience Planning

“We feel very strongly that AI needs to heavily influence audience and planning needs to start at an audience level, not a channel level,” Pratt shares.

She emphasizes the importance of optimizing for business outcomes using techniques like embeddings and machine learning.

Pratt explains how this approach allows businesses to connect with different cohorts of consumers based on their specific goals – be it increasing household penetration, re-engaging lapsed buyers or driving the maximum incrementality for a brand.

Creative Optimization and Retail Data

The crux of this strategy is to connect audience strategy with creative strategy. “The dynamic creative optimization tools that are out there is really where we see a powerful accelerant for how retail data and retail signals is going to influence the advertising ecosystem for years to come,” Pratt notes.

By adapting creative content based on different purchase cycles, businesses can close the loop and understand a customer’s journey from exposure to engagement and purchase. “They have to change that creative treatment to connect with them in other meaningful ways based off of their life stage and lifestyle over time,” she explains.

Brands Activating with Kroger

Kroger Precision Marketing launched in 2017, early in the evolution of retail media networks.

Powered by 84.51°, a company specialized in helping retailers, agencies and publishers unlock retail assets for advertising, it boasts data from 60 million households.

Its ads can be delivered through, partner websites and Kroger’s MyMagazine platform.

“We have everything from owned and operated, Kroger as a publisher, a commerce platform… to direct relationships and bridges we built with Disney, with Snap, with Meta, with Pinterest, with Pandora,” Pratt says.

The interview was conducted by Mike Shields, CEO, Shields Strategic Consulting.

You’re watching “AI: Powering an Optimized Advertising Ecosystem,” a Beet.TV Leadership Series produced at CES 2024, presented by DoubleVerify. For more videos from this series, please visit this page.