SAN JUAN, PR — What place does a supermarket giant have in the science-led digital ad data future? A big one.

Kroger Precision Marketing (KPM) is a data-driven advertising platform developed by the Kroger Co. Launched through Kroger’s subsidiary 84.51°, KPM leverages customer insights and analytics to enable personalized marketing.

Its programmatic offering, Direct Connect, launched in the fall of 2023, and has already seen hundreds of campaigns go live.

In this video interview with Beet.TV, Jill Smith, VP of Sales, Kroger Precision Marketing, explains how advertisers working from platforms like The Trade Desk can now tap into their own inventory rates and control their media buying in more sophisticated ways while making ads more relevant to their desired audience.

The data exchange value proposition

In the emerging retail media explosion, we are seeing a growing number of retailers leverage customer data for ad targeting.

Kroger’s rich data asset is rooted in a loyalty program over two decades old. With that understanding of customer behavior, Kroger is able to offer a more personalized shopping experience, and now, a tailored advertising one as well.

“When people are watching a connected TV device, we’re going to help make that advertising more relevant to that household,” Smith says.

Beyond CPGs: Expanding the data application

Traditionally focused on consumer packaged goods (CPG) companies, KPM’s data is now proving valuable across diverse sectors, like quick service restaurants (QSR) and automotive.

“We know … the Kroger customers who… are buying frozen breakfast sandwiches,” offering QSRs a clear target for new product promotions,” Smith says.

She also emphasizes the potential growth in non-endemic areas such as insurance and automotive, especially as the company looks toward 2024 with excitement.

Kroger’s science-backed approach to audience targeting

Smith is particularly enthused about the science-backed approach that KPM takes with audience targeting.

“As people come to us and they say, ‘Well, we want to reach pasta lovers’… (We ask), ‘Are you looking for convenient pasta lovers… or cooking from scratch Italian enthusiasts?'”

This granularity allows KPM to work with advertisers to reach the exact audience they desire, enhancing the effectiveness of their advertising spend.

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