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Kroger Challenges Amazon and Walmart in Advertising Battle

Kroger Challenges Amazon and Walmart in Advertising Battle

CINNCINNATI, OH – There’s a new stage for the major retail showdown, with the likes of Amazon, Walmart, and now, American grocery brand Kroger, squaring off over their advertisement businesses. While Amazon has its in-house Amazon Marketing Group, and Walmart has Triad Retail Media, Kroger, as of three years ago, now has the data analytics sector of agency dunnhumby, 84.51°, to form its own consumer insights, and the purchase is finally bearing fruit. New to the ring, but a force to be reckoned with, Digiday reports Kroger is selling its suppliers ad units and solutions along with developing a programmatic platform set to go live next year.

Cara Pratt, VP of Customer Communications Product Strategy and Innovation, 84.51°“You can say that we borrowed the Triad model, but the differentiation is our ability to personalize the experience,” said Cara Pratt, VP of Customer Communications Product Strategy and Innovation for 84.51°, according to Digiday. “We can connect 96 percent of Kroger transactions to a customer, which allows us to serve very targeted product placement and drive better conversion.”

One way Kroger is gathering program and purchase data from its mobile apps, brand website, and 2,800 stores across 35 states in the U.S., is through the retailer’s loyalty card program, which drives 90 percent of the retailer’s sales, and is allowing the company to help its suppliers post targeted ads on Kroger’s properties and around the internet–a tactic Amazon and Walmart also rely on.

The retailer will also offer an increase of on-site advertising on Kroger.com, managed by 84.51°, who is also responsible for developing the programmatic platform that will be available in the next year to let advertisers buy ads on Kroger.com.

Kroger storefront

Last month, Kroger also reported 4.5 percent growth between July and September after generating $27.7 billion in sales.

With Kroger fully in the ring, squaring off against competitors like Amazon and Walmart, will the retailer’s new advertisement tactic pay off in the long run as sales continue to increase? AndNowUKnow will continue to report on the latest.