We purchase straight on our media platform and with our properties.
Brands want to understand what consumers purchased, however possibly just as crucial is what they may be most interested in purchasing next. We can choose people who are buying chips and people who buy that brand name. Also individuals who buy hot sauces, or things that typically are in the cart with hot sauce. Does this individual go for deals like, “Buy one get one half off”?

“The Sell Sider” is a column composed by the sell side of the digital media neighborhood.
Todays Q&A is with Kroger Precision Marketing VP of media technique Michael Schuh.
Kroger, the biggest grocery chain in the United States, is capitalizing on significant swings in shopping patterns considering that the COVID-19 pandemic as it expands its retail media company.
For one thing, online and in-app groceries went from being a hardly consequential fraction of Krogers day-to-day shoppers to a primary source of demand. And the trend is holding. Even compared to the worst duration of nationwide lockdowns last year, Krogers online purchasing continues to grow. Online sales have more than doubled given that the end of 2019, according to the grocers newest earnings in June, and the business forecasts another doubling by the end of 2023.
On top of this nonreligious trend, Kroger Precision Marketing VP of media method Michael Schuh stated the online marketing market has concerned realize that “a reset requires to take place” soon with a focus on first-party data as a source for targeting and measurement.
The opportunity for retail media in the brand-new programmatic landscape is hardly new– Amazon, Walmart and Target, among other large sellers, are all investing heavily in advertisement tech.
AdExchanger overtook Schuh about how Kroger puts its retail data to use in digital media.
AdExchanger: What media, owned-and-operated or not, is offered on the advertisement platform?
MICHAEL SCHUH: We have a varied portfolio of items. The one that brands most likely think initially about, particularly in a retail environment, is on-site search or item listing ads within search engine result on Kroger.com and in the mobile app. We have on-site screen as well within the Kroger digital properties.
And then off of the owned homes, were likewise focused on leveraging Kroger information to construct audiences that connect into direct publisher relationships. We call it off-site media. One collaboration is with Roku; that was formed a little over a year earlier. We also can activate Kroger audiences and measurement throughout social channels, throughout the open web, for email projects, and as I said there are a variety of other direct publisher collaborations.

How would you classify KPM, in terms of being a DSP, SSP, some hybrid or none of the above?
It depends which part of our portfolio theyre dealing with. To some extent, were clearly the supply side. We have stock on Kroger homes that we are opening up, and we do not open that up in other DSPs. We buy straight on our media platform and with our possessions.
However then we also use our audiences and our measurement items to feed into and affect what a brand name learns with their own spend in, say, some other DSPs or another environment.
Our focus is on enabling our measurements and audiences to live anywhere people wish to purchase, satisfying marketers where they are. Yes, we can buy it ourselves. We have our own buying and execution team here. And we can operate sort of as a managed service because capability. But were likewise enabling self-serve use cases, any place brand names want to focus their time.
If youre purchasing direct stock, you buy that directly through our self-serve tools. And Kroger data can, with cookies going away and any number of other barriers for online data, help to make that project more accountable and more performance-oriented, even if we do not manage the invest ourselves.
Are there examples of direct publisher combinations that have had success for you?
I mentioned the partnership with Roku. They are the top streaming platform in the US. What it means is we can pipe our audiences into their inventory, and link the actual media direct exposures and connect that back to sales. Thats likewise a stock offer for media that we can offer directly.
We likewise have a partnership with Meredith. Think about a title like Allrecipes, the no. 1 dish and grocery focused website.
Youll see us continue to broaden our publisher direct relationships in time.
Are there ways to use your information, aside from connecting to deals and store lift?
The main source that we pull from is our first-party purchase data. Brands wish to know what consumers bought, however possibly just as crucial is what they might be most interested in buying next. There are a great deal of actually interesting and beneficial signals we can pull out of that information.
One example we use is when an existing brand name is launching a brand-new line extension or something with brand-new flavors. We can not only pull their existing purchasers and buyers in the classification, but who else buys that similar taste from the rest of the shop? So, state its a new flavor of chips or something, right? Like theyre checking hot sauce flavored chips. We can select individuals who are buying chips and people who purchase that brand name. However also individuals who purchase hot sauces, or things that typically remain in the cart with hot sauce. There are some actually special combinations that we can create.
There are also other contextual signals and product attributes that could be crucial. Does this person go for offers like, “Buy one get one half off”? And there are other ways to target by cost understanding– like if theyre most likely to pick the item thats on sale, or is the most inexpensive on the rack. We in fact use thousands of various information signals, as part of the intelligent audience science in our system. And there is custom work off of brand information in a great deal of cases that truly constructs the most optimum audience within our community.
Is your measurement report deterministic– you reached X number of Kroger consumers and Y of them acquired your item– or is it a more probabilistic step of general sales lift?
A little bit of both, however its more so the latter.
We report back on sales lift, on household penetration lift and on return on advertisement spend. That does not mean we dont also report on some of the standard intermediate metrics on impressions, on viewability and on click-through rate, however we know that a brand is concentrated on real outcomes. Brands wish to see what worked and what drove sales, incremental growth and brand-new clients. Thats what most of our reporting focuses on.
Whats the rate of sponsored vs organic listings for searches on the website or app?
The precise rate is a tricky concern to respond to due to the fact that searches on Kroger actually leverage a great deal of that client information and are individualized if theres any buyer history. And we really think that thats a vital part of the experience.
Take a look for “granola bar.” If theres one specific brand name or kind of granola bar that somebody purchases all the time, we at Kroger need to make it truly easy for them to find that product in the primary area or certainly above the fold.
Thats not the way it works on all retail media platforms. There can be an inverse dynamic where, an advertiser can pay to get in front of that and reduce the product that customer desires, if another brand pays enough.
We want the advertiser bidding for an impression when someone is considering what to buy. Not when they know precisely what theyre going to purchase, as an opportunity to get in the method of that.