Kroger’s retail media business is partnering with e-commerce software company Pacvue to help CPG brands manage their advertising campaigns on Kroger.com.
Working with Kroger Precision Marketing (KPM), the supermarket giant’s retail media arm, Seattle-based Pacvue said Monday that its software suite will enable Kroger’s advertisers to create cost efficiencies, build share of voice and increase sales. Its marketplace advertising platform offers intelligent automation, optimized bidding and robust reporting tools.
For example, using Kroger Product Listing Ads in a pay-per-click solution, brands can set the bid price for individual products within an ad campaign, according to Pacvue. The selected products are then eligible to receive a boost in search results where they already appear organically.
“We’re thrilled to welcome Pacvue as an API [application programming interface] partner, and we look forward to working together to bring new innovation to the retail media industry,” Michael Schuh, vice president of product strategy and innovation at Kroger Precision Marketing, said in a statement.
Pacvue’s solution for Kroger includes dashboards that allow CPGs to collect campaign metrics that can be customized to focus on specific key performance indicators (KPIs), including return-on-ad sales and cost per click. In addition, share-of-voice tracking allows manufacturers to gain competitive intelligence with brand- and product-level monitoring of paid and organic visibility on the digital shelf, while artificial intelligence-based optimization tools work on dayparting capabilities (ads scheduled for different times of the day) and bulk operations.
The ability to advertise through Kroger’s vast digital and physical properties gives CPG brands tremendous reach. According to Kroger Precision Marketing, 9 million people shop at Kroger daily, and KPM captures 97% of those transactions. What’s more, Kroger generates 2.8 billion annual visits and serves 60 million U.S. households.
The nation’s largest supermarket retailer, Kroger operates about 2,800 grocery and multi-department stores in 35 states under more than 20 banners, including Kroger, Ralphs, Dillons, Smith’s, King Soopers, Fred Meyer, Fry’s, QFC, City Market, Owen’s, Jay C, Pay Less, Baker’s, Gerbes, Harris Teeter, Pick ‘n Save, Metro Market, Mariano’s, Food 4 Less and Foods Co.
“We’re excited to partner with Kroger Precision Marketing to unlock America’s largest grocery retailer as a new advertising network to our clients. In an omnichannel world, it’s important for brands to invest on the channels where their customers choose to shop,” commented Melissa Burdick, president of Pacvue, which also works with Amazon, Walmart, Instacart, Target and Albertsons.