Kroger Precision Marketing (KPM), the advertising arm of U.S. retail giant Kroger, has unveiled its latest innovation: off-site programmatic advertising capabilities. This move enables brands to take campaigns beyond the Kroger digital ecosystem and to consumers across both third-party websites and apps, while using Kroger’s proprietary shopper data.
The announcement highlights the rising importance of programmatic advertising in the retail and CPG sectors, where there is a rising demand for marketers to require measurable, data-driven results in their advertising efforts. By adding to the link options, with off-site, KPM hopes to offer a seamless bridge between Kroger’s first-party insights and high performing advertising in the open web.
Bridging First-Party Data with Programmatic Reach
Kroger is well known for advanced use of first-party shopper data, providing personalized marketing on various parts of the store and their digital channels. With the extension of its programmatic advertising into off-site channels, brands can now deliver highly targeted advertising across populations well beyond Kroger’s ecosystem while still being as relevant and personalized.
“Our goal is to empower marketers to reach the right shopper, wherever he or she may be,” said Paula Santilli, President at Kroger Precision Marketing. “By combining first-party information with channels outside of our website, we are providing campaigns that not only provide visibility but they’re also measurable in terms of actual purchase behavior.”
This evolution of the strategy is a big one for marketers looking to combine the precision of retail data with programmatic scale and flexibility.
Emergence of Programmatic Advertising in Retail
Programmatic advertising has revolutionised the way brands purchase and optimise their digital media. According to eMarketer, global programmatic ad spend is projected to surpass $190 billion in 2025 with leading adoption by retail and CPG companies that achieve measurable ROI and precision targeting.
Off-site programmatic advertising has a number of benefits for brands:
- Expanded Reach: Connect with consumers across third-party websites and apps
- Data-Driven Targeting: Leverage shopper behavior insights to reach likely buyers
- Real-Time Optimization: Adjust campaigns dynamically to maximize performance
- Attribution and Measurement: Directly link campaigns to sales or other KPIs
KPM’s offer outside the supermarket setting takes advantage of Kroger’s shopper’s data proprietary data and applies AI-driven algorithms to ensure that brands appeal to the right audience at the right time.
How KPM’s Off-Site Programme Management Functions
The solution combines data from KPM (or first-party data), programmatic ad exchanges, and DSPs (demand side platforms). Key features include:
- Audience Segmentation: Activate segments based on purchase history, category affinity, and lifestyle data
- Cross-Device Reach: Engage shoppers across mobile, desktop, and connected TV environments
- Dynamic Creative Optimization: Deliver personalized ad creatives tailored to specific segments
- Measurement & Attribution: Track campaign performance from impression to conversion, including in-store purchases
By integrating Kroger’s data with programmatic technology, brands will gain comprehensive campaign performance across the continuum of digital and in-site purchasing behaviors.
Opportunities for Brands and Agencies
Agencies and brand marketers should benefit from several things from KPM’s off-site programmatic capabilities:
- Scale and Efficiency: Access broader audiences without sacrificing targeting precision
- Enhanced ROI: Optimize media spend based on real-time performance metrics
- Actionable Insights: Gain visibility into campaign performance and shopper engagement
- Integration with Existing KPM Campaigns: Combine off-site programmatic with on-site and in-store marketing efforts
“This is a game changer for CPG brands,” said Michael Torres, Senior Director of Media at one national food brand. “We can now broadcast our Kroger campaigns outside of the store and Kroger.com with the same level of standards for relevance and ROI.”
The Strategic Position of Kroger in Retail Media
Retail media networks have become increasingly prominent in the past decade, with Kroger having been one of the early pioneers of the US market. Kroger Precision Marketing has consistently been very successful and results-oriented for its clients including:
- Proprietary Shopper Data: Millions of anonymized transactions inform targeting strategies
- Cross-Channel Capabilities: In-store, digital, and now off-site programmatic
- Advanced Measurement Tools: Link marketing investments to measurable purchase outcomes
By introducing an off-site programmatic advertising solution, Kroger solidifies its niche as a comprehensive retail media partner that can bring end-to-end solutions to the table.
Industry Stakeholders and Market Trends
The move is reflective of trends in the area of retail media and programmatic advertising in general:
- Data-Driven Personalization: First-party data is now the gold standard for targeting high-intent shoppers
- Omnichannel Integration: Marketers seek unified campaigns across physical stores, websites, apps, and social platforms
- Measurement Transparency: Attribution models are increasingly tied to actual sales, rather than impressions alone
- AI and Automation: Machine learning optimizes campaigns in real time for maximum impact
Predictably, analysts believe the path to success for KPM’s off-site programmatic solution will help speed adoption of retail driven programmatic campaigns and provide inspiration for similar offerings from other retail stores, such as Walmart Connect and Target Roundel.
Forrester Research senior analyst Samantha Lee said to Darold antes It is only a natural progression from retail media for Kroger to move to off-site programmatic. “It provides a way for brands to reach beyond the retailer’s four walls with the use of proprietary data – a benefit for both advertisers and consumers.”
Early Client Adoption
Several national brands have already piloted the off-site programmatic solution to great results:
- Increased Reach: Campaigns reached millions of consumers across third-party websites and apps
- Improved Engagement: Personalized ad creatives drove higher click-through rates
- Enhanced Attribution: Marketers could track conversions both online and in-store, linking campaigns directly to revenue
“We now have the ability to reach our Kroger campaigns programmatically with some program to show results,” said Lisa Carter, VP of Marketing at a major household brand. “The integration of first party data and off-site inventory has revolutionised the way we approach digital advertising.”
Future Outlook
KPM is planning to actively grow its off-site programmatic capacity including:
- Advanced AI Targeting Models: Leveraging predictive analytics to anticipate shopper behavior
- Global Expansion: Exploring partnerships and capabilities in international markets
- Enhanced Creative Solutions: Dynamic creative tailored to consumer segments for higher engagement
As retail media networks continue to expand, Kroger’s new programmatic advertising offering from KPM, which offers measurable results between online and offline commerce, positions Kroger as a leader in the data-driven world of programmatic advertising.
Key Takeaways
- Expansion of Programmatic Advertising: KPM enables brands to execute off-site campaigns with first-party data.
- Data-Driven Personalization: AI-powered targeting connects digital impressions to real-world purchases.
- Agency and Brand Benefits: Scalable campaigns, measurable ROI, and actionable insights enhance marketing effectiveness.
- Industry Impact: Marks a milestone in retail media evolution and sets a benchmark for competitors.
- Future-Ready: Plans for AI enhancements, global reach, and creative innovation position KPM for sustained leadership.
About Kroger Precision Marketing
Kroger Precision Marketing is Kroger’s retail media arm, delivering data-driven advertising solutions for brands with a combination of in-house shopper insights, digital media experience and omnichannel reach. KPM helps achieve quantifiable business results across store/digital and now off-line programmatic advertising vehicles.