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04/19/2023

Kroger Makes a Big Retail Media Deal With Disney

Grocer to share first-party shopper data for targeting streaming audiences on Hulu
Gina Acosta
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Kroger is sharing shopper data with Disney's Hulu as a way to target ads on streaming TV.

Kroger has "Great Expectations" from a new partnership with Disney's Hulu.

Kroger Precision Marketing, the grocer’s retail media arm, has teamed up with Disney Advertising to share first-party shopper data for targeting streaming audiences -- at first on Hulu, which streams shows such as "Great Expectations," "The Bear" and "Fleishman Is in Trouble" -- and measuring the results, including sales and conversions by household.

This solution is launching at a time when marketers are demanding more proof-of-performance through advanced targeting and measurement, and more accountability from their media investments.

“While the industry is focused on identifying alternative currencies, Disney is doubling down on driving real-world results for brand clients each and every day,” said Lisa Valentino, EVP, Client Solutions and Addressable Enablement, Disney Advertising. “The unrivaled reach of Disney, amplified through retail media insights from one of America’s leading grocers, results in a better experience for both viewers and advertisers, and actionable results for our clients.”

By connecting Disney’s premium inventory to Kroger Precision Marketing’s data science capabilities, advertisers can reach audiences through the most impactful streaming content and ultimately measure the sales impact on the back end across Kroger stores.

PepsiCo was the first advertiser to work with KPM and Disney during alpha testing.

“The collaboration with Kroger Precision Marketing and Disney provides an exciting opportunity for brands to meet consumers where they are by leveraging KPM’s first party consumer data to reach the right shopper at the right time,” said Carol Simpson, Sr. Director of Shopper Marketing at PepsiCo.  “As consumers spend more time with streaming TV, it is increasingly important for industry providers and advertisers to work together to bring innovative solutions like this to the marketplace.”

The solution drives mutual value for viewers and brands in three ways:

  1. Powering Audience-Based Advertising: The combination of Disney’s unrivaled audience graph and 60 million annual households shopping at Kroger will create efficiency and improve KPI’s through purchase-based data science.
  2. Scaled Streaming Library: By connecting advertisers to Disney's streaming portfolio featuring the best news, sports and entertainment, marketers can move the needle with audiences adjacent to the most premium content in the streaming space.
  3. Measurable In-Store and Online Sales Impact: Kroger Precision Marketing closes the loop between media exposure and sales, allowing brands to measure the business impact of advertising. Advertisers will receive retail sales, household penetration, and segment level insights.

A select group of consumer packaged goods (CPG) brands will participate in this exclusive beta program, and is slated to be available to the general market in the second half of 2023.

“We have a relentless focus on inspiring shoppers and growing brands,” said Cara Pratt, Senior Vice President of Kroger Precision Marketing. “Together with Disney, we’re building more meaningful moments with measurable brand impact.”

Cincinnati-based Kroger has almost 2,800 retail food stores under a variety of banner names. The company is No. 4 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.