As one of the largest grocery retailers in the United States, Kroger has long been a household name. But behind the shelves and checkout counters lies a data-rich advertising powerhouse: Kroger Precision Marketing (KPM).
Launched in 2017, KPM—powered by 84.51°, Kroger’s data science and analytics division—has become a leading example of how retail media networks (RMNs) can drive measurable results for brands by combining first-party data, closed-loop attribution, and precision targeting.
This case study explores how KPM has redefined media effectiveness for CPG advertisers and why it continues to be one of the most influential players in the retail media landscape.
Business Challenge
In a crowded CPG marketplace, brands are under more pressure than ever to:
- Eliminate wasted ad spend
- Prove ROI from media investments
- Reach the right consumers with relevant messaging
- Adapt to the loss of third-party cookies
Traditional digital advertising was no longer enough. CPGs needed solutions rooted in real purchase behavior, not just impressions and clicks.
The Retail Media Solution
Kroger Precision Marketing offered a solution built for performance and accountability:
- Access to 60 million households via Kroger’s loyalty program
- Granular, SKU-level data on actual purchases across categories
- Omnichannel activation across Kroger.com, in-store, CTV, social, and programmatic channels
- Closed-loop measurement, allowing brands to see exact sales impact tied to their media campaigns
KPM positioned itself not just as an ad platform, but as a strategic growth partner for brands.
Campaign Example: Personal Care Brand Drives Incremental Sales
Objective:
A national personal care brand partnered with KPM to:
- Promote a new line of shampoo and conditioner
- Reach high-propensity shoppers
- Measure incremental lift in sales
Strategy:
- Targeting: KPM used first-party data to identify households with a high likelihood of purchasing personal care products, including lapsed and competitive brand shoppers.
- Onsite Ads: Sponsored product listings appeared on Kroger.com and the mobile app during searches and category browsing.
- Offsite Activation: The brand extended its reach through programmatic display ads powered by KPM’s audience segments—targeting consumers as they browsed non-Kroger sites.
- Measurement: All impressions were tied back to sales at Kroger stores and online.
Results:
- 11% incremental sales lift among exposed households
- 4:1 return on ad spend (ROAS)
- Significant increase in trial and repeat purchase of the new product line
Strategic Impact
KPM’s success wasn’t limited to one campaign. Over the past several years, the platform has demonstrated:
- Retail Data as a Competitive Advantage
Kroger’s loyalty data provides unmatched visibility into consumer behavior, helping brands make smarter targeting and investment decisions. - High Accountability Through Closed-Loop Measurement
Unlike traditional media, where sales impact is often estimated, KPM directly connects ad exposure to purchase activity, giving brands clear, actionable insights. - Full-Funnel Reach with a Commerce-Driven Mindset
From awareness to conversion, KPM enables brands to engage shoppers across the path to purchase—with messaging optimized by real-time performance.
- Adaptability in a Privacy-First Era
As third-party cookies disappear, KPM’s first-party audience engine has become a critical solution for brands navigating the shifting digital landscape.
Industry Recognition & Growth
Kroger Precision Marketing has earned widespread recognition for setting the standard in retail media:
- In 2022, KPM partnered with Roku to launch shoppable CTV ads with verified in-store sales attribution—a first in the grocery space.
- KPM was named a Top 10 Retail Media Network by Path to Purchase Institute.
- In 2023, Kroger announced the expansion of KPM’s self-service platform, giving advertisers more control over campaign execution and reporting.
Retail Media Done Right
Kroger Precision Marketing is a textbook case of retail media done right. By building a platform grounded in real-world purchase behavior, accountability, and omnichannel reach, KPM has helped brands achieve powerful business outcomes while reshaping how performance is measured in retail advertising.
As brands look to future-proof their strategies, KPM exemplifies how retailers can become not just media sellers—but media innovators and growth partners.
