Home Depot, Kroger and other retailers use RMN for better ad experiences //

Retail media networks are a growing advertising channel. The IAB estimated that RMN revenues in 2022 would be $37.5 billion in its Internet Advertising Revenue report.

The success of RMN is based on how brand interactions can improve the shopper’s experience. The Home Depot and Kroger have been developing media networks for years with this in mind. A branded ad that interrupts a customer’s journey is not good for the brand, retailer, or most importantly the customer.

When customers are researching products, we can help.

What are the best places for brands to get involved in customer journeys? A supplier approached The Home Depot about retargeting their customers on social media. The company soon created an opportunity for other suppliers who wanted to drive customers to retailer’s product pages to run ads.

It was in 2018. Retail Media+, also known as RM+, was launched by The Home Depot in 2019. Brands can now show their ads on the company’s owned properties including homedepot.com and its app, in stores and via email. They also have access to offsite media channels such as social media and video.

Melanie Babcock is vice president of Retail Media+ and Monetization at The Home Depot. Our customer spends considerable time on our website before making a purchase decision. They are evaluating whether they have the necessary tools, skills, and time to complete a particular project. Installing a light on your own is a good idea. Traditional retailers have a much shorter consideration period.”

Due to the longer and more complex customer journey, the retailer decided to give suppliers the lion’s portion of the RMN ad stock. This means that the majority of ads that are shown to customers on their journey will be endemic products that they can buy at Home Depot.

Babcock said that “on-site and in-store” are closely connected. We see this in the behaviors of our customers, and wanted to add to that by keeping them in mind. We’re bringing in the supplier to the customer journey.”

Precision with customers is a personalized service

Kroger Precision Marketing, a robust RMN from the supermarket chain Kroger, is another large retailer. KPM is run by 84.51@, a fully-owned subsidiary.

Brian Spencer, KPM’s marketing director, said that data science is the common denominator. We have a legion data scientists under 84.51@. In our stores, we have shelf assortments and other personalization areas. “The same talent pool is also what drives the personalization of Kroger Precision Marketing.”

Before starting its retail media division, Kroger created digital experiences that allowed customers to search for products, create shopping lists, and receive digital coupons. KPM was able to introduce brands using these tools in an engaging way.

Spencer stated that 90% of the top 500 search terms in Kroger’s digital touchpoints are unbranded. This means that many customers are searching for products without having a brand in mind. It is only logical to direct these customers towards a particular brand or product.

Digital customers are multitaskers and don’t just look for products at Kroger stores. You might be planning a Super Bowl Party and need snacks. What if you are also considering a new television? Non-endemic brands are useful in cases like this, as well as many others.

Spencer said that when exploring non-endemic options, the first thing that comes to mind is whether or not this will be intrusive and obnoxious for our customers. We’ll look at it if we think that the idea is beneficial to our customers.

Extending to Offsite Journeys

Spencer said that “Retail media information is extremely beneficial for all types of brands, especially in the grocery sector.” The average grocery shopper makes purchases multiple times per month and sometimes even more than once per week. These purchases are made across many different categories.

He said that while consumer packaged goods (CPG) need this information, there is a greater interest outside the CPG industry because non-endemic brands want to find relevant ways to reach their audiences. “Automotive or fast food brands may see our data set as a way to reach audiences across the web.”

KPM’s fastest growing area is RMN offsite. Kroger is a long-time partner of streaming service Roku. Disney Advertising announced this week a partnership between KPM and some Disney media properties. This includes Hulu.

Dig deep: Kroger’s Retail Media Network Business now includes CTV

Spencer said that “Brands and agencies can activate CTV and programmatic display through the DSPs of their choice and set their safety standards, activate via a self-service web portal, and then see results, optimize for in-store sales and online sales.”

He added that “Retail media” is increasingly being treated as a media. “It is becoming a bigger part of what agencies consider when evaluating the total touchpoints. The traditional boundaries between brand marketing and shopper marketing are blurring.

Home Depot also looks at ways to expand RM+ into CTV. The Home Depot is also testing in-store video screens, at 50 locations. This will allow them to better understand how to enhance the digital journey of shoppers once they arrive in store.

Babcock said, “The last mile of advertising is the most expensive.” It’s important for our supplier to be able to reach out to the customer, and to learn more about them.

The post Home Depot and Kroger Use RMN To Improve Shoppers’ Ad Experience first appeared on MarTech.