Kroger Precision Marketing has added Snapchat to its retail media offerings, allowing advertisers to use Kroger’s first-party data to target consumers with Snap or Story ad campaigns.
- Examples of segments available for targeting include current, lapsed and brand new customers; category shoppers; buyers by payment type; and shoppers by dietary preferences (vegan, gluten-free, etc.).
- Lookalikes for audience extensions and Snapchat interests and user behavior are also available to advertisers.
This follows Kroger’s retail media program’s recent expansion to include video and connected TV inventory.
Why Snapchat? According to a 2021 study commissioned by the platform and internal data, it has over 363 million daily active users with a global spending power of $4.4 trillion and reaches over 75% of 13- to 34-year-olds in over 20 countries, representing over 50 % of global advertising spend.
- We forecast Snapchat’s ad revenue to reach $2.23 billion this year, growing nearly 15% year over year. Ad revenue per user will equal $25.28 as users spend 2.4% more time on the platform than last year.
Race to the top: With the phase-out of third-party cookies and federal privacy regulation looming, quality data has never been more important.
And Kroger isn’t the only one to recognize that. Everyone from Walmart and Lowe’s to DoorDash are getting into the retail media game, hoping to capitalize on brands’ reliance on first-party consumer data.
It’s also good timing, as we forecast retail media ad spending will reach $37.39 billion this year and experience double-digit growth through 2024.
Better together: While the Kroger-Albertsons deal still hangs in the balance, neither company has been shy about acknowledging the ultimate goal of the merger: retail media dominance.
Together, the companies’ combined footprint would create one of the largest retail media channels in the US with a reach of 85 million households, giving it an edge over Amazon, Instacart and even Walmart.
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