Kroger Precision Marketing Now Offering Incremental Sales Measurement
Kroger Precision Marketing (KPM), the retail media business of Cincinnati-based grocer The Kroger Co., is bringing incremental sales reporting to self-service programmatic campaigns. Incremental sales measurement is now available for qualified campaigns placed through The Trade Desk, based in Ventura, Calif. The new capability, launched in December, isolates the impact of media spend by comparing exposed audiences with a control group that mirrors the advertising audience. Progressive Grocer was able to find out more from Brian Spencer, KPM’s marketing director.
Progressive Grocer: Why was it thought necessary to develop this solution?
Brian Spencer: This is about making advertising accountable to real-world results. While many programmatic solutions focus solely on CPM [cost per mille] or ROAS [return on ad spend], we’re going a step further by distinguishing between attributable and incremental sales.
And working with existing leaders in ad tech – like The Trade Desk – is important. Retail data can help brands grow their business, but they need to be able to apply the data in their existing tech stack.
PG: How was the solution developed and tested?
BS: To power ad optimizations, we already offer in-flight attributable sales measurement in programmatic campaigns, so it was a natural next step to create incremental sales reporting.
Unlike standard attribution (or ROAS), incremental metrics isolate the sales lift from advertising through control groups that precisely match the exposed audience. This ensures that only the true sales lift driven by the advertising is credited, giving brands a more accurate view of their impact.
Our in-house data science and ad tech teams worked closely with our colleagues at The Trade Desk to bring it to life in their self-service platform.
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PG: Provide an example of how this solution works, and what advertisers who use it can expect to see?
BS: Our approach uses a control audience that mirrors the exposed audience. The only difference is media exposure. By isolating and measuring the difference, we can confidently understand the true incremental impact. This methodology adheres to IAB [Interactive Advertising Bureau] standards and best practices for incremental sales measurement.
There’s no extra work or steps for advertisers. Reporting is available for KPM self-service advertisers using The Trade Desk DSP [demand-side platform] across display, streaming, audio and more. The reports show total and incremental uplift of sales, household penetration, units and visits.
PG: Which advertisers are eligible to use this solution?
BS: The reporting is in-market now. Any Kroger Precision Marketing campaign which meets minimal spend requirements through The Trade Desk is eligible.
