Kroger to launch targeted audio ads in store

Dive Brief:

  • Kroger has teamed up with audio and advertising solutions firm Vibenomics to target shoppers with in-store audio ads from CPG companies, according to a press release. The partnership will fall under Kroger’s 84.51° data analytics division.
  • The deal is set to begin July 20, and will consist of broadcasting a specialized, private audio network at Kroger stores. The new ad program will span more than 2,300 Kroger locations.
  • Kroger will work with Kroger to identify which advertisers, brands or products should be promoted on the Vibenomics network.

Dive Insight:

Kroger has shown a major commitment to digital ad campaigns and innovative ways to reach shoppers in recent months. This latest effort to bring audio ads to consumers in-store could resonate with people who still stand by the traditional shopping experience. 

Vibenomics, which expects to be in 8,000 convenience and grocery retail outlets by 2021, said it reaches up to 17% of shoppers within its coverage area. The company’s audio network gives brands a platform to influence shoppers while they are on the path to purchase. 

The programmatic ads won’t be personalized to shoppers, but they will be targeted strategically based on weather, local events and other factors, the companies said. 

Retailers are working hard in an era increasingly defined by e-commerce to capture more CPG marketing dollars, and CPG companies in turn are on a constant quest to reach consumers in a more targeted manner. Kroger has made ongoing efforts in this space, launching special platforms and designing shopper data programs to improve ad reach.

Kroger’s investment in 84.51° holds strong as it looks to remain technology-focused as part of its Restock Kroger initiative. On Tuesday the retailer announced plans to have chief information officer Yael Cosset take over control of the division, while 84.51°’s current CEO moves into a role as Kroger’s chief merchant and marketing officer. 

Kroger also announced Thursday the selection of Dentsu Aegis as its integrated marketing agency of record. The company said it will use the partnership to continue expanding its “Fresh for Everyone” campaign and reach customers in more modern, innovative ways.

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