Dive Brief:

• Ahold Delhaize USA, which owns Peapod Digital Labs, announced today that it has launched a digital media service called Peapod Digital Labs Media Partnerships. Powered by Quotient, the new platform will be used to provide insights and data for optimizing and targeting both online and offline shopping experiences for customers. 
• Grocery brands operating under Ahold Delhaize including Food Lion, Giant Food, Giant/Martin's, Hannaford, Peapod and Stop & Shop will all utilize the new platform to better engage with customers and incorporate CPG partners into their marketing efforts.
• Peapod Digital Labs Media Partnerships will offer a variety of tools and point-of-sale-data to drive online grocery sales, launch new products and build brand loyalty for grocers and their suppliers. The platform will deliver digital coupons, store locators, add-to-cart recommendations, influencer-led social platform experiences and more to help customize the shopper experience for Ahold Delhaize customers.  

Dive Insight:

With the ongoing rise of e-commerce, grocers have more reason and access to technology than ever to leverage customer data to personalize the shopper experience. Digital media services make it easier for grocery companies to boost online traffic and sales, grow revenue and help suppliers maximize their online marketing dollars.

Ahold Delhaize has been heavily focused on technology and digital efforts lately, announcing plans to double online sales in the next few years and unveiling its investment in robotics. It's clear that the company is serious about expanding its e-commerce capabilities and utilizing every digital tool possible to strengthen its position. 

Having in-house digital media capabilities is also a valuable tool for suppliers and CPG partners, who are looking for both ROI and creative approaches to digital advertising when they invest marketing dollars with grocers. Ideally, this data-driven digital approach should result in higher online grocery sales — with features like "add to cart" and quick, targeted online coupons making it easier for shoppers to buy online. 

Ahold Delhaize is not the first grocer to unveil a digital media business in-house. Walmart may have been the pioneer in this effort, having started its own platform in 2014. Early this year, Albertsons launched Albertsons Performance Media, which helps the grocer and more than 60 of its CPG partners to build targeted ad campaigns and utilize a number of platforms to reach its shoppers. Kroger also has its own digital media platform through Kroger Precision Marketing to deliver relevant, personalized content and ads to shoppers, and Southeastern Grocers introduced SEG Media Hub over the summer.

Retailers will need to stay on the cutting edge of digital media and advertising to keep their suppliers engaged. A number of other firms that specialize in digital marketing solutions and data-driven services can quickly adopt the latest technology, and have the potential to steamroll grocers’ efforts if grocery companies are not investing or moving quickly enough in their platforms. CPG companies can just as easily pay a firm to manage their ad spends, but there's a bigger benefit to partnering with retailers if they can deliver strong results and stay on top of customer trends.