Dive Brief:

• Albertsons Companies' digital media platform is delivering as high as two times return on ad spend compared to Nielsen benchmarks for CPGs over the past year, according to a news release from the company. The Albertsons Performance Media (APM) platform, powered by Quotient Technology, gives brands access to proprietary shopper data to target shoppers on digital channels and drive sales across the retailer's network for more than 2,300 stores in 35 states.
• PepsiCo is among the brands using the APM platform, which has executed 300 campaigns on behalf of 150 CPG companies. During a five-week promotion last summer, the beverage giant used the Albertsons platform to promote the brand's music history on retro-styled cans and connect Pepsi's local music assets with shoppers. Pepsi saw sales outperform other grocery stores during the promotion.
• APM has also delivered 21 influencer campaigns with 13 brands and four national campaigns, producing over 200 million targeted, verified impressions as a result of its acquisition of Ahalogy in 2018. General Mills used the service to promote Oui by Yoplait, a French-inspired line of yogurts packaged in glass pots.

Dive Insight:

In an era when CPGs are shifting the majority of their online marketing budgets to Amazon, grocers are fighting to retain those trade dollars. Digital media ventures like Albertsons Performance Media helps suppliers measure the effectiveness of their online ads, potentially adding value for both parties while also strengthening their relationship.  

In addition to better online targeting, enhanced digital marketing efforts can help retailers drive physical sales. Albertsons states that CPGs using its platform can target shoppers around in-store events with specific branded messages in advance of and during their shopping trips. These campaigns can promote new products and incentives and run on a localized or national level, allowing for more flexibility when it comes to developing and executing campaigns.

Retailers including Southeastern Grocers, Kroger and Giant Eagle have recently added digital marketing enhancements to their suite of offerings. Walmart, meanwhile, has said it wants to invest more in online advertising.

Prior to grocery chains offering their own advertising platforms, CPGs had to get shopper data from third-party sources, according to a Bloomberg report cited by Grocery Dive. The return on investment was murky at best. The ability for brands to use data from specific retailers to push products in their stores could be a more effective way to understand whether they're targeting the right audience.

The news also points to how in-store shopper data is becoming a key asset for CPGs as marketing strategies increasingly become more omnichannel. The ability to connect in-store purchases with digital marketing allows CPGs to enhance campaigns by delivering messaging based on in-store purchases and better measure the returns on these investments.

"Albertsons Performance Media has been a seamless digital solution for Pepsi running smart, efficient campaigns that garner results," Stacey Nachtaler, shopper marketing director at PepsiCo, said in a statement. "We're already working with Albertsons and Quotient on additional campaigns."