Albertsons Joins OpenAI Pilot for Targeted Promotions
Albertsons Cos. is a pilot partner in the OpenAI Ad Pilot Program, which explores how new ad formats in ChatGPT can help generate more relevant, efficient and personalized advertisements for shoppers.
The program's testing began before Valentine's Day, with Albertsons' ads appearing in ChatGPT. There, when consumers entered search terms such as "chocolates and sweets as a gift" or "how to celebrate Galentine's Day," they'd potentially see distinct, clearly labeled ads from their local Albertsons banner store, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, ACME, Tom Thumb and others.
If shoppers elected to engage with the ad, they were directed to a Valentine's Day landing page featuring Albertsons deals, gifts and recipes that include fresh flowers, chocolates, candies and other ideas. Users were reminded, too, that many of these items could be delivered quickly using Albertsons' Flash fulfillment service.
The partnership arrives on the heels of Albertsons' recent launch of a "Celebrations" hub that helps customers plan various occasions.
Also read: Albertsons' Creates 'Celebrations' Hub to Help Consumers Plan
"By joining the OpenAI Ad Pilot Program, we have a unique opportunity to explore and help shape cutting-edge ways to connect consumers with the right Albertsons Companies products at the right time by thoughtfully integrating into the digital experience they already love," Jennifer Saenz, chief commercial officer at Albertsons, said in a media release. "We're focused on advertising that enhances the customer journey, instead of interrupting it. By testing ads in ChatGPT, we're growing our engagement with new customers and continuing to connect with our current customers in meaningful ways."
The OpenAI Ad Pilot Program builds on Albertsons' efforts to modernize its capabilities through technology and AI, including launching an AI shopping assistant and an Ask AI feature. Albertsons says customers are responding well to these tools, resulting in strong engagement and double-digit basket growth aided by the tools' ability to personalize and speed the path to purchase.
As the pilot program evolves, Albertsons Media Collective, the grocer's retail media arm, will be able to help its brand partners reach their target audiences through the program. Agentic commerce experiences such as AskAI and Albertsons AI are in current use by the retailer's customers, and AMC's catalog and content is optimized for use by large language models.
