Kroger, Disney Combine Retail Media Insights & Streaming Content for CPGs

Jacqueline Barba
Digital Editor
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Disney Advertising has launched a “limited beta test” with Kroger Precision Marketing (KPM), the retail media arm of Kroger’s 84.51 data science and loyalty subsidiary, that enables CPGs to offer ads on Hulu targeted to consumers using the grocery giant’s shopper data and retail media insights.

Disney is testing the streaming TV ads with a small group of CPG brands across a select inventory from The Walt Disney Company’s portfolio of entertainment and sports offerings, beginning with Hulu, according to a joint April 19 media release. PepsiCo was the first advertiser to work with KPM and Disney during alpha testing.

The partnership comes at a time when streaming environments, connected TV and digital-out-of-home ad formats are on the rise, as is demand from marketers for proof-of-performance through advanced targeting and measurement, and more accountability from their media investments.

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“The collaboration with Kroger Precision Marketing and Disney provides an exciting opportunity for brands to meet consumers where they are by leveraging KPM’s first-party consumer data to reach the right shopper at the right time,” Carol Simpson, senior director of shopper marketing at PepsiCo, said in the release. “As consumers spend more time with streaming TV, it is increasingly important for industry providers and advertisers to work together to bring innovative solutions like this to the marketplace.”

By connecting Disney’s “premium” media inventory with KPM’s data science capabilities, the partners aim to give advertisers the ability to reach audiences through streaming content and ultimately measure the sales impact on the back end across Kroger stores, per the release.

The collaboration includes three key elements:

  1. The combination of Disney’s audience graph and Kroger’s data derived from the 60 million annual households shopping at its stores aims to improve efficiency and outcomes through purchase-based data science and audience-based advertising.
  2. CPG marketers can determine/target audiences based on adjacency to Disney's TV shows/streaming portfolio (e.g., ABC, Disney+, ESPN Networks, FX, National Geographic and Hulu).
  3. KPM closes the loop between media exposure and sales, allowing brands to measure the in-store and online sales impact of advertising. Advertisers will receive retail sales, household penetration, and segment level insights.

A select group of CPG brands will participate in this exclusive beta program, which KPM and Disney plan to roll out to the general market in the second half of 2023.

“We have a relentless focus on inspiring shoppers and growing brands,” Cara Pratt, senior vice president of KPM, said in the release. “Together with Disney, we’re building more meaningful moments with measurable brand impact.”

Disney Advertising manages ad sales and integrated marketing for The Walt Disney Company’s entertainment and sports offerings through linear, digital, social, audio and ad-supported streaming businesses. This includes ABC, ABC News, Disney+, Disney Channels Worldwide, Disney Digital, ESPN Networks, ESPN+, Freeform, FX, National Geographic, Hulu and its eight ABC-owned local stations. On Dec. 8, 2022, Disney launched advertising on Disney+.

MARK YOUR CALENDAR: Don't miss our Learning Lab on the incrementality of retail media, planning, activation and measurement and roundtable Q&A, featuring industry experts from Kroger Precision Marketing/84.51, Skai, Incremental and firstmovr on May 10. P2PI members can register at no cost. Learn more and register, here.