Kroger Measures Carbon Emissions of Retailer Media Network

Kroger Precision Marketing (KPM), the retail media arm of Kroger’s 84.51 data science and loyalty subsidiary, has become the first retailer media network to measure digital supply chain carbon emissions through Scope3, a firm that helps brands and publishers to decarbonize their digital ad buying.

The duo’s plan calls for Scope3 to measure carbon performance associated with offsite media campaigns placed through KPM, according to a media release.

“Media companies need to take action,” Cara Pratt, senior vice president of KPM, said in the release. “The digital economy is energy-intensive — but we can reduce the impact today by eliminating wasted ad impressions. Scope3 is at the center of industry efforts to measure and verify the carbon output of the digital supply chain. This commitment paves the way for retail media to make publishers and ad tech more energy-efficient through precision audiences.”

The partnership comes at a time when KPM says advertisers are faced with signal loss and concerns about the efficiency of programmatic media.

“Running tens-of-millions of digital ad impressions only to reach thousands of relevant consumers is not sustainable for business or the environment,” Brenda Tuohig, chief commercial officer of Scope3, said in the release. “Kroger Precision Marketing uses in-store purchase signals to cut advertising waste, while Scope3 does this by helping advertisers identify and avoid high emissions inventory. Combining the two will improve marketer outcomes while reinforcing that what’s good for business is also good for the planet.” 

The agreement will use Scope3’s open-source methodology and emissions model to measure the carbon impact by applying Kroger’s audience data to offsite media campaigns. The resulting benchmarks will eventually allow advertisers and agencies to compare the environmental impact of KPM relative to other solutions, per the release.

“In order for the media industry to effectively reduce energy waste, we must do so through trusted verification,” Susan Schiekofer, chief digital investment officer, Group M North America, added. “Partnering with Scope3 and Kroger allows us to provide our advertisers with informed and transparent media buys that lead to greater accountability across advertising.”

Earlier this year, Ad Net Zero, a climate action program, revealed KPM as the first retailer media network to support its sustainability efforts in the advertising industry.

“We’re committed to using our precision data science to make a lasting change,” Pratt said. “We’re proud to be associated with organizations leading the industry in education, measurement, and standards which will reduce carbon emissions from advertising operations.”

In 2023, The Path to Purchase Institute’s annual Trends Survey of brand managers ranked KPM as the No. 1 retailer media network for audience, measurement and traffic-driving capabilities.