Disney and Kroger just inked a major retail media partnership
Kroger's first-party data will provide insights for advertisers on Hulu, such as PepsiCo.
Photo by BoliviaInteligente on Unsplash
Kroger's first-party data will provide insights for advertisers on Hulu, such as PepsiCo.
The advertising arms of Disney and Kroger are combining retail media and streaming inventory in an effort to expand opportunities for brands to effectively reach audiences, and measure the impact of advertising on sales.
The news: Disney Advertising and Kroger Precision Marketing are launching a collaboration that will make first-party data from the Kroger retail media arm available to advertisers for targeting and measurement on streaming TV platforms in Disney’s portfolio. The limited beta test will start with Hulu, and a select group of CPGs are being invited to participate. The program is expected to roll out to the general public in the second half of 2023.
What are the benefits? The companies said this collaboration combines data science capabilities from Kroger Precision Marketing with Disney’s capabilities to provide premium inventory on its streaming platforms that reaches consumers on their couch, just like traditional TV. Specifically, the partnership is focusing in three areas:
Audience: The combination of Disney’s audience graph and data from 60 million annual households shopping at Kroger will “create efficiency and improve KPI’s through purchase-based data science,” the companies said.
Content: Advertisers will be able to reach people while they view news, sports and entertainment programming across streaming platforms. Alongside Hulu, the company’s portfolio includes Disney+ and ESPN, so there's room to make an even bigger impact as the program expands.
Measurement: With Kroger Precision Marketing data, brands can measure whether advertising helped lead to a sale. This allows them to “close the loop” between an advertising campaign and a sale, the companies said. In particular, advertisers will receive data on retail sales, household penetration and segment level insights.
Key quote from Lisa Valentino, EVP of client solutions and addressable enablement at Disney Advertising: “While the industry is focused on identifying alternative currencies, Disney is doubling down on driving real-world results for brand clients each and every day. The unrivaled reach of Disney, amplified through retail media insights from one of America’s leading grocers, results in a better experience for both viewers and advertisers, and actionable results for our clients.”
Streaming + retail media: While retail media is typically associated with on-platform advertising at grocers’ websites, the first-party data that powers it can also be valuable for advertising that takes place beyond a marketplace. Streaming, known as CTV in advertising circles, holds the promise of becoming a powerful new advertising force by combining the mass appeal of TV advertising with measurement and targeting capabilities of digital advertising. Retail media is helping to boost the latter with data accessed directly from purchases and loyalty programs. This partnership comes after Kroger Precision Marketing initially expanded into CTV in September 2022 with the addition of inventory to its programmatic marketplace.
Power in partnership: Retail media and CTV are both still in early days. This initiative shows how collaboration between companies can help to solve key problems that will promote growth of both spaces. In this case, Kroger Precision Marketing is bringing data and measurement capabilities that can help to enhance Disney’s nascent advertising offering. It's worth noting that when it comes to grocery and entertainment, these are two giants of their respective spaces. “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,” said Carol Simpson, Sr. Director of Shopper Marketing at PepsiCo, which was the first advertiser to work with the companies.
Hulu out front: Hulu was an early mover on CTV advertising, having introduced an ad-supported tier back when it launched in 2007. According to Statista, the platform maintained 22% of CTV market share in 2022. Now, Disney+ and other platforms such as Netflix are introducing their own ad plans. Hulu has the existing reach and inventory to prove out what works in a nascent area such as the introduction of retail media. At Disney, learnings can then apply to other platforms.
Dealboard has funding and M&A updates from ecommerce aggregators and forecasting software.
This week, the aggregator space is active with M&A, IKEA is ready to roll out newly-purchased warehouse management software and Authentic Brands Group acquired a boot icon. Plus, there’s new investment to report for YouTube influencer Emma Chamberlain’s coffee brand and retail forecasting.
Here’s a look at the latest deals:
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”