Canada’s leading food retailer, Loblaw, has acquired the technology and related team from Eyereturn Marketing Inc., a subsidiary of Torstar Corporation to support the growth of Loblaw Media.
Enhancing targeted campaigns and promotions
The retailer launched Loblaw Media last year with the aim of capturing a greater share of brands’ spending on digital marketing. This acquisition will enable it to better connect brands and consumers through targeted ad campaigns and promotions. It will be integrated into Loblaw’s proprietary audience targeting and measurement platform, reducing its reliance on third-party media technology.
Source: IGD Research
New revenue stream
Over recent years, several retailers have launched or further developed their digital media operations. These include Amazon, Walmart and Kroger in North America. Retailers view this is a significant opportunity to generate a new revenue and profit stream, with a view to offsetting some of the costs associated with digital commerce.
Optimising its digital platforms
Loblaw is well positioned in this area due to its leading ecommerce operations, which included food, beauty and clothing platforms and its digital-first loyalty programme, PC Optimum. These provide Loblaw Media with specific, anonymised target audiences based on in-store and online purchase histories.
Understanding campaign effectiveness
Food retailers, especially those with loyalty programmes, believe they are well positioned to capture a greater share of CPG brands’ digital marketing spend. This is due to their ability to demonstrate a true ROI on ads served to consumers, effectively providing closed-loop measurement by tracking the path to purchase, from online to offline sales. Understanding the effectiveness of digital campaigns is a major focus for branded manufacturers as they shift more of their spend into the digital space. This will have been accelerated by the pandemic, as more consumers are shopping online, and expected to continue doing so.
Retail Analysis weekly newsletter