Following the launch of its digital marketing programme, Albertsons Performance Media (APM), one year ago, we look at how Albertsons is helping its suppliers to drive strong returns on their digital marketing spend.
The retailer partnered last year with Quotient to create a digital media platform, Albertsons Performance Media. This enables branded suppliers to connect with Albertsons’ shoppers on major campaigns to drive sales growth utilising social media, its own digital properties and third-party publishers. Commenting on its progress with the programme over the last 12 months, Karen Sales, VP of National and Shopper Marketing at Albertsons stated,
“APM has executed 300 campaigns on behalf of 150 CPG companies. We’ve been able to target the right shoppers at the right time and in the right digital places. It has exceeded our expectations.”
Source: IGD Research
Supplier case studies
Through the programme, suppliers have seen returns on their ad spend as high as two times more than industry benchmarks set by Nielsen. Among the companies that have seen strong results is PepsiCo. To support the launch of ‘The Pepsi Generations Summer Music Campaign’ last year, APM connected locally-relevant Pepsi music assets with the retailer’s shoppers. During a five-week promotion, sales outperformed the rest of the grocery channel. PepsiCo is currently working with Albertsons and Quotient on additional campaigns.
Following Quotient’s acquisition of Ahalogy last year, an influencer marketing specialist, it partnered with General Mills to support the launch of new products for its Oui brand. The campaign helped the supplier to boost engagement and drive new usage occasions. Key metrics, including brand impressions and clickthrough rates, exceeded expectations.
Ecommerce opportunities for brands
Albertsons is also working with Quotient to improve its ecommerce experience. Within its websites, the retailer has implemented sponsored search and product placements, enabling brands to have their products show up high on the digital shelf when people are searching.
Digital marketing: a new opportunity for retailers
Optimising the digital marketing opportunity to drive new revenue is a growing priority for many grocery retailers. As ecommerce becomes a larger part of their businesses, they are seeking to capitalise on online traffic. Through their loyalty programs, they can also effectively measure the impact of ads directly on purchasing behaviour – this is viewed as providing them with a competitive advantage over traditional media agencies and a powerful selling message to CPG brands.
Advanced technologies accessible to all
Earlier this month, Loblaw in Canada launched a trial digital advertising service that rewards customers with loyalty points for seeing relevant and tailored ads on third-party websites. Walmart, Kroger and Amazon have also set up their own digital marketing operations, while in the US, several other retailers have partnered with Quotient. This also brings to life how technology is being democratised, with advanced tools and capabilities becoming within the reach of retailers that may not have the resources to develop in-house solutions.
Retail Analysis weekly newsletter