Gen-X, Millennial Female Opps: Kroger continues increasing ad spend (Score 53)

Kroger increased YOY ad spend significantly from 2019 to 2020, and has continued increasing spend so far in 2021. Per its Q4 2020 earnings reports, the company is also investing more in retail media, which includes coupons, loyalty programs and sampling. Execs believe this provides an excellent ROI. We told you about the company's new marketing strategy that is focusing on educational content, customer support and uplifting messaging last fall. Sellers should contact this company while it is spending at such a high rate. 

According to iSpot, Kroger spent around $4.1m on national TV ads YTD, a 41% increase from $2.4m spent during the same time period of 2020. Full-year spend jumped 78% from $4.9m in 2019 to $8.7m in 2020. It placed ads this year during programming such as "Dr. Phil," "Wheel of Fortune," "Judge Judy," "The OT" and "Daily Blast Live." 

Per Pathmatics, Kroger earned 2.6b impressions through Facebook ads (63%), Instagram ads (14%), desktop display ads (12%), desktop video ads (10%), Twitter ads (2%) and mobile display ads (1%). It placed the majority (93%) of these ads site direct onto sites such as facebook.com, instagram.com, youtube.com, ajc.com and twitter.com. It placed the remainder (7%) through a variety of indirect channels onto sites such as yahoo.com, realtor.com, listenonrepeat.com, reddit.com and foxnews.com. It spent around $18.9m on digital display ads YTD, a 42% increase from $11m spent during the same time period of 2020. Full-year spend skyrocketed from $22.8m in 2019 to $66.5m in 2020. 

Sellers-- Kroger mainly targets Gen-X and millennial women (moms) through digital display and national TV ads. However, it does seem to target a slightly broader audience through its digital ads that includes Gen-Zers. It also invests in OOH, print, radio and local broadcast TV ads, per Kantar. Sellers should reach out offering relevant ad space to procure some of these extra ad dollars. 

Agency & martech readers-- Kroger picked-up integrated media AOR Dentsu Aegis Network last summer, and as you know, reviews often follow one another. It also promotes its CMO last summer. We have not seen any more changes to the roster since then, so keep reaching out to be top-of-mind. Kroger also works with creative AOR DDB New York and digital agency Publicis.Sapient.