Omnicom Announces Collaboration with Kroger Precision Marketing to Reduce Media Waste, Enhance Consumer Experiences
CANNES, France, June 23, 2022 /PRNewswire/ -- Omnicom Media Group, the media services division of Omnicom Group Inc. (NYSE: OMC) today announced a strategic collaboration with Kroger Precision Marketing (KPM) that will deliver early-adopter opportunities to Omnicom clients. Kroger Precision Marketing is the retail media network powered by 84.51°.
The agreement will launch with Kroger Precision Marketing feeding its SKU-level store inventory data to Omni, Omnicom's open operating system that orchestrates better outcomes for clients across the entire consumer purchasing journey. This daily data will add a critical capability to Omnicom's Supply Chain IQ Score which helps brands to quickly and effectively re-direct media spend to deliver on business KPIs in a supply-strained environment.
The agreement marks the first formal collaboration with this dataset between Kroger Precision Marketing and an agency holding company.
As reported in a recent White House economic report, the supply chain disruption that erupted during the Covid crisis is not fading away even as the pandemic subsides. With inventory challenges continuing, marketers need the ability to quickly adjust their media spend to product availability without negatively impacting performance. At the same time, retailers have a vested interest in supporting efforts to better align advertising to product availability, so their customers aren't being driven to products that aren't available.
Launched in May, the Supply Chain IQ Score leverages data from top U.S. retailers and distributors to give media planners day-to-day visibility into SKU inventory data at the physical store and digital shelf levels. This visibility enables media investment to be quickly shifted away from low-inventory products, and toward another SKU in the brand portfolio that has high repeat purchase behavior, healthy inventory, and strong market basket correlation to the low-inventory item.
Planners can now optimize in-market retail media, utilizing shopper behavior data to shift spend based on product availability; and still have the flexibility to optimize media, while maintaining national consumer demand.
"The combination of Kroger's reach - 50% of US households– and the greater depth of visibility that its unique inventory data enables adds scale and utility to the Supply Chain IQ Score," says Omnicom Media Group Chief Activation Officer Megan Pagliuca, enhancing account teams' ability to reduce media waste, meet brand performance goals and assure positive consumer experiences in a supply-strained environment."
"Kroger Precision Marketing is committed to bringing more transparency to the media supply chain to help brands be more effective in their advertising," says KPM Senior Vice President Cara Pratt. "Our collaboration with Omnicom aligns with our mission to make brand advertising more accountable."
About Omnicom Media Group
Omnicom Media Group (OMG) is the media services division of Omnicom Group Inc. (NYSE: OMC), a leading global marketing and corporate communications company, providing services to more than 5,000 clients in more than 70 countries. Omnicom Media Group includes full- service media agencies Hearts & Science, OMD and PHD; performance marketing agency Resolution; Optimum Sports Media and Marketing; and the Annalect data and analytics division that developed and manages the Omni open operating system that orchestrates better outcomes for clients across the entire consumer marketing journey .
About Kroger Precision Marketing
Kroger Precision Marketing (KPM) is a leading retail media network. Powered by 84.51° data science, and Kroger's popular loyalty card program, we connect customers to brands through engaging moments that inspire purchasing online or in-store. Kroger Precision Marketing closes the loop between media exposure and store sales to make brand advertising more accountable. Learn more at KrogerPrecisionMarketing.com
SOURCE Omnicom Media Group