Home TV Kroger Tosses CTV Into Its Media Planning Cart With Help From Hulu

Kroger Tosses CTV Into Its Media Planning Cart With Help From Hulu

SHARE:

Kroger is spending more on connected TV and it’s just a “natural evolution,” says Kendra Clune, associate media director at the grocery retailer.

“Ratings are dwindling on traditional television, and where are those viewers going?” she said. “We saw that our buys were skewing older and older, and we knew we needed to capture more of that audience we were missing.”

Although Kroger was ostensibly hitting its target audience of adults between the ages of 25 and 54, on closer inspection it became clear that the 25- to 34-year-old set was largely missing on traditional TV.

Kroger first started flirting with over-the-top in 2011/2012 and partnered with Hulu to extend its TV reach on digital. But Kroger paused its Hulu spend for a couple of years because getting to scale was a challenge.

Now, the scale is finally there – Hulu recently hit 28 million subscribers – and Kroger has restarted the relationship, Clune said. But rather than using CTV as an extension vehicle for television, Kroger is tapping it as a source of incremental reach.

Kroger’s TV buying approach is a hybrid affair these days. Its planners use traditional television to get in front of older audiences, and OTT to reach the younger end of its target.

When advertisers run ads on both linear TV and OTT, 53% of viewers exposed to that campaign on Hulu never actually see its counterpart on regular TV, according to internal research from Hulu.

Marisa Cranswick, senior manager of media planning at Kroger, can personally attest to that phenomenon. Cranswick is a self-described “cord never,” and “I never see our ads on traditional TV,” she said.

But Kroger’s goal isn’t to replace linear TV buys with OTT just for the sake of doing so, far from it. It’s about efficiency, Cranswick said. Now that Kroger knows where to reach different segments of its audience, it can use that information to rethink its overall planning, including its daypart mix and approach to forecasting.

OTT also helps Kroger experiment with national TV buying.

Most of the money Kroger spends on television is in local markets, because its store footprint is regional. But Kroger also has a line of organic products under the banner “Simple Truth” which ship nationally via Vitacost, the ecommerce company Kroger acquired in 2014.

Kroger continues to plan local media buys across specific DMAs, and to use Hulu as a brand play for national audiences. That ends up being more cost effective and actually helps justify continued spend on TV.

“We’re looking to grow and maintain our channel mix with CTV while still emphasizing the importance of TV to reach audiences,” Cranswick said. “With both CTV and TV, we can create a multiplier effect on the ROI of other channels.”

In a recent national campaign for its “Simple Truth” brands, Kroger saw 82% incremental reach on Hulu for its target demo of consumers between 25 and 54, and the majority (95%) were classified as light linear viewers, aka, those who spend little or no time consuming linear TV.

“A result like that is great, but now, how can we use it to help optimize our broadcast buys and plans to reach a younger audience,” Clune said. “It got us really thinking more about how we’re reaching older audiences and what we can do to be more efficient.”

Must Read

Upfronts Day Two: Dancing And Data

TelevisaUnivision and Disney took over Day Two of upfronts week in New York City on Tuesday, and the throughline was data quality.

Warner Bros. Discovery’s Upfront Was All About Performance

Warner Bros. Discovery used its upfront stage to announce two new ad measurement efforts, including that it’s joining a CAPI-focused initiative led by OpenAP.

Upfronts Day One: Publishers Jostle For Position As Performance Drivers

AdExchanger Senior Editor Alyssa Boyle and Associate Editor Victoria McNally traversed the island of Manhattan on Monday to scope out upfront presentations by NBCUniversal, Fox and Amazon.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Viant Sees A Growth Wave Coming, But First Marketers Must Really Ditch Walled Garden Ad Tech

Viant’s modest growth story took a backseat to a far louder claim: that fed-up advertisers are finally ready to ditch the rigged economics of Big Tech’s walled gardens.

Amazon’s Interactive CTV Ad Suite Now Includes Creative Optimization

Amazon Ads expects this year’s television upfronts to be an outcomes-focused affair. That may explain why the company preempted its Monday evening presentation by announcing the launch of a new ad product called Dynamic TV Creative.

Is Agentic Commerce An Oasis Or Mirage?

For companies like Shopify, Criteo and Instacart – and even for giants like Amazon and Walmart – figuring out if the agentic oasis is real or a mirage is their priority No. 1.