Ahold Delhaize USA brings retail media in-house

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Dive Brief:

Ahold Delhaize’s Peapod Digital Labs announced Wednesday that it plans to transition its retail media business to a fully in-house operation.
AD Retail Media plans to more than triple its current team over the next year, to more than 70 individuals, Bobby Watts, vice president and head of AD Retail Media, said in an interview. The business will soon launch a unified on-site and offsite advertising platform, a single dashboard for measuring campaign performance and roll out a new data collaboration tool for brands.
Ahold Delhaize looks to exert more control over its retail media business and leverage its proprietary data as digital retail media in the U.S. tracks toward $50 billion in ad sales by next year, according to eMarketer.

Dive Insight:

The in-house shift by Ahold Delhaize’s U.S. business is notable but unsurprising given the explosive recent growth of retail media. Like Albertsons, which launched its own retail media business last year, Ahold Delhaize wants to establish a more direct connection with CPGs while also expanding its advertising services.

In an interview, Watts characterized AD Retail Media, which is run through Peapod Digital Labs, as being “in the infancy stages” for most of the five years it’s been operating. It relied on media firm Quotient to develop and measure campaigns, helping launch features like a promotion amplification tool along the way. But Watts said Ahold Delhaize is now forging direct relationships with brands and hand-picking the technology it integrates into its retail media ecosystem.

That technology includes a new platform powered by CitrusAd and Epsilon that offers on-site and offsite campaigns. Ahold Delhaize is the first major retailer to utilize that platform, which launched in June. AD Retail Media will also utilize LiveRamp Safe Haven as a data collaboration solution while Quotient will continue to provide digital coupons. 

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