Key Takeaways:

  • Kroger's retail media division announced Friday that it is partnering with TikTok to enable advertisers to directly reach the grocer's customers on the video social platformwith ads。
  • The partnership allows advertisers to use TikTok's self-service ad system to target Kroger shoppers based on purchase data.
  • Kroger Precision Marketing's collaboration with TikTok follows its March announcement of a partnership with Google to let marketers use product-level shopping insights to target audiences on YouTubewith ads.

Deep Dive:

According to Kroger Precision Marketing, its arrangement with TikTok reflects the growing role of influencer-made social media content in product discovery. The unit uses data from Kroger's loyalty members' in-store and online purchases to connect marketers with shoppers.

The supermarket chain said it has found that households it serves that engage with social media content spend twice as much as the average Kroger customer. Additionally, more than two-thirds of shoppers surveyed by Kroger's data science and analytics division said that within the past six months, social media prompted them to purchase at least one grocery, household, or personal care product.

Kroger said identifying Kroger shoppers on TikTok will enable advertisers to influence customers throughout the entire process, from product discovery to deciding whether to make a purchase. The retailer added that the new capabilities it offers with TikTok will help brands prevent shoppers from forgetting products they encounter on social media.

"Brands want to use retail audiences to amplify timely and relevant messages, but they also need the flexibility of self-service management within the platforms they already use," Christine Foster, group vice president of Kroger Precision Marketing, said in a statement. "By enabling our audiences within TikTok's ad platform, we are reducing complexity and friction in media buying."

Last week, Kroger Precision Marketinglaunched several self-service toolsto better help advertisers measure the effectiveness of their campaigns. The new features allow advertisers to set up ad plans on a single webpage and adjust daily spending based on website traffic over a two-week period.

Kroger announced its deal with TikTok just as Walmart disclosed on Tuesday that it hasagreed to acquireself-service connected TV advertising platformVibe.co. Walmart said the deal, expected to close in 2027, reflects its goal of making it easier for brands to use retail media data to reach consumers.