Disney and Kroger Collaborate on Streaming Retail Media Push

Disney Advertising and Kroger Precision Marketing (KPM), the retail media business of Kroger, have partnered to bring streaming to retail and CPG marketers. Disney Advertising has launched a limited beta test to create more ways for advertisers to reach high-value audiences through retail media insights across select inventory from Disney’s portfolio, beginning with Hulu.

The partnership will connect Disney’s inventory with KPM’s data science capabilities to help advertisers reach audiences through streaming content and to measure the sales impact on the back end across Kroger stores. The solution aims to drive value in three ways:

  • Powering audience-based advertising: The combination of Disney’s audience graph, a proprietary technology that helps advertisers identify distinct segments of the audience and to place commercials across Disney’s media, and 60 million annual households shopping at Kroger aims to create efficiency and improve KPIs through purchase-based data science;
  • Scaled streaming library: The solution connects advertisers to Disney’s streaming portfolio, including news, sports and entertainment, to help marketers reach audiences adjacent to the most premium content in the streaming space; and
  • Measurable in-store and online sales impact: KPM works to close the loop between media exposure and sales, allowing brands to measure the business impact of advertising by providing advertisers with retail sales, household penetration and segment-level insights.

“While the industry is focused on identifying alternative currencies, Disney is doubling down on driving real-world results for brand clients each and every day,” said Lisa Valentino, EVP, Client Solutions and Addressable Enablement at Disney Advertising in a statement. “The unrivaled reach of Disney, amplified through retail media insights from one of America’s leading grocers, results in a better experience for both viewers and advertisers, and actionable results for our clients.”

A select group of CPG brands will participate in the initial beta program, with the solution slated to launch to the general market in the second half of 2023. PepsiCo was the first advertiser to work with KPM and Disney during alpha testing.


“The collaboration with Kroger Precision Marketing and Disney provides an exciting opportunity for brands to meet consumers where they are by leveraging KPM’s first party consumer data to reach the right shopper at the right time,” said Carol Simpson, Sr. Director of Shopper Marketing at PepsiCo in a statement. “As consumers spend more time with streaming TV, it is increasingly important for industry providers and advertisers to work together to bring innovative solutions like this to the marketplace.”

Retail media networks have been growing quickly over the past few years, and ensuring the advertising dollars spent are resulting in measurable results is a key consideration for brands and retailers. A study by Insider Intelligence found that the two most important retail media attributes to advertisers are traffic quality (with 45.5% of brands saying it is “extremely important”) and traffic scale (44.8%), making Kroger’s ability to get brands onto a major streaming service, then measure the resulting KPIs, vital to its push.

“Many retailers are overestimating their ability to get the attention of enough brands to buy on their network,” said Andrew Lipsman, Principal Analyst for Retail and Ecommerce at Insider Intelligence in an interview with Retail TouchPoints. “Across most categories, once you get past the category leader, the scale isn’t there. If [a retailer] has enough online traffic, they can monetize search traffic through some ads and get some nice high-margin revenue, but it’s probably not going to be that much incremental revenue at the end of the day, so it’s not going to be a game-changer for their business.”

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