Kroger ad business surges to biggest profit jump since 2021

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• Kroger Precision Marketing posts notable profit rise
• How Kroger is turning shopping behavior into ad revenue
• New ad formats and platform partnerships
• Digital screens and in-store video: a growing channel
  • Why in-store video matters
• Industry voices: retail media as an ecosystem play
• Leadership experience shaping the strategy
• What brands and advertisers are getting
• Measurement, inventory and the next growth levers

Kroger’s advertising arm is taking center stage as the retailer reports accelerating profit and audience gains for its retail-media business. Investors heard the news first from CEO Greg Foran, and the numbers point to a broader shift: grocery chains are turning customer data and in-store touchpoints into meaningful ad revenue and growth.

Kroger Precision Marketing posts notable profit rise

Kroger disclosed that Kroger Precision Marketing saw profit increase by 24% in the second quarter. Company executives called it the division’s strongest profit performance since 2021.
Media monetization improved by 88 basis points year over year, the company said. E-commerce sales rose about 20%, marking a second straight quarter of profitable online growth.
Foran mentioned retail media and e-commerce in the opening remarks of Kroger’s earnings call, signaling how central these channels are to the retailer’s strategy.

How Kroger is turning shopping behavior into ad revenue

Kroger credits higher on-site traffic and new ad formats for the boost. The company is packaging first-party shopper data into advertising solutions that sit both on and off its digital properties.
Key factors behind the growth include:

• Expanded advertising inventory from tighter media-merchandising collaboration.
• Introduction of targeted shopping assistant ads within Kroger’s apps and websites.
• Optimization work that improved ad visibility and conversion rates for brand partners.

New ad formats and platform partnerships

Kroger has moved beyond simple product listings. Recent launches and deals show a wider media mix:

• AI shopping assistant ads embedded in Kroger’s mobile app and websites. The assistant helps customers plan meals and build carts.
• A March integration that lets advertisers use Kroger data in Google’s Display & Video 360 to reach YouTube and YouTube TV audiences.
• A partnership with TikTok enabling brands to target Kroger shoppers through TikTok’s ad platform.
• Programmatic and social placements that use Kroger’s transactional signals to improve targeting.

Kroger’s media team says these moves expand how brands can reach shoppers across screens and platforms.

Digital screens and in-store video: a growing channel

Kroger is also investing in physical digital advertising. The company rolled out in-store video screens last year in wine and spirits sections at nearly 600 locations. This year, it has been deploying more digital screens across store fixtures and end caps through a collaboration with Barrows Connected Store.
The retailer declined to release a full national screen count, but it confirms the network is growing. Industry observers expect these displays to become a steady revenue stream.

Why in-store video matters

• Video pairs visuals and transactional data to influence purchase at the shelf.
• Advertisers get a more direct path from exposure to sale when messages run inside stores.
• Retailers capture higher CPMs for premium, contextual inventory.

Industry voices: retail media as an ecosystem play

Executives at retail media and tech firms say Kroger is treating ads as part of a broader commerce ecosystem. Drew Cashmore, chief strategy officer at retail media software provider Vantage, notes Kroger’s approach goes beyond placing ads on a single platform. He says the company seeks to connect on-site, social, CTV and programmatic channels back to transaction data to improve both experience and measurement.
Sean Crawford, managing director for North America at SMG, frames Kroger’s expansion as evidence that retailers must show unique value to brands. Retailers are packaging first-party signals into off-site offerings that advertisers cannot easily replicate elsewhere.

Leadership experience shaping the strategy

Greg Foran previously ran Walmart U.S. for six years. Several industry leaders point to that experience as influential in Kroger’s strategy. Those who worked with him on retail media initiatives say he emphasizes cross-functional coordination among merchandising, media, operations and marketing. That alignment, they argue, helps unlock ad inventory and drive growth.

What brands and advertisers are getting

Kroger’s ad offerings increasingly aim to give marketers:

1. Access to verified shopper behaviors and purchase signals.
2. Cross-channel campaign options that include on-site, programmatic and social placements.
3. New in-store canvases like video screens for contextual creative.
4. Tools that measure conversion from ad exposure to purchase more directly.

Kroger’s push highlights how grocers can monetize shopper interactions while offering brands a differentiated way to reach consumers.

Measurement, inventory and the next growth levers

Executives and analysts say the next phase will focus on scaling inventory and improving measurement. Expected priorities include:

• Wider rollout of digital screens across store formats.
• Deeper integrations with platforms like Google and TikTok for cross-channel attribution.
• More AI-driven ad products inside shopping assistants and personalized experiences.

Retailers that combine richer ad placements with reliable conversion data stand to win more brand budgets.