Retail

Amazon DSP expands options for grocery, CPG with omnichannel metrics

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October 31, 2022

Amazon's growing advertising wing has added a focus on grocery and consumer packaged brands, announcing a variety of expanded options for programmatic advertising in its brick and mortar Amazon Fresh stores during the annual Amazon unBoxed conference, according to a report in modernretail.co.

"Now you'll be able to understand how your ads impact purchases of your products at other stores and outlets," Paula Despins, vice president of ads measurement at Amazon, said in the report. "In addition, we will soon be offering you the capability to automate budget optimization for the total impact of your campaign, inclusive of both the online and offline sales."

Amazon DSP, the company's proprietary demand side platform, will incorporate omnichannel metrics for grocery and CPG advertising, and Amazon reports positive results of its preliminary testing such as a 40% increase in sales for select products from Kraft Heinz CPG brands.

"Amazon reported that revenue from its advertising business grew 25% year over year to $9.54 billion," said the report, and Amazon is attempting to close the gap with market leaders Walmart and Kroger. With fewer physical locations than leading grocery competitors, Amazon is considering an increase in its brick and mortar footprint.

"I think grocery will become a bigger part of Amazon's advertising business," Neil Saunders, managing director for retail at GlobalData, said in the report. "However, it still doesn't have anywhere near the reach and impact of the big players like Walmart and Kroger, which are No. 1 and No. 2 in the grocery space in terms of market share. Those players have the advantage of being able to reach more food shoppers and use their vast network of stores to offer a very comprehensive solution to brands."