Hy-Vee is setting a new standard in in-store advertising through its recent partnership with Grocery TV, an innovative retail media platform. Beginning February 2025, the collaboration will empower Hy-Vee to maximize the reach of brands at 400 retail locations by leveraging over 10,000 screens strategically placed in high-traffic areas such as entrances, checkouts, service departments, aisles, and end caps.
The integration with Grocery TV will be facilitated by The Trade Desk, a global advertising technology company. This partnership aims to create a centralized hub for managing both off-site and in-store advertising campaigns, simplifying the complex ecosystem of retail media. Hy-Vee’s retail media network, RedMedia, will specifically benefit from the technology’s capabilities for audience targeting and performance measurement.
Forging New Paths for Brand Engagement
Kathryn Mazza, Senior Vice President of RedMedia, emphasized the importance of this technology in transforming Hy-Vee’s in-store experience. With Grocery TV’s Content Management System, brand advertisements won’t just be passive displays. Instead, they will be dynamic, allowing Hy-Vee to manage its own messaging while also offering brands an effective way to reach their target demographics directly at the point of sale.
The partnership aims to do more than just enhance advertising. Grocery TV’s media partnerships team will work to drive incremental revenue for brands by incorporating Hy-Vee into a vast network that spans over 5,000 grocery stores. This broadened exposure opens an avenue for partner brands to connect with millions of potential customers, making every shopper touchpoint an opportunity for engagement.
This shift towards a more integrated advertising model is a testament to how retail media networks are evolving. Don Oelke, co-founder and COO of Grocery TV, pointed out that the collaboration with Hy-Vee represents not just a step forward for the grocery chain but for the entire in-store media landscape.
Detailed Audience Targeting and Measurement
A key feature of this collaboration is the focus on audience targeting. Brands will have access to advanced targeting capabilities, allowing them to connect with their customer base more effectively. With precise data insights, these brands can tailor their messages based on shopper behavior, preferences, and demographics.
Moreover, effective measurement tools will enable brands to evaluate the success of their advertising campaigns. Using this data, they can refine their strategies and ensure a higher return on investment. A significant distinction of this approach is the ability to analyze performance both on and offline, offering brands a comprehensive view of their marketing effectiveness.
Industry Impact and Future Considerations
The importance of this development extends beyond Hy-Vee and Grocery TV. It aligns with a broader trend in the retail industry, where in-store media networks are being recognized for their potential to generate significant revenue and improve customer experiences. Currently, over 100 retailers across the U.S. are using Grocery TV’s solutions to maximize their digital marketing efforts, highlighting the growing acceptance of technology-driven marketing approaches in brick-and-mortar environments.
For a company like Hy-Vee, which services over 570 business units and boasts sales exceeding $13 billion annually, the implications of enriching customer engagement through advanced media solutions can be profound. As shopping habits continue to change, particularly with the rise of e-commerce, establishing meaningful in-store connections becomes increasingly essential.
This strategic partnership positions Hy-Vee not only as a grocery leader but also as a pioneer in retail media execution. With its significant workforce of over 75,000 employees and a solid footing in the Midwest grocery landscape, Hy-Vee is set to show the industry just how impactful in-store digital advertising can be.
With digital advertising quickly becoming a staple of modern retail strategy, Hy-Vee’s proactive approach places it ahead of the curve. This integration of technology into retail practices is a clear indication of the growing importance of data-driven marketing solutions in creating effective consumer engagement strategies.
As Hy-Vee progresses with this partnership, industry players should take note. Adapting to new marketing modalities and investing in technology will be critical for retailers aiming to thrive in an increasingly competitive market.
