IGA and digital circular firm Ideal by Design House on Tuesday announced plans to create the first retail media network designed for independent grocers.
The marketing agreement between the Independent Grocers Alliance (IGA) and Design House will create a CPG-funded retail media network available to all independent retailers—not just IGA stores—at no cost, the companies said.
“When brands go to invest their media dollars, there is no reason for independent retailers to be left out,” IGA President and CEO John Ross said in a statement. “Already IGA and Ideal have one of the largest media properties in the United States, and we have proven that the brand and shopper marketing teams at big brands want to invest in our stores. The Ideal network takes it to a whole new level, combining the negotiating power of thousands more independents to challenge anything national grocery chains offer.”
Retailers across the country in recent years have launched retail media networks, creating a new revenue stream by bringing in ad money from consumer packaged goods (CPG) manufacturers.
Walmart on Tuesday reported that its global ad sales business grew more than 20% during the fourth quarter, driven by 41% growth in the U.S.-based Walmart Connect ad platform. For the full year, global ad sales generated $2.7 billion, Walmart said.
The Ideal-IGA platform will sell on-platform and off-platform ad placements, providing co-branded advertising for CPGs and retailers. CPG manufacturers will receive metrics and reports on in-store traffic as well as return on ad spend data, basket size, category growth and more.
IGA’s network includes more than 6,000 supermarkets worldwide, as well as dozens of distribution centers and manufacturers, vendors and suppliers. IGA has stores in 43 U.S. states and more than 30 countries.