Hy-Vee is upping the ante in retail media with the launch of Hy-Vee RedMedia, the Midwestern retailer’s own retail media network.
Hy-Vee RedMedia made its official debut on Wednesday at Groceryshop 2023 in Las Vegas. Describing the new business arm as a “disruptor in the retail media landscape,” West Des Moines, Iowa-based Hy-Vee said Hy-Vee RedMedia will connect consumer packaged goods brands directly with the company’s “robust and diverse” customer base across multiple platforms as well as help build brand affinity via “meaningful and personalized” interactions.
“Retail media is outpacing traditional marketing and will be a game-changer in consumer marketing,” Jason Farver, president of Hy-Vee RedMedia, said in a statement.
With Hy-Vee RedMedia, Hy-Vee said it will enable companies to develop effective omnichannel marketing strategies—through digital platforms, in-store advertising and brand-safe sites—by reaching specific consumers across its brick-and-mortar and digital channels. CPG clients can then sharpen their messaging based on purchasing behavior and brand preferences, crafting a personalized shopping experience for customers.
Hy-Vee noted that its broad portfolio of businesses can give brands access to insights beyond basic demographics and wide-ranging buying behaviors, including data that better shows lifestyle preferences than most other retailers plus a deep understanding of the shoppers they are trying to reach. In turn, brands can then provide content that’s valuable to these customers.
“Leveraging insights allows companies to be smarter and more strategic with their marketing dollars, while also improving the customer experience by reaching the right customer at the right time with the right product offering,” Farver commented.
Overall, Hy-Vee operates more than 285 retail stores in eight Midwestern states and generates annual sales of over $13 billion. The company noted that it reaches millions of customers and patients each year through a diverse portfolio of services, which span food and grocery, pharmacy, dietetics, specialty health care, banking, manufacturing, construction, and wine and spirits, and more. The retailer also fields a roster digital-driven ventures such as Hy-Vee Aisles Online, WholeLotta.com, Vivid Clear Rx and RedBox Rx.
According to eMarketer, digital retail media ad spending in the United States stands to climb to $61.5 billion by 2024 from just $13.23 billion in 2019. That includes an estimated 16.4% gain in 2022 and projected growth of 18.1% this year and 19.1% next year.