Driving Sales for the 2021 Holiday Season - September 23, 2021 - PromoteIQ
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Driving Sales for the 2021
Holiday Season
PRESENTED BY
Kelsey Crookes, Onsite Product Strategy, Kroger Precision Marketing 84.51˚
Jeff Mejia, Client Account Manager, PromoteIQ
Michelle Nwokedi, Client Account Manager, PromoteIQ
September 23, 2021
Today's Agenda
1. Kroger E-Commerce Growth
2. Holiday Season Trends
3. Campaign Timing & Strategy
4. Best Practices
5. Q&A
© 84.51˚ | 2021 | CONFIDENTIAL | 2
This Season’s Kroger.com Shopper
A Stress-Free Experience Key Motivators
The #1 reason Kroger eCommerce shoppers say they anticipate shopping
online during the holidays this year is to avoid going in-store during high-
traffic times.
Inspired Discovery
Shoppers are more eager than ever this year to seek inspiration for
holiday ideas, create unique menus & purchase gifts.
BOPIS and Ship Convenience
Kroger Pickup & Delivery sales grew 124% YoY during the holidays
2020 versus 2019 (13 weeks, 10/4 – 1/2). December is the highest traffic
month of the year and in 2020 still beat peak COVID traffic. Average
monthly searches from Oct-Dec 2020 were 18% higher than July-Sept 2020.
Continued Digital Transformation
Grocery shoppers will continue to embrace e-commerce. Kroger recently
announced Q2 results and digital sales are up +114% on a two year stack.
© 84.51˚ | 2021 | CONFIDENTIAL | 3
2020 At A Glance
© 84.51˚ | 2021 | CONFIDENTIAL | 42020 Holiday Traffic Trends
Opportunities on Kroger.com and mobile app started to rise in October, 2 weeks
prior to Halloween -- and steadily increased through January.
Compared to Average Weekly Opportunities in September 2020
32% overall increase in ad
32% higher for the 3 weeks 42% higher 1 week into
opportunities Halloween
leading up to Christmas January
until Thanksgiving
This has been a consistent pattern over the past 3 years, even with the unique challenges of 2020. Start
your campaigns early to take advantage of the momentum.The Q4 Kroger Shopper
Trends & Predictions
© 84.51˚ | 2021 | CONFIDENTIAL | 6Holiday Themes To Help Drive Your Strategy
Traditional Ingredients Gatherings and Multicultural
Gifting Celebrations
"Turkey" is the #3 search term Shoppers are ready to gather with With ~20% of Americans celebrating a
leading up to Thanksgiving friends and family again! multicultural moment during the Q4
Veggie side dishes, baking ingredients 76% of shoppers are planning to give holidays and a predicted 22% increase
will remain popular. more gifts when pandemic restrictions in interest for “authentic cuisine
Don’t forget about breakfast/ brunch lift. recipes”2 for the holidays, shoppers
too! Gift Card searches are in the seek representation of all their
top 20 search terms in the 3 traditions.
weeks leading up to Christmas.
7
Sources: (1) 84.51 Customer Strategy & Insights, (2) MeredithCold, Flu & COVID Themes To Help Drive Your Strategy
14% YOY growth in Kroger Health,
OTC & Wellness.
Resurgence of Common Illness 80% Kroger shoppers now shop
across these categories.
The 2020-21 Flu Season saw record low cases.1
With relaxed socialization restrictions & lower
population immunity, experts predict a rebound in
common illness in 2021-22. 2,3,4
Food as Medicine
Top food/drink in the basket with Cold & Flu
sub-department during Flu season include
Tea, Honey, Soup, OJ, Isotonic Drinks,
Crackers, Mints, & Gum.
8
Sources: (1) New York Times,, (2) Boston Globe, (3) Wall Street Journal (4) NBCNews,Post Winter Holiday Themes To Help Drive Your Strategy
Back to the Grind
New Year's Resolutions Craving Comfort
Following the holiday madness, back to
From deal-hunting, eating right, and As January ushers in more blustery days, school II and return to work has families
exercising, a portion of consumers are the cold weather will likely drive a natural and workers shuffling to get into a groove,
looking to improve their lives and drop desire for warming, indulgent foods and fueling the need for consistency and
those holiday pounds. creature comforts. routine.
Orange Juice search term pops into Ingredients for America’s Back-to-Routine type products saw
top 15 in January. Salad ingredients favorite foods saw an an average sales increase of 10% in
and healthy sides/snacks are also average of 12% increase in sales the month of Jan ‘21..
prevalent. in the month of Jan ‘19.
9Timing Your Campaigns
© 84.51˚ | 2021 | CONFIDENTIAL | 10Q4 Holidays and Looking Ahead to Q1
Diwali Thanksgiving Hannukah Christmas New Year's Eve & Day Valentine's Day
Nov 2 – Nov 6 Nov 25 Nov 28 – Dec 6 Dec 25 Dec 31 – Jan 1 Feb 14
Friendsgiving Black Friday Cyber Monday Kwanzaa Superbowl Weekend Mardi Gras
Nov 18 – Dec 5 Nov 26 Nov 29 Dec 26 – Jan 1 Feb 13 Mar 1
Don’t forget about the micro moments between the larger holidays!
11When Should You Start Your Campaigns? How Long?
When should you start your campaign to capture the increase in the traffic
of shoppers deciding on their holiday menu and early shoppers looking to get
ahead start?
Short campaigns during the peak of season may capture the majority of
sales, but when taking a holistic view, what portion of sales may be left on
the table?
How long should your campaign run after the holiday to capture shoppers
restocking for the next gathering, looking to update their menu, and reaching
their new year’s resolutions?
When is the peak for traffic & sales during the holiday period?Determining Holiday Campaign Strategy
KPM PromoteIQ Holiday Performance
Oct '20 - Jan '21
% Traffic % SALES Avg. ROAS
30.00% 7.0X
ROAS 6.3X
The Findings
ROAS 6.1X
ROAS 5.9X 6.0X
25.00% ROAS 5.6X
▪ Sales peak the week leading into
Thanksgiving and the last week of January
5.0X
20.00%
▪ Campaigns that go dark for January miss out on
4.0X ~25% of sales for the season
15.00%
▪ January had the highest overall avg monthly ROAS
3.0X
at ~6.3X
10.00%
2.0X ▪ ROAS dips slightly following Thanksgiving but
rebounds quickly as shoppers restock for
Christmas and remains strong through January
5.00%
1.0X
0.00% 0.0X
Nov-20
Dec-20
Jan-21
Oct-20What does this mean for your campaigns? Expand campaign flight dates to capture the full holiday period to: • Increase overall sales opportunity by more than 2X by capitalizing on untapped traffic during October & January. • Win share when competitors go dark. • Stay competitive during traffic & sales peak. • Engage shoppers and capture sales along full cycle of the shopper journey.
Best Practices for
Holiday 2021 and Early 2022
© 84.51˚ | 2021 | CONFIDENTIAL | 15Start Early
Position your campaigns to capitalize on the traffic spike that begins in mid-
October and continues through January.
$
Traffic begins to climb 2 weeks Based on consistent patterns Prep Ahead for 2022
prior to Halloween from 2018-2020, we expect to
see similar traffic increases Campaigns that go dark
Holiday searches begin to through to EOY and beyond. for January miss out
see momentum in August and on ~25% of sales for the
first spike in October. 32% overall increase season.
in traffic leading into
Christmas and 34% increase into
New Year's.Take A Diversified Approach
Meet shoppers where they are to capture sales at all stages and times along their journey.
Placement Participation
Placement Participation
• Search & Browse
• Search & Browse
• Shop & Discover
• Basket Builder
• Savings (if savings message in
• Savings (if featured product is
creative)
on discount)
Product Selection
Targeting
• Search and Browse: 6-20 Include both relevant and
Priority SKUs, Core items. complementary sub-commodities.
• Basket Builder: Include full
portfolio Don’t forget about Advanced
• Savings: Include full portfolio Targeting as well to focus your
spend on a subset of households!
PLA TOA
© 84.51˚ | 2021 | CONFIDENTIALBoost Your Bid Strategy
Avg. ROAS for Holiday season ~6x, meaning you can be more aggressive with your budget & bids while maintaining high overall ROAS.
Employ a higher, competitive TIPS
Start Core Products closer to CPM bid to increase visibility
the floor and increase while during the shorter time period. ▪ Pacing: ASAP pacing can be used
monitoring performance. to take advantage of all traffic
When running for a longer, patterns during the key time.
Innovation or Priority SKUs "always on" time period, you
should bid higher by 10-20%. can start with a near floor CPM
▪ Look Ahead: Start your “always on”
and then increase as needed.
strategy for 2022 to enable
consistent visibility and maintain
share with current buyers
PLA TOAMatch Your Message
Your Creative is essential to your TOA campaign success.
ALWAYS ON
Utilize a broad message that can be carried
through different seasons showcasing
focus products. This will allow you to have
one campaign that you can keep live for
up to 6 months or pulse in when you don’t
have other key time initiatives.
KEY TIME
The creative should help the shopper make
a connection between the featured products
and complementary sub-commodities. Can
also be themed or reference the time period
itself if applicable (i.e. holiday).Match Your Message
Your Creative is essential to your TOA campaign success.
SAVINGS ITEMS
Call out a specific promotion if
supporting Mega, Yellow Tag, Hot Digital
Offer, or Free Friday Download (need
Category Manager confirmation).
Use a broad Savings Message if supporting
all other digital coupons or general sales.
NEW PRODUCTS
Call out the new item or an element
of “new” language. Creative should
help make connection to
complementary products or how the new
product can fit and solve the shopper
needs.Win the Digital Aisle with a Full Onsite Strategy
Engage shoppers across their entire shopping routine and inspire purchase decisions by participating in
multiple placements.
PRODUCT LISTING ADS TARGETED ONSITE ADS 15x
Higher Likelihood of Conversion
SHOP & DISCOVER
TARGETED ONSITE AD
SEARCH & BROWSE
TARGETED ONSITE AD
SAVINGS TARGETED
ONSITE AD 34%+
Increase in CTR
Participating with a combination of multiple PLA and TOA placements will extend your reach and allow you to drive
higher performance for your onsite program.
© 84.51˚ | 2021 | CONFIDENTIAL | 21Stay Ready to Be Ready
Be prepared with an "Always On" Strategy. January is one of the busiest months of the year!
Don't Go Dark in 2022:
Reach Newly Competitive
Motivated Shoppers Advantage ▪ January 2021 had the highest overall
avg. monthly ROAS at ~6.3X
▪ Schedule to Launch – Queue
up your campaigns early to
launch on January 1st or
New Year’s resolutions start Stay live and get ahead of ensure campaign end dates
influencing shoppers to explore the competition who may use are extended into the New Year.
new health-conscious items. this time to reset budgets. Take
Shoppers may also be open to the opportunity to win new
exploring new brands. share. ▪ Monitor Regularly –
Check Campaign Status in early
January , make sure your
campaigns have launched and
NEW YEAR, NEW YOU GROW SHARE continue running.In Summary
© 84.51˚ | 2021 | CONFIDENTIAL | 23Your Strategy for Success: 2021 Holiday Season and into 2022
Start Early and Stay Live. Searches and traffic are poised to increase significantly 2 weeks prior to
Halloween. Launch your campaigns accordingly to meet the rise in traffic. Also extend your end dates
into January or queue new campaigns for a 2022 start date to take advantage of the Q1 spike.
Prep to Optimize. Set-up and align campaigns with how you’d like to view them in the reporting interface
and/or how you receive budgets.
Diversify. Placements types, SKU selection, Targets for the most-well rounded, holistic strategy.
Bid Aggressively. Holiday time frames are one of the most competitive of the year, so plan out your benchmark
ROAS or Share of Impressions and bid appropriately.
Ensure your Creative matches your objective to best resonate with the right audience.
© 84.51˚ | 2021 | CONFIDENTIAL | 24What’s New In PIQ
© 84.51˚ | 2021 | CONFIDENTIAL | 25Upcoming Enhancements
Boost Your Campaign Management Maximize ROAS and Performance
Productivity with Audience Targeting
Introducing Bulk Campaign Management Introducing Audience Targeting
Bulk Operations feature eliminates the tedious Target specific audiences built on Kroger's first-
task of managing campaigns individually; make party data to improve campaign
hundreds of changes in a simple file. performance and ROAS or other campaign
objectives.
▪Eliminate the repetitive task of implementing
multiple campaign optimizations individually. ▪Evolution of current Advanced Targeting for
TOAs to unlock PLA participation.
▪Save time and more efficiently maximize ROAS
and other key KPIs by managing campaigns in ▪Audiences can be applied to campaigns within
bulk. the campaign builder in PIQ.
▪Coming in early October ▪Coming in ~OctoberThank You!
© 84.51˚ | 2021 | CONFIDENTIAL | 27Q&A
Support: Kroger@promoteiq.com
© 84.51˚ | 2021 | CONFIDENTIAL | 28Appendix
© 84.51˚ | 2021 | CONFIDENTIAL | 29Monitor and Optimize Your Campaign Impact
Use campaign change history and insights to quickly assess and track your results throughout the season. View
all changes made to campaigns in PromoteIQ. This allows you to visualize how campaign optimizations affect campaign
performance, helping you make better campaign decisions.
Hover over a campaign and click the icon
that appears to open the Campaign Change
Insights Dashboard
View every campaign change and the impact on
certain performance metrics across a specified
date rangeTrack Your Share of the Paid Digital Shelf
with the Share of Delivered Targets Report
What’s a Delivered Target? Share of Shelf? Share of Voice? Share of Target?
For PromoteIQ activated campaigns, the Delivered Target is the most There are a variety of share metrics used in the media industry.
relevant (sub commodity) that each product is assigned to. Each The share metric in this report is specific to paid impressions,
Search & Browse PLA campaign will include the relevant delivered clicks, and attributable sales. There is no organic search data
target taxonomies based on the selected products. To see what was included in this metric.
included you can scroll to the bottom of the campaign builder for the
campaign of your choice. Key Metrics
Share of Delivered Brand Impressions divided by the total
Impressions (%) number of impressions within a delivered
target.
Share of Delivered Brand Clicks divided by the total
Clicks (%) clicks within a delivered target.
Which Placements are Included?
This report features insights for Search & Browse PLA campaigns,
only. Share of Total Total Attributable Sales from the
Sales (%) brand divided by the total attributable
sales within a delivered target.
What is the Reporting Period?
The report is on a rolling 30-day cadence at the daily level.
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