Hy-Vee debuts in-house retail media network

Dive Brief:

Hy-Vee unveiled RedMedia, its full-scale, in-house retail media network, at Groceryshop last week in Las Vegas, per a Friday announcement.
The platform will connect the grocer’s brand partners with its customer base across numerous platforms and help build brand affinity as well as personalized interaction for shoppers.
Regional grocers are finding ways to create retail media networks that are on par with national grocers as these services increasingly become an essential part of the retail industry.

Dive Insight:

Hy-Vee’s RedMedia platform enables advertisers to reach specific customer bases across multiple digital platforms, including Hy-Vee digital platforms, in-store advertising and “brand-safe sites,” according to the announcement. In turn, shoppers receive personalized ads and messages from brands based on their purchasing behaviors and brand preferences.

Jason Farver, Hy-Vee RedMedia’s president, said in a statement that leveraging insights gathered from the new in-house platform will lead to an improved customer experience “by reaching the right customer at the right time with the right product offering.”

The grocer added it is in a unique position to offer brand information that goes beyond “simple demographics and wide-ranging buying behaviors” because of its broad business portfolio, which includes grocery, pharmacy, dietetics, specialty health care, banking and more, per the press release.

Hy-Vee’s footprint spans more than 285 retail locations across eight Midwestern states, along with more than 180 Fresh and Fast convenience stores.

Approximately two weeks prior to RedMedia’s announcement, Hy-Vee posted at least two job listings for a Retail Media Analyst position, which aims to provide insights and analytics to support the Hy-Vee sales teams and brand partners as well as drive effective retail media campaigns.

While RedMedia is Hy-Vee’s first in-house retail media platform, the grocer is not entirely new to the space, having partnered with Citrus Retail Media in 2019. Citrus provides retailers like Hy-Vee with a retail media platform.

Regional grocers typically rely on third parties, like Citrus, Pacvue or Instacart, to create and operate their retail media networks. Giant Eagle recently launched an entirely in-house network called Leap, which leverages the grocer’s customer loyalty program. Giant Eagle’s retail footprint encompasses more than 400 grocery stores, along with close to 200 GetGo Cafe + Market convenience locations.