Is Walgreens’ first-party data a good match for advertisers?
Walgreens has rolled out its first advertising network, promising first-party data insights into more than 100 million members of the MyWalgreens loyalty program.
WAG (Walgreens Advertising Group) promises advertisers the ability to:
- Tailor audiences: “Develop one-to-one customer experiences and reach custom audiences through our advanced analytics, modeling capabilities and foundation of technology.”
- Connect with shoppers: “With Walgreens customers matched to offsite platforms like our Walgreens DSP, Facebook, Pinterest and YouTube, you can reach your brand shoppers in the digital ecosystem at an unparalleled scale. Plus you’ll have access to advertising across our owned channels, including our website, 5-star rated app and email database.”
- Boost returns: “Optimize your media spend and ROI through closed-loop measurement and channel transparency. We also offer daily SKU level transaction-based optimization and in-campaign reporting through the Walgreens DSP.”
Epsilon supports a demand-side platform for Walgreens’ service that enables advertisers to programmatically purchase digital ad inventory, while the chain has partnered with Adobe and Microsoft to present media buyers with access to customized audience segments.
“We have an unparalleled insight into consumers’ needs and shopping preferences when it comes to health and wellness items and everyday needs,” said Luke Kigel, VP, Walgreens integrated media and head of WAG. “Leveraging advanced technology to unlock the power of our first-party data, we can help brands accelerate ROI by delivering relevant and personalized experiences to their highest value consumers.”
CVS and Home Depot launched their first networks earlier this year, joining Walmart, Target, Best Buy and Kroger in making bigger advertising pushes over the last year. Amazon.com has become the third-largest digital advertising platform due to the allure of first-party data and as alternatives are sought to Google and Facebook.
“The ad industry is starting to wean itself off traditional targeting and metrics programs in the face of changes in privacy laws that are forcing online platforms, like the Google Chrome web browser, to withdraw support for measurement tools such as third-party cookies,” wrote Ronan Shields for Adweek. “The inherent value of first-party data is clear: rather than rely on outside tech companies, companies from retailers to online publishers own the consumer information that is gleaned from consumers visiting and registering on their sites.”
- Walgreens Introduces Walgreens Advertising Group (wag), a New Advanced Data and Technology-led Retail Media Offering for Brands to Deliver Personalized Experiences to their Best Shoppers – Walgreens/Business Wire
- WAG – Walgreens
- Say Hello to Walgreens Advertising Group, the Latest Retail Media Network – Advertising Age
- Say Hello to Walgreens Advertising Group, the Latest Retail Media Network – Adweek
- Walmart rolls out self-serve ads – RetailWire
- Can Walmart beat Amazon, Facebook and Google at the online ad game? – RetailWire
DISCUSSION QUESTIONS: What do you think of the potential appeal to the advertising community of Walgreens’ new advertising network? Will providing access to first-party data make advertising a meaningful revenue stream for a wide range of retailers?