Dive Brief:

• Albertsons Media Collective, the grocer’s retail media arm, announced this week the launch of a pilot program in which it’s replacing its traditional digital circular ads with interactive digital circular ads across Facebook and Instagram.
• The dynamic and shoppable ad campaign pilot, which involves a partnership with Meta and advertising services company Kargo, will feature general merchandise, health and beauty care products. 
• Albertsons said the new campaign provides shoppers with an interactive digital experience that connects them to their local store to clip offers and add products to their shopping lists.

Dive Insight:

Albertsons’ retail media arm positioned the pilot as a way for the grocer to connect with more consumers and transform digital circular ads to boost shopper attention to them. 

With the campaign, Albertsons Media Collective said it is combining product and promotional data. This merger allows for “advanced targeting, actionable content and measurable performance,” according to a LinkedIn post from the company.

Albertsons Media Collective said that it plans to expand the dynamic ad campaigns to display and connected TV as well as dynamic localization and personalization, saying those additions are expected to “better engage shoppers and drive sales.”

Albertsons’ work on digital circular innovation comes at a time when grocers are rethinking their circulars, with some embarking on a print-to-digital switch. Kroger, for example, decided earlier this year to phase out home delivery of printed circulars in regions across the country and transition those customers over to a digital format.

Other grocers, though, aren’t ready to give up printed ads. Earlier this year, Giant Eagle resumed mailing printed weekly circulars in the Cleveland area and Pittsburgh. More than half (55%) of surveyed retailers found print circulars very effective, per a report last year from FMI —The Food Industry Association. 

Digital ads have also faced some backlash from consumer rights groups who claim that digital-only deals are not as accessible to consumers who might not have adequate internet access or who are not tech savvy.

The focus on circular ads is just one facet of the growing effort by grocers to boost retail media offerings. Sprouts Farmers Market, Save Mart and Northeast Grocery have all debuted retail media networks this year.