Kroger Precision Marketing Setting Benchmarks for Carbon Measurement in Retail Media

Months after launching with Scope3, Kroger Precision Marketing (KPM) is creating the first benchmarks for carbon measurement in retail media.

Initial results of our work together revealed significant improvements in the carbon footprint of KPM's programmatic campaigns. Utilizing Scope3 data in an alpha test, KPM’s campaigns dropped to an overall carbon cost that’s 37% lower than the US benchmark in programmatic.

That’s good news, as the industry navigates signal loss and its effect on the efficiency of ad campaigns.

We are experiencing a unique moment of disruption in advertising and commerce. Retailers have emerged as unexpected innovators, with retail media networks like KPM introducing valuable first-party, purchase-based signals. By integrating retail data with ad inventory, programmatic advertisers can ensure relevance and achieve real-time, attributable sales.

Our work together is now starting to show clear alignment between the excitement around retail media and the industry’s call for a more sustainable ecosystem.

Cara Pratt, SVP of Kroger Precision Marketing spoke with us to share why her team is bullish on using sustainability as another lever for increasing efficiency and shaping a better future for advertising:

Brands are becoming aware of the carbon impact of wasted impressions. What contributes to the high levels of waste in programmatic advertising?

Cara Pratt: The ad tech ecosystem was never designed for consumers. Selling cheap impressions—instead of results—has incentivized ad waste, such as made-for-advertising websites which exist solely to burn through ad impressions.

Focusing on mass impression loads over precision audiences means many ads don't reach the right people, leading to waste.

It’s no wonder that both consumers and advertisers think the media industry is falling short. The inability to identify the right audience has led to missed business opportunities. Half of demographic ad targeting is wrong. The ANA estimates that billions of dollars are being wasted every year. It turns out that cheap impressions aren’t cheap.

How should brands approach the balance between cost-vs-quality in programmatic advertising today?

CP: It is about looking at the total value and business impact rather than just the cost-per-thousand impressions (CPM) of a campaign. Key metrics should also include outcomes like sales lift, units sold, household penetration and lifetime value. This approach ensures media investments drive returns without compromising on quality or environmental responsibility.

Wasted ad impressions are the inevitable result of focusing exclusively on lower CPMs rather than measurable business outcomes. Serving “cheap” digital ads is energy-intensive – and wasted impressions are adding unnecessary carbon emissions to the atmosphere.

How are retailers altering the incentives in programmatic advertising?

CP: Marketers can only act on the metrics they can measure. Retailers like Kroger are enabling advertisers to measure and act on meaningful metrics in programmatic campaigns —such as incremental households or incremental sales.

When the industry prioritizes real outcomes, the entire online experience improves. Publishers are incentivized to create high-quality content to attract genuine audiences rather than generating fake ad impressions.

Precision purchase-based audiences will help brands buy fewer – but better – ad impressions. And carbon emissions – together with the overall ad performance – will be key media buying criteria.

What is the carbon impact of applying retail data to programmatic advertising?

CP: Since partnering with Scope3 last fall, Kroger Precision Marketing has developed retail media’s first benchmarks for carbon measurement.

Key data points from the pilot reveal significant improvements in KPM's programmatic campaign carbon footprint. Initially, the effective carbon cost (gCO₂PM) was 229—already 17% better than the US market benchmark of 276. After making adjustments based on Scope3 data in an alpha test, the overall gCO₂PM of KPM’s campaigns dropped to 174—resulting in a 37% lower carbon cost than the US benchmark.

Testing is currently underway to reduce carbon output even further. As additional data points are entered into KPM’s system, media buyers will further optimize and lower the carbon output.

Best of all, these carbon reductions are made without sacrificing business impact. Using precision audiences – fueled by retail purchase data – is a win for both media performance and the environment.

KPM is committed to reducing carbon in digital media campaigns and lowering ad delivery on high-emitting, climate-risk inventory.

How can companies effectively utilize this data?

CP: Industry players can’t wait for the programmatic supply chain to evolve; we need to act now. Reducing media waste requires collaborations like the one between Scope3 and Kroger Precision Marketing.

Today, brands can identify high-emission sites to either improve their efficiency or shift spending to sustainable options.

Scope3’s open methodology promotes transparency and accountability, leading to fewer, better ads that are both cost-effective and environmentally friendly.

What’s your call to action for advertisers?

CP: Don’t miss out on this moment of transformation. When retailers, advertisers, and ad tech providers work together, we can create innovative, sustainable ad solutions that drive results for brands – and reduce ad waste.