Co-op is shaking up the retail media scene with a new tool called Co-op Compass. This platform lets brands tap into the supermarket chain’s first-party data to target shoppers based on their buying habits.
The data is used to identify “convenience missions” – specific shopping behaviors like buying treats, stocking up on essentials, or grabbing food on the go. Co-op Compass then uses this info to create highly targeted ad campaigns. These ads appear on Meta platforms like Facebook and Instagram, as well as on third-party websites and apps.
Kenyatte Nelson, Co-op’s Chief Membership and Customer Officer, says first-party data gives brands an unmatched view of shopper behavior and preferences. This lets them create highly effective, targeted campaigns quickly. Nelson notes that Co-op Compass is a major step forward for the company’s retail media offerings, providing personalized ad experiences based on shoppers’ lifestyles and habits.
Co-op handles over 850 million transactions annually and has more than six million members. The company is using this data to expand its retail media product range. Co-op Compass will initially offer a managed service, activating audiences across social and digital channels. The plan is to add more ad pathways in 2025 and introduce a self-service option for advertisers.
Shifting Focus to ‘Moments of Purchase’
Katie Streeter Hurle, Chief Strategy Officer at SMG, highlights the importance of focusing on “moments of purchase” and “customer missions” rather than just targeting audiences. She believes retail thrives on impulse buys, and off-site advertising should be built around these concepts to work for advertisers.
Co-op is working with LiveRamp to develop Co-op Compass, extending their two-year partnership that started in October 2023. The goal is to boost the relevance of members and brands in first-party data-driven marketing and retail media. Co-op aims to triple its annual operating profit from media and intelligence by 2030.
Co-op Compass is set to revolutionize the retail media landscape by providing brands with a powerful tool to target shoppers based on their specific needs and behaviors. By leveraging first-party data and focusing on “convenience missions,” Co-op is poised to make a significant impact in the industry.