Vroom Delivery, a digital commerce platform for the convenience retail industry, is establishing a retail media network (RMN) for convenience retailers on its platform in partnership with Digits, a retail media agency based in Excelsior, Minnesota.
The partnership will allow retailers of any size to access advertising revenue through online ordering channels such as apps and websites. Major consumer packaged goods (CPG) companies will pay retailers for preferred digital slotting of products, leading to a significant reduction in cost for these retailers’ e-commerce programs.
Prior to this partnership, it has been difficult for small- and medium-sized retailers to access retail media revenue, according to Vroom. Miami-based Vroom Delivery has been able to build a generalizable solution and leverage its national network of stores so that retailers of any size can access this benefit. It’s expected that retailers will begin receiving their first revenue from CPG companies early in the first quarter of 2025.
The program is opt-in, meaning that retailers can choose whether to participate. Those that do can expect several months of Vroom’s platform fees paid for by CPG companies in the first year, increasing significantly in the second and third years, according to Vroom.
“Our goal is always to increase retailer revenue and the minimize cost of offering digital commerce solutions to their customers,” said John Nelson, CEO of Vroom Delivery. “Now that we have significant scale, the addition of Retail Media to the platform allows retailers of any size to access advertising revenue that historically has only been available to the largest retailers in the country.”
This is Digits’ first entry into the convenience retail media space. The company has been operating for more than eight years, providing retail media services primarily to grocery chains and directly for CPGs.
“This partnership will provide brands access to premium onsite retail media inventory,” said David Glaza, founder and CEO of Digits. “The convenience shopper has historically been difficult for brands to reach. Brands launching and promoting beverages, snacks and more will be featured prominently on the platform.”
The initial program will be for on-site media, including all Vroom products such as first party ordering, home delivery and in-store kiosks. However, the partnership between Vroom Delivery and Digits expects to quickly expand to off-site media. Off-site media will include CPG-funded advertising on social media and other external digital channels, driving additional traffic and revenue to retailers.
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