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05/14/2021

Petco shoppers receive targeted digital ads

Dan Berthiaume
Senior Editor, Technology
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Petco Health and Wellness Co. is enabling its vendors to sponsor products and display ads across its desktop and mobile commerce platforms.

The specialty pet products chain is the latest retailer to partner with the CitrusAd retail media platform, following recent deployments by Wakefern Food Corp. and Target. Using the platform, Petco’s vendors can launch relevant, sponsored product and display media campaigns across its digital commerce touchpoints to increase sales. 

Participation is available either on a managed service or self-serve basis. The platform’s real-time relevancy engine, combined with Petco’s first-party data, helps place ads in an organic, relevant manner. Advertisers can run and measure campaigns with a transparent dashboard to measure awareness activity, engagement, conversions and return on ad spend (ROAS).

A growing number of grocery and CPG retailers, including Kroger and Walgreens, have opened their customer base to targeted advertisements from suppliers in the past 12 months. But Petco’s entry into sponsored, targeted display ads may signal a shift in the space similar to that in on-demand delivery. Once primarily used in the grocery/CPG vertical, over the past year on-demand delivery has become a common offering among retailers of all types.

Beginning in December 2020, several Petco vendors were involved in pilot CitrusAd campaigns, allowing them to participate in various ad targeting opportunities. Brands in the pilot reportedly experienced an average of 300% to 400% return on ad spend, not including an expected in-store impact.

“As part of our mission to improve the lives of pets and pet parents, partnering with CitrusAd will help Petco provide a more personalized shopping experience as our customers’ embark on their pets’ health and wellness journeys,” said Darren MacDonald, chief digital & innovation officer at Petco. “CitrusAd’s retail media technology will help our vendors reach Petco’s strong ecosystem of pet parents and educate them on the products and merchandise that meet their pets’ specific needs.”

“CitrusAd is delighted to partner with Petco as it continues to support the health and wellness of pets and pet parents through its ecommerce and omnichannel solutions,” said David Haase, chief revenue & operations officer of CitrusAd. “We look forward to a very successful digital retail media journey with Petco and their vendors to provide informed pet care and health solutions to its customers.”

Petco operates more than 1,500 locations across the U.S., Mexico and Puerto Rico, including more than 105 in-store veterinary clinics.