SVP of AD Retail Media Bobby Watts
After making the decision last year to bring its retail media business in-house, Ahold Delhaize USA wasted no time getting its capabilities up and running. Bobby Watts, SVP of AD Retail Media, spoke with Progressive Grocer about how the company’s first year in the retail media business has unfolded, where it’s headed and his thoughts on the future of this increasingly relevant business.
AD Retail Media is a division of Peapod Digital Labs, the digital, e-commerce and commercial company of Ahold Delhaize USA, and encompasses an end-to-end retail media business supporting the Food Lion, Giant Food, The Giant Co., Hannaford and Stop & Shop banners. The business offers a full capability suite that includes traditional sponsored search and social, on-site display, off-site display, CTV, a digital out-of-home network and more.
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The decision was made in July 2022 to bring Ahold Delhaize USA’s retail media business in-house, Watts explained, and wheels were fully in motion just two months later to get teams stood up and to get the technology integration underway. The new business was nearly fully functional by Jan. 1 of this year.
“Q1 was bumpy, as you could imagine, but we’ve been really building momentum and I feel like we have a really good trajectory from where we sit today,” Watts said.
Reflecting on the first year of AD Retail Media, Watts shared that the whole organization has had to learn to shift their mindset to think more like a media publisher as opposed to a traditional grocer.
“Inside of our organization, retail media is so new,” Watts said. “While we’ve been at it for a little while, when you talk about doing it in house and acting like a media publisher and not like a traditional retailer, it’s a big shift in mentality, a shift in financial investment and a shift in folks understanding the capabilities, [as well as] how we can actually drive our mutual business between the local brands, CPGs and agencies we partner with.”
Watts also said his team quickly realized the importance of having the right talent on board, especially as it pertains to salespeople with specific knowledge of the full-funnel omnichannel activations the company is focused on delivering to its advertisers.
“As we looked across the different functions, and as we’ve stood up sales, account management, ad operations, analytics and marketing, one of the things that’s been really interesting and challenging at the same time is just ensuring that we have the best-of-the-best talent,” Watts explained.