Walgreens’ advertising wing announced an expansion of its retail media network that leverages ecommerce technology provider Rokt.
Through the partnership, the companies said, Walgreens Advertising Group will use Rokt technology “to make transactions more relevant to each shopper.” That includes leveraging artificial intelligence (AI) and machine learning to personalize offers for consumers.
In addition, the partnership with Rokt opens Walgreens’ advertising platform to non-endemic brands. That refers to those that do not sell their products through the retailer. The non-endemic brands’ products will appear on Walgreens.com’s order confirmation page, according to Rokt.
The change to Walgreens’ media network ecosystem comes months after the retailer announced it had completed its transition to become a private company. To finance the deal, billionaire Stefano Pessina and his family partnered with Sycamore. Pessina and his family also “reinvested 100% of their interests in Walgreens,” the parties said.
Walgreens ranks No. 14 in the Top 2000 Database. The Top 2000 ranks North America’s largest online retailers by their annual ecommerce sales.
How Walgreens is using Rokt technology for its retail media network
Abishake Subramanian, group vice president of consumer marketing, loyalty and Walgreens Advertising Group, said the retailer has committed to connecting brands to its “loyal and engaged” consumer base.
“By expanding our retail media ecosystem with AI-powered capabilities, we’re giving advertisers new ways to engage customers in meaningful moments while creating incremental value for Walgreens,” Subramanian said in a statement announcing the partnership with Rokt.
Rokt framed the partnership as allowing Walgreens to continue expanding its position as “one of the fastest-growing retail media networks in the U.S.” It did not quantify the rate at which Walgreens’ retail media network is growing.
Craig Galvin, chief revenue officer at Rokt, said the technology company is “excited” to help Walgreens “deliver real-time relevance” for its consumers across the U.S.
“Together, we’re planning to unlock a new monetization channel that enhances the customer experience and delivers measurable performance at scale,” Galvin said in a statement. At the same time, Rokt is “putting Walgreens’ in-house initiatives at the forefront to maximize the company’s customer experience.”
Petco, Macy’s, Ulta Beauty and Albertsons have each partnered with Rokt to leverage its ecommerce technology for their retail media networks. Within the Top 2000 Database, each of the four retailers ranks among the largest 100 online retailers.
Rokt said that in 2024, its revenue increased more than 40% year over year, to $600 million.
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