ADVERTISING ON AISLE 5: WALMART’S SECRET WEAPON HyphaMetrics' UNIe system revolutionizes media measurement by capturing the complete TV omnichannel
experience, providing a comprehensive understanding of cross-platform consumption and empowering advertisers with actionable insights.
In the fiercely competitive retail landscape, the emergence of media network platforms has become a prominent trend, with giants like Walmart and Target expanding their reach through innovative advertising strategies. These platforms, known as Retail Media Networks (RMNs), are revolutionizing the
way retailers and suppliers connect with consumers, leveraging data-driven insights to deliver personalized marketing solutions. Walmart’s advertising division, Walmart Connect, is at the forefront of this transformative shift, experiencing substantial growth and positioning itself as a major player in the advertising industry. This article delves into the rise of Walmart’s extensive ad business and the significance of RMNs in the evolving retail landscape. A white paper published by researchers at the Sam M. Walton College of Business at the University of Arkansas sheds light on the increasing prevalence of Retail Media Networks. These networks enable retailers to leverage their assets, both offline and online, to reach customers effectively and provide personalized marketing solutions tailored to their needs. By utilizing their proprietary data and sharing it with suppliers,
retailers create opportunities for targeted advertising across various channels. The study reveals that approximately 600 retailers, including Walmart Connect, Walgreens Ad Network, Target’s Roundel, Lowe’s One Roof Media, and Sam’s MAP, currently offer media networks to suppliers. The Retail Media Network market is projected to surpass $50 billion in global revenue next year, with forecasts
predicting a 25% annual growth rate leading to $100 billion by 2026. This rapid expansion is expected to account for 25% of total digital marketing spending by 2026, as stated in a report by the Boston Consulting Group. Retailers are embracing RMNs as they provide additional revenue streams that help offset the industry’s compressed margins. Furthermore, these networks deepen the connection between retailers and customers, enabling strategic and personalized engagement regardless of the shopping
channel. The Boston Consulting Group emphasizes that being an early adopter in this space will yield significant rewards due to the evolving expectations and actions of customers. Walmart re-launched Walmart Connect in January 2021, with the ambitious goal of becoming one of the top 10 advertising platforms in the United States within five years. Rich Lehrfeld, the general manager for
Walmart Connect, recently shared that the company’s U.S. digital ad revenue growth is expected to outpace Google, Meta (formerly Facebook), and even Amazon this year. Walmart Connect underwent an upgrade in mid-2022, enhancing search relevancy and transitioning to a second-price auction model where the highest bidder wins but only pays 1 cent more than the second-highest bidder. These updates resulted in a remarkable 41% growth in the Connect business during the fourth quarter of 2022, pushing
ad revenue to a staggering $2.7 billion for the year. Additionally, Walmart grew its U.S. advertiser base by a remarkable 136% year-over-year. To maximize its advertising capabilities, Walmart has built multiple media connectivity through strategic partnerships with platforms such as TikTok, Snapchat, and Roku. By offering advertisers various avenues to reach customers wherever they are on
the internet, Walmart is catering to the evolving preferences of marketers. Moreover, Walmart capitalizes on its 4,700 U.S. store locations for in-store marketing, recognizing that brick-and-mortar sales still constitute a significant portion of overall revenue. The company is continually developing new experiences, such as demos, events, in-store screens, and interactive ways to engage with consumers in a customer-centric manner. Walmart emphasizes that retail media provides a brand-safe
environment for advertisers, alleviating concerns about ad placement and data collection. While the advantages of Retail Media Networks are evident for retailers, suppliers also reap numerous benefits from participating in these networks. By collaborating with retailers like Walmart through RMNs, suppliers gain access to valuable customer insights and data that enable them to make informed
marketing decisions. This data-driven approach allows suppliers to target specific consumer segments, optimize their advertising campaigns, and maximize their return on investment. Through RMNs, suppliers can increase their brand visibility and reach a wider audience. By leveraging the extensive customer base of retailers like Walmart, suppliers can showcase their products to millions of
potential customers, driving brand awareness and consideration. The personalized nature of RMNs ensures that suppliers’ ads are delivered to relevant consumers, increasing the likelihood of conversions and sales. Additionally, RMNs provide suppliers with valuable analytics and reporting tools to measure the effectiveness of their campaigns. They can track key metrics such as impressions,
clicks, conversions, and return on ad spend, allowing them to refine their strategies and optimize their advertising efforts in real-time. This data-driven approach empowers suppliers to make data-backed decisions and allocate their marketing budgets more efficiently. Moreover, participating in RMNs enables suppliers to forge stronger partnerships with retailers. By collaborating closely
with retailers through these networks, suppliers can gain a deeper understanding of consumer preferences, market trends, and emerging opportunities. This collaboration fosters a mutually beneficial relationship, where suppliers can align their product offerings with retailers’ objectives and tailor their marketing messages to resonate with the target audience. The exponential growth of
Walmart’s advertising business and the increasing prominence of Retail Media Networks highlight the evolving landscape of retail marketing. As consumers continue to expect personalized experiences and targeted advertisements, RMNs play a pivotal role in bridging the gap between retailers, suppliers, and customers. Walmart Connect’s meteoric rise and ambitious goals demonstrate the transformative power of RMNs in driving revenue, enhancing customer engagement, and providing valuable marketing
opportunities for suppliers. With the continued growth and potential of RMNs, retailers and suppliers alike stand to benefit from this data-driven approach to advertising in the dynamic and competitive retail industry. |
All the news you need today, in a format that isn't TL:DR, summarized for the busy executive.
impact.com rocks Q1 with a slew of new clients, innovative product launches, and a conference so hot, it's sold out! They've added over 200 brands, rode the creator economy wave, and CEO David A. Yovanno knows partnerships are the key to success. With Google integrations, Extended Search, and a waiting list for
their Partnerships Experience Event, impact.com is serving up growth with a side of inspiration. Oh, and did I mention the awards, podcast, sustainability initiatives, and top talent acquisition? They're taking partnerships to a whole new level while saving the world one carbon footprint at a time. Bravo!
When it comes to influencer marketing for affiliate programs, forget likes and followers, says Mike Balducci from CreatorIQ. In the world
of e-commerce, where growth rates are slowing down and performance marketing is key, brands should focus on posting frequency and links. Smaller creators with engaged audiences often outperform mega-influencers, and social metrics like recent posts and brand collaborations matter more than likes and comments. To succeed, brands need powerful influencer discovery tools, transparency, integration between creator and affiliate platforms, and the ability to recruit and manage a multitude of
creators. It's time to shift gears and prioritize the right metrics for successful creator-led affiliate campaigns.
In the ever-evolving ad ecosystem of Meta, understanding the formulas that influence CPA and ROAS is crucial for performance marketers in 2023. By mastering three simple formulas, marketers can optimize their brand's cost per acquisition and return on ad spend. The first formula, APM (actions per mille impressions),
combines click-through rate and conversion rate to measure the effectiveness of a campaign. A high APM is essential for winning Meta's auction. The second formula relates CPA to APM and CPM (cost per mille), allowing marketers to evaluate and improve performance more effectively. Finally, the third formula calculates ROAS by incorporating APM, average order value (AOV), and CPM. Marketers can increase ROAS by improving APM, increasing AOV, and reducing CPM. Understanding and utilizing these
formulas will give marketers a competitive edge on Meta's platform. US senators have called on the Federal Trade Commission (FTC) to take action and protect older adults from the risks posed by artificial intelligence (AI). In a letter to FTC Chair Lina Khan, the senators requested information on the agency's efforts and strategies to combat AI-related fraud and scams targeting
older Americans. The senators highlighted the vulnerability of long-term care facilities to cybersecurity attacks and AI-related threats, including impersonation scams and identity theft. They urged the FTC to update its educational materials and awareness campaigns to address the rising risks and asked for details on the agency's plans to deliver on its joint pledge with other agencies to monitor and regulate the use of AI. The senators cited examples of AI-related fraud schemes,
emphasizing the need for swift action to protect older Americans from these increasingly sophisticated threats.
Instacart has found a clever way to make more dough than just delivering groceries, as their ad revenue surged by 30% in 2022, bringing in a whopping $740 million. While the digital ad
market remained largely stagnant, Instacart managed to scoop up almost 30% of their total revenue through advertising. Talk about a grocery shopping and advertising combo that's reaping big rewards! As giants like Google and Meta see their advertising market share drop, Instacart is emerging as a viable platform for brands to directly connect with consumers. Looks like the rise of retail media networks is giving the big players a run for their money, and Instacart is at the forefront of this
deliciously profitable trend.
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CTV’S CAPTAIN FANTASTIC: MIKE SEIMAN AND THE RISE OF PERFORMANCE-DRIVEN TV As the CEO and Chairman of Digital Remedy,
he's been juggling eyeballs, clicks, and ROI like a seasoned pro. From direct response ad networks to media buying nirvana, Seiman's journey has been a wild ride filled with lessons, laughter, and a healthy dose of innovation. With his sights set on conquering CTV and OTT, he's rewriting the rules and turning campaigns into dazzling performances. So, grab your popcorn and get ready for a show like no other, because with Seiman at the helm, digital advertising just got a whole lot wittier and a
whole lot more profitable. READ ENTIRE STORY
WTF IS MARYLAND's DIGITAL AD TAX ALL ABOUT??? Maryland's pioneering digital ad tax has left the digital ad industry
scratching its head and pondering its impact. With big tech companies facing varying tax rates based on their global revenue, the industry wonders if this move will level the playing field or simply give Maryland advertisers a case of FOMO (Fear of Missing Out). Will this tax disrupt the online advertising landscape, or will advertisers find clever ways to navigate this new terrain? Only time will tell if Maryland's digital ad tax is a stroke of genius or a costly clickbait
adventure. READ ENTIRE STORY
FTC’S BCP ISSUES CRIMINAL LIAISON UNIT REPORT OUTLINING WRONGDOER ACCOUNTABILITY EFFORTS On January 30, 2023, the Criminal Liaison Unit of the Federal Trade Commission’s Bureau of Consumer Protection (BCP CLU) issued its 2022 Criminal Liaison Unit Report, describing the history of the BCP CLU, its program operations, and major accomplishments over the past five years. In an effort to ensure criminal prosecution of appropriate consumer fraud cases, the BCP CLU refers cases to partner agencies with criminal jurisdiction, including U.S. Attorney’s Offices
across the county, Divisions of the Department of Justice (DOJ) and others. . READ ENTIRE STORY
THE CZAR OF TCPA DEFENSE: ERIC TROUTMAN’S REIGN OF LITIGATION STRATEGY Eric Troutman,
commonly known as “the Czar” in certain legal circles, is one of the country’s top class action defense lawyers and a nationally recognized expert in Telephone Consumer Protection Act (TCPA) litigation and compliance. His deep experience and encyclopedic knowledge of the TCPA landscape make him an invaluable resource to institutional compliance teams struggling to comply with the shifting regulatory landscape. Eric Troutman is well known for finding creative solutions to complex legal problems
and has earned numerous first-in-the-nation results and precedent-setting cases for his clients. READ ENTIRE STORY
KPIS THAT ACTUALLY MATTER: A GUIDE TO PROGRAMMATIC ADVERTISING SUCCESS The world of
programmatic advertising can be overwhelming, with a seemingly endless array of metrics to choose from. It’s easy to fall into the trap of measuring vanity metrics that don’t provide any real insight into the success of your campaign. But fear not, my dear reader, for I am here to guide you through the world of programmatic KPIs and show you which metrics to focus on to ensure your campaign’s success. . READ MORE OF THIS STORY
SEPHORA U.S. TAPS ZENA SRIVATSA ARNOLD TO LEAD GROWTH STRATEGY Sephora, the French multinational retailer of personal care and beauty products, has appointed Zena Srivatsa Arnold as its new chief marketing officer for the U.S. market. Srivatsa Arnold joins Sephora from PepsiCo, where she served as the senior vice president of carbonated soft drinks. She has also held senior marketing and management positions at Google, Kellogg Company, Proctor & Gamble, and Kimberly-Clark. Her appointment
follows a period of C-suite reshuffles at Sephora, including the appointment of Guillame Motte as global president and CEO and the transition of Deborah Yeh to global chief purpose officer. READ THE FULL STORY
COLLABORATION IS KEY: UNLOCKING THE POTENTIAL OF FIRST- AND SECOND-PARTY DATA STRATEGIES The age of relying on third-party data for media buying may be coming to a close, but don't count out the power of collaboration just yet. Data clean rooms (DCRs) have emerged as a popular avenue for brands to uncover valuable insights, but they're not the end-all-be-all solution to marketing strategies in the face of a looming recession. While a DCR can help match audiences and allow brands to... READ MORE
DAVE MORGAN’S CRYSTAL BALL: HOW NETFLIX’S AD TIER WILL SHAPE THE VIDEO AD LANDSCAPE As Netflix dives into the realm of ad-supported streaming, it’s clear that the video advertising landscape is about to experience a seismic shift. With the streaming giant making its move, we sat down with Dave Morgan, CEO of Simulmedia, to discuss how Netflix’s new tier will impact the industry and what it means for advertisers, long-form video content, and the
advertising world at large. In light of the tough ad economy in 2023, Morgan believes that Netflix’s ad-supported tier is well-positioned to succeed. “It still has limited inventory as the ad tier just begins to scale. Thus, it doesn’t need huge commitments from advertisers, just modest
commitments from a number of the top brand advertisers, and it doesn’t need to trade piercing for volume like fully scaled players need to when budgets are under pressure,” he says. READ MORE NOW |
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