5 lessons for getting your retail media network right from the start

Walmart rolls out ad certification program for advertisers This edition is made possible by Sam’s Club Member Access Platform (MAP) OCTOBER 16, 2023 Learn the latest in retail media from experts at PepsiCo, Mondelēz International, and Georgia-Pacific during our upcoming “Attention! Trends and Predictions for 2024” summit. [Register for free today!]( [5 lessons for getting your retail media network right from the start]( US omnichannel retail media ad spend will more than double between this year and the end of our forecast period in 2027, reaching a total of $107.00 billion. In 2027, retail media will account for over a quarter (26.9%) of US digital ad spend, per our forecast. To get in on that growth, you have to avoid mistakes that could hurt your retail media network (RMN) before it matures. Here are some challenges to keep in mind. Make sure you’re in the right business [Gap Inc. made this mistake](when it attempted to build a retail media network for mostly nonendemic advertisers. Though nonendemic advertising from sources like film studios can be vital to RMNs, it was unclear how much pull Gap actually had to attract these buyers, according to our analyst Andrew Lipsman. Nonendemic ads can give RMNs new revenue streams, but ads featuring products you can buy on the retailer’s site are better suited to building out media networks because they are so close to the point of purchase. Story continues below. Leverage existing relationships “If you are a company that sells power tools, you’re going to advertise on The Home Depot’s RMN unless you’re crazy. That’s just a sensible, natural place to spend your money,” said our analyst Max Willens. Those companies that are already selling with a retailer are the perfect place to start courting ad spend. Recognize the lift of in-store retail media If you’re a newcomer to in-store retail media, it’s easy to overlook how robust your hardware needs to be. [Walgreens had this issue]( when using electronic cooler doors from the company Cooler Screens, which showed the wrong prices and items, according to court documents. “Stores are a very harsh environment,” said Susie Opare-Abetia, co-founder and CEO of digital signage company Wovenmedia, pointing to shoppers, carts, and industrial equipment. “You have to have very robust hardware, so that it doesn’t break just at the push of a shopping cart.” Get your search in order Poor search functionality can destroy a retail media business before it’s even started. Any [solid ecommerce business should already have top-notch search]( functionality. But this is doubly important for retail media, since 64.8% of US retail media ad spend will come from search next year, according to our forecast. Make sure you have a solid tech stack Some 51% of decision-makers at US and UK retail and travel organizations say they plan to bring their commerce media tech stack in-house, and 49% plan on switching technology partners, according to a Forrester Consulting study conducted on behalf of PubMatic. Attribution and measurement are two ways to boost retail media spending, so having the right tech sorted out from the start is key to seeing quick returns on retail media ad spend. [Read online]( [Walmart rolls out ad certification program for advertisers]( [Walmart Connect now offers an ad certification program]( that helps advertisers understand how the retail media network operates and the types of ad formats it offers. - The program provides an intro to retail media, which covers the breadth of Walmart’s ad capabilities, including on-site, off-site, in-store, and omnichannel ad formats. It also provides more in-depth coverage on sponsored products, sponsored brands, and sponsored video ads. - Next year, Walmart Connect plans to add courses on display ads, Walmart’s demand-side platform, in-store advertising, and its new Brand Shops, which the retailer just announced at its first seller summit in August. Why it matters: In 2024, we expect Walmart to grow its retail media ad revenues by 38.5%, more than every other retailer, including Amazon, per our forecast. By educating advertisers on its retail media capabilities, Walmart hopes to secure more investment from current advertiser partners and bring new brands on board. “Walmart has been on a yearslong mission to build an ecommerce platform capable of supporting a long tail of merchants,” said our analyst Max Willens. “Moves like this certification program, as well as the tools it unveiled at a sellers summit last month, show that it is confident that it is capable of attracting that long-tail of advertisers who might want to use its self-serve tools.” [Read online]( Email sent to: {EMAIL} If you cannot view the HTML newsletter, [please read it in your browser here](. [Become a Premium Subscriber]( | [Advertise with us]( [Manage your email preferences]( | [Unsubscribe]( | [Terms of Use]( | [Privacy Policy]( ©2023 Insider Intelligence, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](