Digging into Walmart Connect’s updates

Plus: Off-site programmatic retail media ad spending is surging APRIL 1, 2024 [Walmart Connect’s enhances network, leverages store footprint, emerging brands]( Walmart Connect today announced new in-store and off-site ad inventory, omnichannel measurement tools, and upper-funnel offerings. The [retail media network]( (RMN) is providing advertisers with more opportunities to connect with customers on app, online, and in-store, Rich Lehrfeld, senior vice president and general manager of Walmart Connect, said in an interview with our analyst Sarah Marzano. [Walmart]( will see $3.72 billion in US retail media ad revenues this year, per our March 2024 forecast. [Amazon’s]( US ad business is more than 10 times bigger at $41.95 billion. But Walmart has one clear advantage over Amazon—store footprint. Walmart Connect is increasing in-store [retail media]( with an enhanced sampling program and self-serve inventory for its TV Wall ads, as noted in a press release. Allowing advertisers to access screen inventory in an automated way and operationalize their campaigns will allow more advertisers to participate, said Lehrfeld. This in-store push will expand to non-endemic brands including automotive, entertainment, financial services, quick-service restaurants, and travel as Walmart Connect pushes into new markets. Story continues below. Walmart is also building out capabilities to measure conversion lift for in-store sales, store lift for in-store demos, and in-store attribution for search ads. “What we have found is that when people are searching, it leads to a sale in-store and not just online,” said Lehrfeld. Providing this attribution will increase transparency for advertisers and unlock greater ad revenues for Walmart Connect. Walmart Connect is also encouraging online ad spend from smaller advertisers by providing display advertising to brands of all sizes such that even emerging brands can buy self-service ads. Smaller advertisers need more automation, said Lehrfeld, and Walmart Connect’s goal through [programmatic]( and auction-based display advertising is to provide that to everyone. Lehrfeld also emphasized a focus on upper-funnel retail media advertising. The RMN plans to leverage AI and machine learning later this year to build and optimize ad creative. This is another way Walmart Connect will encourage emerging brands to advertise, as these smaller businesses don’t always have the resources to draft and iterate on their own ad creative. [Read online]( [Off-site programmatic retail media ad spending is surging]( Advertiser Perceptions expects a 30% rise in US retail media spending for 2024, driven predominantly by offsite programmatic advertising, which could draw over $20 billion from marketers. That would represent 167% growth over 2023’s $7.5 billion offsite programmatic tally. Our own retail media network offsite ad spending forecast has the category set to grow 64.1% this year to $11.04 billion. The two figures don’t tie up because of varying definitions, but both forecasts show the category is becoming a significant driver of retail media writ large. Why it matters: The ascent of offsite programmatic retail media underscores a pivotal shift as the industry increasingly relies on retailers’ data for external advertising efforts. [Offsite programmatic retail media ad spending is surging]( [Keep reading]( 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]( ©2024 EMARKETER, One Liberty Plaza 9th Floor, New York, NY 10006 [LiveIntent Logo]( [AdChoices Logo](