TV-style micro-advertisers shift focus to retailers such as Walmart and Amazon

The next battlefield in the advertising market is not on television, but in stores and on mobile phones.

The next battleground in the advertising market is not on television but in stores and on mobile phones.
Television has long been a prime target for advertisers until technology companies like Alphabet (GOOGL-US) and platforms owned by Meta (META-US) like Facebook began to encroach on the market.
While ad revenue is rapidly shifting from traditional TV to streaming, retail and consumer goods companies are now a big part of it.
Data from eMarketer and GroupM, the media investment arm of WPP, the world\’s largest advertising group, show that the so-called retail media networks of e-commerce, retail and consumer goods companies such as Amazon (AMZN-US), Walmart (WMT-US) and Kroger (KR-US) are growing Attracting billions of dollars in advertising.
Global retail media ad spending is expected to more than double from $114.18 billion in 2023 to $233.89 billion in 2027, according to eMarketer.
Data shows that retail media is expected to account for a larger share of digital ad spend and has begun to overtake traditional media spend, increasing from 18.9% in 2023 to 25.7% in 2027.
Ads purchased through retail media networks typically appear on in-store monitors and screens, websites, mobile apps, streaming services, smart TVs and social media.
Not only does it provide fertile ground for advertisers to get their products in front of consumers who want to consume them but it also provides a wealth of first-party data.
The vast customer profiles that retailers have, from one-time buyers to loyal customers, are extremely valuable to advertisers who want to optimize exposure.
“If a brand advertises digitally and a customer makes a transaction a week later in a store or club, we can connect them to let them know the ad was effective,” said Walmart CEO Doug McMillon.
\”This is the differentiating advantage we have.\”
\”Wal-Mart is a particularly important market player.
While it\’s still new territory for the retailer, advertising has boosted the big box retailer\’s bottom line in recent quarters.
The company also recently agreed to acquire TV maker Vizio to further boost its advertising business.
Amazon is considered the largest retail media network in the U.S. among companies tracked by eMarketer, accounting for about 75% of retail media ad revenue.
Other top earners include Walmart, Instacart (CART), eBay (EBAY) and Etsy (ETSY).

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