Roger Dunn’s Post

Amazon Advertising vs. Walmart Connect: 2022 vs. 2023 Retail Media Growth Analysis. While Walmart's growth slightly outpaces Amazon's (26.0% vs. 24.4%), Amazon's performance is notably more impressive. Walmart's ad revenues have grown in line with its e-commerce growth (22% increase from 2022). In contrast, Amazon has managed to double its ad business's growth rate compared to its e-commerce business. This shows that Amazon has once again succeeded in extracting more advertising revenue per dollar revenue. They continue to enhance monetization per user. This achievement is particularly striking given the significant antitrust complaint targeting Amazon's ad business and pricing strategies. It seems they just keep going. What's the secret behind Amazon's outstanding performance? Share your thoughts in the comments. #amazonadvertising #walmartconnect #retailmedia #commercemedia

We are headed into a future where these “ad networks” also sell things “on the side”. With insane margins on operating ad networks, marketplaces will wonder why they need to sell direct anyway or have stores. 3rd parties will build, sell, deliver everything and these companies can provide the tech and make money on every step of the transaction.

🏬 When it comes to digital advertising, the duopoly of Google and Facebook is expanding to become a triopoly with the entrance of retail sector (Amazon and Walmart). 💰 As reported by Press Gazette, this trend is particularly strong in the US but is also spreading to European markets. In fact, Walmart is investing heavily in its digital inventory, spending $2.3bn and seeking synergies with Vizio (per LionTree). 📊 Opinion: this shift will likely lead to a decrease in direct ad funds for publishers, as retail stores take a larger slice of the digital advertisement pie. Keep an eye on this trend as it continues to shape the digital advertising and publishing landscape. #digitaladvertising #duopoly #triopoly #amazon #walmart #publishers #advertisingtrends

Quite a buzz has erupted this week in the #retailmedia world from Walmart's acquisition of TV maker VIZIO. At first glance you might think this is an odd acquisition for a retailer, but in actual fact it's a well played strategic move by Walmart's CEO Doug McMillon. Walmart is second to only Amazon in the US, and in order to compete and enhance profitability, Walmart needs to relentlessly focus on enhancing the #customerexperience right across their path to purchase, from their e-commerce platform to the speed and availability of product delivery. To do so requires cash. And lots of it. Where to get this cash? Advertising. Both Amazon and Walmart have created significant revenue streams from their Retail Media Network businesses. But currently, Amazon dominates Walmart, with $47B of ad revenue coming in versus Walmart's $3.4B over the past 12 months. That's a lot more cash Amazon has to invest in its customer experience than Walmart. What's more, #CPG advertisers are becoming increasingly savvy and more demanding of their RMNs. New ways to reach customers, with less media #wastage and most importantly closed-loop #measurement is vital to unlock those incremental brand dollars. By acquiring Vizio, Walmart has significantly upped its retail media capabilities; it now owns the tech #hardware, which it will sell as a loss leader, increasing its margin on every ad dollar, its increased its #audience reach to serve advertising direct into the home via Vizio's #CTV platform and ultimately enhanced its opportunity to monetize Walmart's valuable first-party #data with closed-loop reporting on retail sales for its advertisers. A bold and cleaver move by Walmart. Will other retailers follow suit? They'll need deep pockets and a big check book to compete. Some great articles and comments out there already, two great ones from The Drum and Fortune in the comments. Threefold-Agency | SMG

Since taking over as Walmart CEO in 2014, Doug McMillon has increasingly pushed the brick-and-mortar retailer into new business lines with the goal of "making money while we sleep," as a former company insider told me in my book Winner Sells All. From digital advertising to subscription services like Walmart+, McMilllon wants Walmart creating new profit streams that generate cash to invest back into Walmart's core business. Why? Amazon's highly profitable advertising business is more than 13x bigger than Walmart's. Amazon also possesses that little side business called Amazon Web Services (AWS) that generated $90 billion in revenue last year and $24 billion in operating profit -- or about two-thirds of Amazon's overall operating income. With these cash machines, Amazon is able to invest even more into its lower-margin e-commerce business to increase delivery speeds and experiment in other areas like grocery stores or generative AI. Now, Walmart's acquisition of VIZIO is McMillon and company's latest attempt to bolster one of its new more-profitable business segments. “I’m not naturally a risk taker,” McMillon told me in my book. “I don’t gamble. I don’t jump off bridges with a bungee cord.” “But this company,” he added, “to be here in the next generation, has to take risks.” Read more about this dynamic in my most recent article for Fortune https://lnkd.in/evNHAWJd

🔍 Retail Media Networks: The Next Frontier Retail giants like Amazon are showing how powerful retail media networks can be thanks to first-party data. In 2023, Amazon pulled in a staggering $46.9 billion from advertising — mostly through sponsored ads on its site. That makes it the third-largest ad platform in the U.S. behind Google and Facebook. But it’s not just Amazon. Even companies like DICK'S Sporting Goods are catching on that the future of retail isn’t just about selling products. It’s about using data to build powerful advertising platforms that drive growth. At GrowthLoop, we’re all in on helping businesses use their first-party data to get ahead in this new landscape. The retail game is changing — and we’re here to help. https://bit.ly/4dUO4ZB #RetailMedia #FirstPartyData #DigitalTransformation #GrowthLoop

Don't put all your eggs in one basket! While Amazon is a major player, it's not the only game in town. Reach a massive audience with lower advertising fees than Amazon on Walmart Marketplace! 90% of Americans shop at Walmart - that's a huge opportunity to get your brand noticed among loyal customers. Plus, with less competition, Walmart offers a chance to stand out. Thrilled to announce I'm officially Walmart Certified through Walmart Connect, and I'm confident this is the next big platform for advertisers. #WalmartAdvertising #MultiChannelMarketing #WalmartConnect #Teikametrics

Advertisement revenue is certainly a high margin revenue stream and Walmart knows that. Acquiring Vizio to get access to over 500 direct advertiser relationships will ensure that Walmart can add on to its already impressive financials. Amazon recently posted ad service revenue of over $14B in its Q4'23 earnings. It will be interesting to see how Walmart utilizes this ecosystem. PS: I realized the power of advertisement revenue while reading the book "Amazon Unbound". In one of the chapters, while discussing the financials of marketplace, Jeff Bezos asked his leaders to break out the financials of advertisement from the financials of marketplace. No surprises for guessing how the margins looked like for both the business streams. PPS: I have Vizio in my home and will be on the lookout for changes in the ads!

Shopping carts overflowing and aisles buzzing.. Walmart's latest move has set the retail world alight. The announcement? A bold $2.3 billion cash acquisition of smart TV giant Vizio. Boasting over 18 million accounts and offering free ad-supported channels, Vizio TVs present an untapped goldmine for Walmart. And with its ad business already raking in $2.7 billion annually, Walmart aims to supercharge its revenue streams, leveraging Vizio's platform to target consumers in new and lucrative ways. This isn't just about TVs and groceries; it's a strategic shift into the high-stakes game of targeted advertising. Walmart, known for its low-margin grocery sales, is flipping the script, using its vast treasure trove of shopper data to infiltrate the advertising big leagues dominated by tech titans like Amazon and Google. The Inside Scoop: This deal could be a direct response to Amazon's $47 billion ad success last year, surpassing YouTube's revenue. Not just that, Amazon recently partnered with Panasonic for ad-based Fire TV sets. Instacart teamed up with Roku to gauge TV ad influence on purchases. Kroger used its shopping data to test targeted Hulu ads, like Pepsi promos for soda fans. Why it matters? In a world where data is king, Walmart is staking its claim as the ultimate retail powerhouse, blurring the lines between shopping and advertising. As competitors scramble to follow suit, the battleground moves from screens to store shelves, ushering in a new era where every aisle and every TV screen becomes prime real estate for the advertising war of the future. GlobalData analysis from the Patent Analytics tool shows the patent landscape in Internet advertising in the Retail sector. ⚡ Ready to revolutionize the future of retail and entertainment? 🚀 Eager for further partnership insights and interested in understanding how these collaborations are reshaping the consumer landscape? Connect with us today to explore the endless possibilities and propel your business forward! 📧 [email protected] or ☎ explore more at our contact page: https://lnkd.in/deGad__f. Elevate your insights and propel your success today! #walmart  #shopping  #consumers  #tv  #amazon  #google  #retail  #patent

Don't put all your eggs in one basket! While Amazon is a major player, it's not the only game in town. Reach a massive audience with lower advertising fees than Amazon on Walmart Marketplace! 90% of Americans shop at Walmart - that's a huge opportunity to get your brand noticed among loyal customers. Plus, with less competition, Walmart offers a chance to stand out. Thrilled to announce I'm officially Walmart Certified through Walmart Connect, and I'm confident this is the next big platform for advertisers. #WalmartAdvertising  #MultiChannelMarketing  #WalmartConnect #Teikametrics