Marketing
22 March 2023
Walmart extends retail media to CTV, in-store sales
Walmart DSP and Sam's Club are applying first-party data to enhance creative and measurement for advertisers.
(Photo courtesy of Sam's Club)
Walmart DSP and Sam's Club are applying first-party data to enhance creative and measurement for advertisers.
(Photo courtesy of Sam's Club)
At its core, retail media is designed to provide advertising within an ecommerce marketplace. But as this nascent area develops, it is quickly expanding beyond the retailer’s website.
This week, two entities under the Walmart Inc. umbrella announced new capabilities that illustrate where retail media can play a role in CTV and in-store sales.
Let’s take a look:
Advertising that appears on a website doesn’t only have the potential to drive online sales. It can also help to propel sales at stores.
A new capability announced this week by Sam’s Club is offering a way to measure across both channels.
The membership club announced that in-store sales can now be attributed to search ads that appear on its ecommerce site.
Sam’s Club said its Member Access Platform will use first-party data on member transactions to determine the revenue that is generated by particular search and sponsored product ads, including for purchases made in a store.
In media measurement, attribution is sought by advertisers as they seek to determine the effectiveness of a given ad or campaign, and where to direct spend in hopes of reaching more consumers. But if an ad in one place leads to a sale in another, it adds complexity to the task of assigning credit for a sale. That’s especially true of offline sales, since there is often less information on the behavior that leads up to the store-based purchase available.
“There’s a huge group of our members who see a search ad online or on their phone when shopping but purchase the product in-club. Previously, it was not possible for our advertisers to connect the in-club purchase to their online ads to know what drove sales,” said Tim Simmons, senior vice president and chief product officer, Sam’s Club, in a statement. “With our new attribution model, advertisers can understand what’s motivating purchases across all channels accurately, especially for search ads.”
With this addition, Sam’s Club said it can now offer “true closed-loop measurement” that crosses online and offline sales. The retailer said overall ROAS has increased by nearly 30% for advertisers that have added in-store sales attribution.
The new offering illustrates how digital commerce is driving both online and offline sales. Media must continue to evolve along with shopper behavior.
Alongside retail media, another fast-growing area of digital advertising is media that appears on streaming services, which is known as CTV (Connected TV). A new partnership shows there are opportunities for the first-party data that powers retail media to serve as a bridge between the store where they shop and the couch where they watch TV.
Walmart’s media arm will work with Innovid to make more personalized creative for CTV available for advertisers through the retailer’s demand side platform.
Innovid will provide “creative personalization, optimization and interactive experiences,” as well as offer ad delivery services.
The integration of Innovid’s Dynamic Creative Optimization technology is designed to improve “relevance and effectiveness” of CTV ad creative that is available on Walmart DSP, which is powered by The Trade Desk..
"Through Walmart DSP, marketers can more effectively reach Walmart's millions of customers across inventory, optimize their media spend, and connect with consumers on highly sought-after platforms like CTV and beyond," said Krista Panoff, SVP of global enterprise development at Innovid.
The partnership will allow advertisers to tap first-party data from Walmart, and apply it to campaigns that reach customers on channels and platforms beyond the retailer’s properties. Walmart DSP provides measurement that crosses both online and offline channels, the retailer added.
This is the second announcement in as many weeks that shows how first-party data from retail media can be applied to enhance CTV. Best Buy and Roku recently announced a partnership that will put the electronic retailer’s first-party data to work for targeting and measurement on Roku streaming devices.
As advertisers seek new ways to efficiently and effectively reach customers on a web that is moving beyond third-party tools and cookies, the partnerships underscore how retailers are in a prime position to provide the purchase-level data that can help to provide results.
Campbell Soup Company CEO Mark Clouse offered thoughts on messaging amid inflationary shifts in consumer behavior.
After months of elevated inflation and interest rate hikes that have the potential to cool demand, consumers are showing more signs of shifting behavior.
It’s showing up in retail sales data, but there’s also evidence in the observations of the brands responsible for grocery store staples.
The latest example came this week from Campbell Soup Company. CEO Mark Clouse told analysts that the consumer continues to be “resilient” despite continued price increases on food, but found that “consumers are beginning to feel that pressure” as time goes on.
This shows up in the categories they are buying. Overall, Clouse said Campbell sees a shift toward shelf-stable items, and away from more expensive prepared foods.
There is also change in when they make purchases. People are buying more at the beginning of the month. That’s because they are stretching paychecks as long as possible.
These shifts change how the company is communicating with consumers.
Clouse said the changes in behavior are an opportunity to “focus on value within our messaging without necessarily having to chase pricing all the way down.”
“No question that it's important that we protect affordability and that we make that relevant in the categories that we're in," Clouse said. "But I also think there's a lot of ways to frame value in different ways, right?”
A meal cooked with condensed soup may be cheaper than picking up a frozen item or ordering out. Consumers just need a reminder. Even within Campbell’s own portfolio, the company can elevate brands that have more value now, even if they may not always get the limelight.
The open question is whether the shift in behavior will begin to show up in the results of the companies that have raised prices. Campbell’s overall net sales grew 5% for the quarter ended April 30, while gross profit margins held steady around 30%. But the category-level results were more uneven. U.S. soup sales declined 11%, though the company said that was owed to comparisons with the quarter when supply chains reopened a year ago and expressed confidence that the category is seeing a longer-term resurgence as more people cook at home following the pandemic. Snacks, which includes Goldfish and Pepperidge Farm, were up 12% And while net sales increased overall, the amount of products people are buying is declining. Volumes were down 7%.
These are trends happening across the grocery store. Campbell is continuing to compete. It is leading with iconic brands, and a host of different ways to consume them. It is following that up with innovation that makes the products stand out. Then, it is driving home messaging that shows consumers how to fit the products into their lives, and even their tightening spending plans.
Campbell Soup is more than 150 years old, and has seen plenty of difficult economic environments. It is also a different business today, and will continue to evolve. At the end of the day, continued execution is what’s required.
“If it's good food, people are going to buy it, especially if it's a great value,” Clouse said.