Walmart’s retail media network has established a significant lead in delivering advertising impressions compared to its U.S. peers, according to a report by Sensor Tower.

  • Performance Metrics:

    • Walmart achieved 11 billion impressions in Q1.
    • Target, the second-highest, generated fewer than 7 billion impressions.
    • Other top performers include Chewy, The Home Depot, and Kroger.

  • Onsite Media Dominance:

    • Walmart excelled in onsite media impressions, effectively monetizing its owned properties.
    • Retail media networks are increasingly exploring offsite media for additional revenue streams.

 

Dive Insight:

Sensor Tower's analysis highlights the top-performing retail media networks in the U.S., excluding Amazon, which dominates the category. Walmart's leading position reflects its status as the largest traditional retailer in the country and its significant investment in its retail media network, Walmart Connect.

  • Strategic Investments and Partnerships:

    • Walmart Connect has developed an extensive ad-tech infrastructure and formed data-sharing partnerships with platforms like TikTok and Disney.
    • These relationships enable Walmart to engage with nonendemic brands and deliver substantial ad impressions both onsite and offsite.

  • Market Trends and Predictions:

    • Offsite media is expected to drive growth in the retail media category as owned channels approach ad saturation limits.
    • Retail media networks across various sectors, such as pet supplies (Chewy), home improvement (The Home Depot), and beauty (Ulta and Sephora), achieved over 1 billion impressions in Q1.

  • Advertiser Focus:

    • Different industries employ distinct tactics based on their assets and target advertisers.
    • Kroger and Chewy, for instance, relied heavily on offsite impressions, while Target and Best Buy focused on onsite channels.
    • Personal care emerged as the leading advertiser category, generating nearly 4.5 billion impressions, benefiting networks like Ulta and Sephora.

  • Collaborative Success:

    • Deeper advertiser partnerships contributed significantly to performance. For example, Chewy’s co-branded ads with Purina PetCare resulted in over 900 million impressions.

 

Industry Outlook:

Retail media is currently the fastest-growing segment of digital marketing, benefiting from the decline of traditional ad-targeting methods like cookies. Despite its rapid growth during the pandemic, the momentum is starting to level off. Research by WARC predicts that retail media will experience 10.6% growth next year as trade budgets reach their limits.

 

Conclusion:

Walmart’s retail media network, Walmart Connect, has set a benchmark in the industry by leveraging strategic investments and partnerships to deliver high advertising impressions. As the sector continues to evolve, the focus on offsite media and deepening advertiser relationships will be crucial for sustaining growth and maintaining leadership in the competitive landscape of retail media networks.