retail

Retailers Continue to Realize Media Potential

What you thought was a retailer has become an ad platform
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Francis Scialabba

· less than 3 min read

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Ta-da: What you thought was a retailer has become an ad platform right before your very eyes!

That’s the trick several retailers have pulled off over the last few years, further monetizing their massive audiences.

Just yesterday, Walmart announced three new ad tech partners, which will nearly double the number of advertisers on its platform overnight. That’s on top of the growth it saw last year, when sponsored search ads skyrocketed 185% year over year and it multiplied its advertiser base 10x.

It’s a trend

Last week, Macy’s said the media network it launched in August had already hauled in more than $35 million. Home Depot, Kroger, CVS and Walgreens each has its own media platform too, but they haven’t disclosed revenue. Neither has Walmart, although Morgan Stanley estimates it brings in ~$500 million.

That’s...cute. Amazon racked in $13.18 billion in e-commerce search ad revenues in 2020, per an eMarketer report from Insider Intelligence.

Big picture: Advertisers want access to first-party shopping data, and big box retailers are lining up to provide it. But as with their e-comm platforms, they’ll face stiff competition for business.

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