Walmart Connect Directly Pitches Brands Ahead Of Holiday Season
Walmart Connect is approaching brands directly to offer on-site brand lift studies, bypassing agencies, as it competes for ad dollars. This move aims to prove the effectiveness of its retail media network.
Original reporting · digiday.com
Original: “Walmart Connect pitches brands directly as it pushes lift studies ahead of holiday ad deals”
Read “Walmart Connect pitches brands directly as it pushes lift studies ahead of holiday ad…” at Digiday →
How this was written. GMS Agency Desk wrote this article with a language model from Digiday’s reporting (model: @cf/meta/llama-3.3-70b-instruct-fp8-fast); it describes that reporting rather than adding to it. The original, linked above, is the full story.
Key points from Digiday’s report
- Walmart Connect is directly approaching brands to offer on-site brand lift studies, bypassing agencies.
- The company's ability to prove incrementality could be a key differentiator, setting it apart from competitors like Amazon.
- Advertisers are expected to spend $69.33 billion on retail media by the end of the year, with scrutiny around return on investment increasing.
- Incrementality tests can be helpful but come with trade-offs, including cost and time-consuming production.
- Walmart's move marks a shift towards more direct conversations with brands, as it competes for ad dollars.
Walmart Connect is taking a direct approach to win over advertisers, bypassing agencies in the process. This strategy is part of its effort to dominate the retail media landscape. By directly pitching brands, Walmart Connect aims to increase its share of ad dollars.
The company's sales team has begun offering on-site brand lift studies to brand clients ahead of the holiday shopping season. These studies are designed to provide brands with specific insights into the performance of their Walmart spend. Three agency executives confirmed that their clients have been approached by Walmart Connect.
The move is significant, as it allows Walmart Connect to compete not just for media budgets, but also for conversations around measurement. This is particularly important in the fourth quarter, when chief financial officers and chief marketing officers scrutinize return on investment more closely. Lacie Edgeman, co-owner and managing director at PrograMetrix ad agency, noted that advertisers are less willing to fund spend they cannot defend during this period.
Walmart's study is an attempt to answer one of retail media's most pressing questions: whether a campaign drives incremental sales or simply takes credit for a purchase that would have happened anyway. The company's ability to prove incrementality could be a key differentiator, setting it apart from competitors like Amazon. If successful, this could unlock greater ad spend for Walmart Connect.
The lift studies are based on the amount spent by advertisers through Walmart Connect, with at least four of Mile Marker's clients participating. Anthony Costanzo, chief analytics officer at Mile Marker, confirmed that the studies were offered to clients based on their spend. While it is not unusual for retailers to offer tests and features directly to advertisers, this move marks a shift towards more direct conversations with brands.
Walmart's timing is strategic, as brands are finalizing their fourth-quarter spending and 2027 media budgets. The company reported a 38% increase in its global ad business for the second quarter of the year, making it one of the fastest-growing retail media networks. As advertisers spend more on retail media, expected to reach $69.33 billion by the end of the year, scrutiny around return on investment is increasing.
Incrementality tests, like the brand lift study, can be helpful but come with trade-offs. These tests can be costly and time-consuming, taking up to nine weeks to produce results. Additionally, advertisers lack direct access to set up and execute these studies independently, relying on retailers like Walmart to grade their own performance. This article is based on reporting by Digiday.
Questions and answers
What is Walmart Connect's goal with its direct approach to brands?
Walmart Connect aims to increase its share of ad dollars and prove the effectiveness of its retail media network.
What are the potential benefits of Walmart's brand lift study?
The study can provide brands with specific insights into the performance of their Walmart spend and help prove incrementality.
What are the challenges associated with incrementality tests?
These tests can be costly and time-consuming, and advertisers lack direct access to set up and execute them independently.
