The landscape of the retail media ecosystem is changing. Now, Advertisers are no longer just focusing on Amazon when investing in retail mediabut they are looking further and shifting their investments to other retailers such as: Walmart, Goal either instacart.
In an interview with DigiDay, Elisabeth Marsten, Vice President of Strategic Trading Services at Tinuiti Agencyemphasizes that conversations with advertisers are no longer just focused on Amazon. Advertising spending relative to other retailers is experiencing double-digit growth this yearand even exceeds Amazon’s advertising growth. Nevertheless, the company led by Andy Jassy continues to receive the lion’s share of the advertising budget for the time being.
The Trend towards more diversification It is not just limited to Tinuiti and its advertisers. Other agencies such as Macarta are expected to see retail media investment outside of the Amazon platform increase by 25% to 30% in 2024 compared to last year, while Markacy is estimated to see advertising investment in retail media increase by 20%. .
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«Retail Media has been synonymous with Amazon, but 2024 will likely be the year that connection begins to fade.«he comments in turn Jared Belsky, CEO of the digital agency Acadia. «The investment chips, at least from our customers, are starting to flow to Walmart, Instacart, Kroger, Chewy, Ulta and more“, he assures. In their case, they hope so Non-Amazon retail media advertising investment for the agency’s clients increases 13% this year with a fund of $100 million, compared to 7% last year.
In this context of change, it appears that Walmart is driving much of this growth. In Belsky’s words: Investment in Walmart increased 45% between the third and fourth quarters of 2023even exceeding the growth on Amazon for some advertisers: “WAlarm for Us grew 104% in 2023, Target grew 56%, and then the smaller retail media companies combined grew around 200%«.
The fact that Walmart is growing faster and positioning itself as a major player in retail media after Amazon is related to several factors, some of which stand out Walmart Connect ad prices can be up to 40% lower than Amazonas well as the opportunity to build strong business relationships as this investment not only generates revenue through Walmart Connect but also impacts the online review seller.
