Advertisers appear to be shifting their spending focus more towards retail giants Walmart and Amazon while spending less in television, which traditionally served as the most popular advertising platform. This move could be attributed to various factors such as the rise of online shopping, which has grown substantially over the years, particularly in the wake of the COVID-19 pandemic. Retail platforms like Amazon and Walmart offer targeted advertising opportunities that traditional television cannot match. Furthermore, by advertising on these platforms, brands can directly link their promotions to a point of purchase, thereby increasing their chances of sales conversions.
Additionally, the decline in the number of people watching linear television and the decreasing effectiveness of TV ads may be further driving ad spend away from TV to these retail platforms. Retail media networks like Walmart Connect and Amazon Advertising offer granular data about their customers, which advertisers can use to target their ads more effectively. Also, the current boom in ecommerce has resulted in a surge of digital consumer data, which these two platforms, along with others like Instacart and Target, are capitalizing on.
Thus, advertisers are likely to continue investing more in retail media networks as they offer better conversion odds, sharper targeting, and a cost-effective option compared to traditional television advertising.
Advertisers boost spending at retailers such as Walmart and Amazon as TV shrinks
Advertisers appear to be shifting their spending focus more towards retail giants Walmart and Amazon while spending less in television, which traditionally served as the most popular advertising platform. This move could be attributed to various factors such as the rise of online shopping, which has grown substantially over the years, particularly in the wake of the COVID-19 pandemic. Retail platforms like Amazon and Walmart offer targeted advertising opportunities that traditional television cannot match. Furthermore, by advertising on these platforms, brands can directly link their promotions to a point of purchase, thereby increasing their chances of sales conversions.
Additionally, the decline in the number of people watching linear television and the decreasing effectiveness of TV ads may be further driving ad spend away from TV to these retail platforms. Retail media networks like Walmart Connect and Amazon Advertising offer granular data about their customers, which advertisers can use to target their ads more effectively. Also, the current boom in ecommerce has resulted in a surge of digital consumer data, which these two platforms, along with others like Instacart and Target, are capitalizing on.
Thus, advertisers are likely to continue investing more in retail media networks as they offer better conversion odds, sharper targeting, and a cost-effective option compared to traditional television advertising.
