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鈥淸奥补濒尘补谤迟 has the] largest customer base of physical store grocery shoppers. I just think that when it comes down to brass tacks, it鈥檚 that very simple advantage of just having a large customer base and a large brick-and-mortar footprint.鈥�. But other retailers are trying to cash in on the surge in click-and-collect buyers.

Amazon will account for nearly all of the $29.69 billion US retail media search ad spend this year, though Walmart and Instacart are also contributing to retail media鈥檚 share of search ad spend, per our forecast. 3. In-store retail media presents a giant opportunity.

鈥淵ou have a place [in the event period], especially if you鈥檙e Walmart or Target.鈥�. Listen to the full podcast. This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.

The two fastest-growing digital ad business this year, Instacart and Walmart, will be RMNs. While some companies might not have the scale to launch their own networks, there may still be room for them to play in the retail media ad space. 鈥淲hen we look at the top-line numbers of the retail media space, they are shaped largely by Amazon and 奥补濒尘补谤迟,鈥� said our analyst Max Willens.

Shopper discretion advised: Walmart and Target both saw pullback in less need-to-have areas but more spending in categories where they provide shoppers value. At Walmart, shoppers focused on groceries and other essentials. Sam鈥檚 Club same-store sales rose 12.2% from value-seeking consumers. But margins were slim as customers avoided big-ticket purchases.

It鈥檚 not the only retailer looking to force concessions: Walmart is prepared to reallocate space to private or tertiary labels if suppliers are unwilling or unable to keep prices down, CEO Doug McMillon said at the 鈥嬧�婱organ Stanley Global Consumer & Retail Conference in December.

Player: Walmart. Walmart Connect is putting Sponsored Videos in search results. These video ads are an opportunity for visual storytelling within a retail media format. Player: Pinterest. Pinterest is offering more ad formats. The shoppable social platform now offers more ads in its home feed, contextual ads, and interactive quizzes. This was originally featured in the eMarketer Daily newsletter.

That will likely hinder retailers鈥� long-term investments and slow retail sales, which is why retail companies across several categories鈥攊ncluding Home Depot, Walmart, Dollar General, and Steve Madden鈥攔ecently offered cautious guidance.

That鈥檚 not to mention the vast number of well-established platforms such as Amazon, Walmart, and AliExpress. Online marketplaces create new challenges. For example, differing customer service experiences between the retailer and third-party sellers can leave shoppers frustrated, while several marketplace operators including Walmart and Amazon have had to deal with sellers hawking counterfeit items.

I know Walmart Connect just made some announcements specific to supporting non-endemic brands. Right? Sarah Marzano (03:22):. Yeah. So I think there's a couple trends going on in retail media that are sort of adding fuel to the appetite for non-endemic.

Mass merchandisers (Walmart, Target, Best Buy). Discount warehouses (Costco Wholesale). Grocers (The Kroger Co.). Department stores (Macy鈥檚). Category specialists (The Home Depot). Delivery services that support retailers (Instacart). Retail media鈥檚 scope is expanding as networks move further into video and CTV.

The Netflix Hub, which began in 2021 as a digital storefront on Walmart鈥檚 website, has evolved to become a physical presence at over 2,400 Walmart stores across the US. Netflix has also partnered with Athletic Brewing Company to create a line of nonalcoholic beers, the first of which was inspired by Netflix鈥檚 鈥淭he Witcher.鈥�.

Several retailers, including Amazon and Walmart, launched high-profile sales in October that pulled the start of the holiday shopping season into mid-October. While those events may not have delivered blockbuster results, they let retailers clear inventory and helped drive a 7.2% YoY increase in sales across October and November, per US Commerce Department data. Discounts were steep.

For example, Walmart recently added curbside returns and returns pickup from home to its offerings, as well as extended its returns policy through January 31, 2023. And a growing number of retailers are working with third-party dropoff retail ecommerce return vendors such as PayPal-owned Happy Returns.

Most crucially, Amazon Prime Video reported it will introduce ads in 2024, Walmart and NBCU announced a partnership, Roku inked a deal with Best Buy, and Kroger linked up with Disney. CTV ad spending will be nearly twice what we expected for 2025.

It鈥檚 also unclear how competitor events from Walmart and Target fared.

Online shoppers often turn to Amazon and Walmart.com to start their shopping journeys online, per Jungle Scout data from Q3 2023. To take advantage, both retailers have revamped their website and apps to surface more new products and be more easily searchable.

Walmart, however, has doubled down on private label, assuring consumers it won鈥檛 raise prices. Walmart had a strong holiday season but posted a cautious outlook for 2023.

Lessons from Walmart, Coca-Cola on what makes an engaging holiday ad.

Amazon鈥檚 inability to take full advantage in the grocery space gives Walmart and other digital grocery players a chance to gain ecommerce market share in the category. It will remain difficult for competing retailers to capitalize on Amazon鈥檚 stagnant overall ecommerce market share. Outside of food and beverage, the only other maturing ecommerce category where Amazon is missing out is auto and parts.

But many retailers, including Walmart and Ulta, have begun to jump on board, enticed by the potential to increase revenues. 鈥淩etailers are actually quicker to move than the brand side sometimes,鈥� said Nickell.

Whether that will be enough to gain ground against Walmart will depend on how quickly Amazon can scale its new Fresh format and how effectively it can win over value-focused consumers.

Still, the lure of lower advertising costs at competitors like Walmart and Instacart isn鈥檛 moving the needle much on Amazon鈥檚 overall share of retail media spending. The retailer will account for nearly three-quarters (74.2%) of US retail media ad revenues this year, helped by its push into ad-supported streaming. Go further: Interested in assessing more Amazon advertising metrics?

Amazon plans to double the number of same-day facilities over the next few years to capitalize on the opportunity, as well as maintain an edge over rivals like Walmart and Target, that are making similar moves.