Today, we’re speaking with Zainab Hussain, an experienced e-commerce strategist with a deep understanding of customer engagement and operations. We’re diving into Walmart Connect’s latest advancements, particularly their new Display Advertising API, and how it impacts the retail media landscape.
Can you elaborate on the new Display Advertising API that Walmart Connect has launched? What are the primary benefits of this API for advertisers? How does this API improve the performance of ad campaigns?The new Display Advertising API by Walmart Connect allows advertisers to integrate display ads through their preferred platforms more seamlessly. This API simplifies campaign management by providing direct access to performance reporting and optimization tools, which helps streamline the process for marketers. In terms of performance, the API has shown significant improvements in beta tests. When brands use both search and display ads together, the synergy boosts campaign effectiveness, leading to a higher likelihood of purchase and increased spending by customers.
In beta tests, what specific performance improvements did you observe? How do these improvements compare to previous ad campaigns without the new API?During beta testing with partners like Pacvue, Skai, and DataCaciques, we observed a substantial lift in performance. Customers exposed to both search and display ads were three times more likely to purchase products and spent around 40% more compared to those who saw only search ads. For instance, hardline products saw a 39% increase in incremental sales, and categories like entertainment, toys, and seasonal saw a 67% boost when using combined ad campaigns.
How do customers typically respond to seeing brand ads in both search and display channels? Are they more likely to purchase products? Do they tend to spend more on those items?Customers exposed to ads in both search and display channels exhibit higher purchase intent and increased spending. Specifically, they’re three times more likely to buy the advertised products and tend to spend about 40% more on those items. This dual-channel strategy effectively captures consumer attention and drives higher engagement.
What are some specific examples of incremental sales increases seen with combined search and display ad campaigns? How did hardline product campaigns perform? What about campaigns in the entertainment, toys, and seasonal category?Combined search and display ad campaigns have shown remarkable results. Hardline products experienced a 39% increase in incremental sales, while campaigns in the entertainment, toys, and seasonal categories saw a 67% boost. These figures highlight the effectiveness of leveraging multiple ad formats to enhance sales performance.
Can you explain the significance of allowing marketers to use their existing technology partners for campaign management through the new API? How does this benefit marketers in a fragmented retail media landscape?Allowing marketers to use their existing technology partners for campaign management through the API significantly reduces complexity. In today’s fragmented retail media landscape, advertisers often navigate multiple platforms, which can be cumbersome. The new API streamlines operations, making it easier for marketers to manage campaigns, access reporting, and optimize performance all within their established workflows.
How has Walmart Connect evolved over the past two years? What were the initial focus areas for the company? What features have been added to the tech stack?Over the past two years, Walmart Connect has evolved substantially. Initially focused on building a robust paid search platform, the company has since expanded its offerings to include self-service buying tools, campaign management APIs, and second-price auctions. The integration of offsite media through partnerships with social platforms and major media companies has also played a crucial role in this evolution, enabling a more comprehensive and integrated advertising solution.
What is the Walmart DSP, and how has it contributed to Walmart Connect’s offsite media business? How has integration with social platforms and major media companies influenced this growth?The Walmart DSP, developed in partnership with The Trade Desk, has significantly bolstered Walmart Connect’s offsite media capabilities. It allows advertisers to access connected TV (CTV) inventory and integrate with major social platforms. This integration has expanded Walmart’s advertising reach and targeting accuracy, driving growth by reaching a wider audience and utilizing closed-loop measurement to track effectiveness.
Can you discuss the role of onsite display ads in connecting the top and bottom of the sales funnel? Why has the middle of the funnel been underserved until now?Onsite display ads play a pivotal role in bridging the gap between the top and bottom of the sales funnel by addressing the consideration phase, which has historically been underserved. These ads engage consumers who are already browsing, nudging them toward a purchase decision, thus creating a more cohesive and effective customer journey.
How do cost-per-click ads fit into this strategy? What impact do they have on building sales and driving high-intent searches?Cost-per-click (CPC) ads are integral to this strategy as they drive high-intent searches by engaging potential buyers at critical points in their shopping journey. These ads help build sales incrementally by prompting users to click on products they are interested in, which often leads to higher conversion rates and more purposeful shopping actions.
What is a clean room environment, and why is Walmart Connect testing this with CPG clients? How does it provide deeper insights about audience segmentation and performance?A clean room is a secure data environment where brands can analyze granular data collaboratively without compromising privacy. Walmart Connect is testing this with CPG clients to offer more detailed insights into audience segmentation and campaign performance. This environment allows brands to answer specific questions that standard reporting metrics may not cover, enhancing their strategic decision-making.
How has the incorporation of CTV products affected Walmart Connect’s data complexity? What has been the demand for CTV from marketers like? Why are major food and consumable brands particularly interested in CTV?The inclusion of CTV products has introduced additional data complexity, but it has also created new opportunities for targeting and measurement. There has been strong demand from marketers, especially major food and consumable brands, who value the precision targeting and closed-loop measurement that CTV offers. These brands use shopping-based signals to fine-tune their CTV ad targeting, ensuring their messages reach the right audience.
What specific outcomes are you hoping to achieve with the convergence of CTV and retail media? How can CTV drive consideration to product detail pages? How does it attract new-to-brand buyers and drive return on ad spend?The convergence of CTV and retail media aims to drive more consideration to product detail pages, attract new-to-brand buyers, and enhance return on ad spend. By leveraging the detailed targeting and dynamic creative capabilities of CTV, we can capture the attention of potential customers and guide them toward specific products, increasing the likelihood of conversion and fostering brand loyalty.
Can you give examples of how Walmart has been testing and learning with brands in the CTV space? What partnerships and inventory sources have you utilized?Walmart has been actively testing and learning in the CTV space through partnerships with major media providers like NBCUniversal, Disney, and Paramount. By accessing their inventory through the Walmart DSP, we can experiment with various strategies and creatives to determine what drives the best results. This collaborative approach ensures that we continuously refine our tactics to maximize the impact of CTV campaigns.
Do you have any advice for our readers?My advice for readers is to embrace the evolving retail media landscape and leverage the latest technologies to stay competitive. Understand the importance of multi-channel strategies, and don’t be afraid to test and learn with new tools and platforms. This will enable you to reach your target audience more effectively and drive better business outcomes.
