Retailers tap shoppers’ data to sell more ads ahead of holidays

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CHICAGO, Nov 17 (Businesshala) – There’s much more than just merchandise for sale this holiday. There are shopkeepers too.

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Walmart, Amazon.com and other major retailers that stock data on shoppers’ purchases are selling more digital ads on their websites and in stores — including pop-up banners and search-bar keywords — than marketers can use for their purchases. Looking forward to pitching products. ,

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Retailers are looking to harness their insights on consumer behavior to attract advertising dollars from packaged goods makers such as Procter & Gamble (PG.N) and Kraft Heinz (KHC.O), at a time when companies need to convert online marketing to people. There are new challenges in targeting.

Walmart said Tuesday that sales in its advertising business grew nearly 240% in the third quarter on a two-year basis. “Advertising helps suppliers and marketplace providers sell more while creating a new profit opportunity for us,” said Chief Executive Officer Doug McMillan. Walmart’s revenue from advertising is growing not only in the United States, but also in its Mexican business and its Flipkart.com unit in India.

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Last week, US grocery chain Albertsons launched its own media network, Albertsons Media Collective. In October, The Kroger Company (KR.N) Kroger Precision Marketing – born out of the 2015 acquisition of a data analytics firm – launched a private advertising marketplace that is a tool to help brands purchase digital ad space more efficiently. will provide the equipment.

As other avenues of marketing are closing down, so does advertising.

Apple Inc (AAPL.O) rolled out privacy changes in April that prevent advertisers from tracking iPhone users without their consent. In 2023 Alphabet Inc. (GOOGL.O) will turn off Google Chrome web browser cookies, which save information about users’ browsing habits, help advertisers determine product interest.

In the meantime, retailers hope to entice manufacturers to buy ads on their websites and shopping apps. From Britain’s Tesco to US-based Target (TGT.N), retailers have been trying to carve their own niche in the media world for years. But now, rapidly growing e-commerce sales help them collect more potentially valuable data on buyer behavior.

ecommerce boom

To be sure, the only retailer that has come close to challenging the dominance of Facebook and Google is Amazon.com (AMZN.O), whose annual US advertising revenue has exceeded $15 billion. Businesshala revealed last year that Walmart was on track to generate nearly $1 billion in ad sales in 2020. That compares to the 2020 US ad sales of Facebook and Google, according to eMarketer, to about $40 billion.

Walmart is looking to expand its advertising business after more than a decade of stalemate. In August, the retailer upgraded its platform to give brands a demand-side platform that will help them purchase digital ad space more efficiently.

Eric Franchi, partner at MathCapital that invests in marketing and media startups, said nearly all of the top 10 retailers by sales worldwide, including Target and Home Depot (HD.N), have started advertising businesses, with more to follow. expected to do.

Target said its media business, Roundel, is an important part of its business and a driver of growth.

Brands spent 66% more on retail media during the 2020 holidays than a year earlier, according to Sky, a data company that works with brands that buy ads from Amazon, Walmart and Target.

Reporting by Richa Naidu, Sheela Dang and Aishwarya Venugopal; Editing by Vanessa O’Connell and Leslie Adler

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