Incrementum Digital’s Post

Who dares to show how many Sponsored Products? A ranking of 9 US Retail Media Networks:   Once again we see Amazon and Walmart in the lead. While others seem to be very cautious with in-grid sponsored products and show 5 or less, Amazon and Walmart go all in.   Size matters:  More ad inventory, more paid clicks, lower CPC, and better ROAS will attract ad budgets. For example, Lowes, with only 3 sponsored products, needs a CPC of almost 4x Walmart's CPC to bring in the same money, or, from a different perspective, needs brands that accept only 1/4 the ROAS to invest.   Relevancy is the driver: Amazon and Walmart have solved for relevancy and can play the game, while others feel insecure and rather shy away from effectively monetizing their websites.   Curious about the full report? Comment below to get the detailed analysis of all 9 RMNs and their Sponsored Products strategies!

2023's Missed Retail Media Opportunity:  How much $$$ did Walmart, Target, etc. leave on the table? Amazon's US advertising revenues hit an impressive 13.8% of their e-commerce revenues in 2023. Applying this ratio to Amazon's U.S. competitors reveals a staggering $31.8 billion opportunity that they missed out on. The primary reason for this gap? Sponsored Products, which account for 75% of Amazon's advertising revenue. Walmart has made remarkable progress in the past years - especially with Sponsored Products. They have solved the relevancy issue and now assign about the same ad inventory to paid product ads as Amazon. Walmart is really the only player that is truly challenging Amazon. The other RMNs have a long way to go, unless they figure out Sponsored Products. CTV, Off-site or in-store alone will just not cut it. There’s no chance to keep up with Amazon without making a 5%+ of the E-commerce revenue through “Search”/Sponsored Products. Here's how retailers can spin the flywheel to crack the Sponsored products problem: 1️⃣ Better relevancy generates more paid clicks and better advertiser ROAS 2️⃣ Better advertiser ROAS leads to more competition, higher CPCs, and better ad fill-rates 3️⃣ Inventory expansion creates more clicks and improves advertiser ROI Our mission at Crealytics is to help the biggest RMNs capitalize on Sponsored Products and close the gap to Amazon. We want to see a diverse, consumer-friendly e-commerce landscape in the future. #amazonadvertising #RetailMedia #walmartconnect #roundel

"It's a tiny portion of someone's role my team or it's not managed at all" We often get this response when talking about #TargetProductAds (TPA) management with brands. I can appreciate that resources are not infinite but there is data to show it may be time for a change. For those unfamiliar, this is the sponsored ads program on Target's website that allows for brands to advertise their products in a cost-per-click environment. Target reported earnings and some digital metrics jumped out at me. 🔸 Same Day Services was >10% of total sales, up again in Q4 '23. Why does this matter? These sales are often seen as in store driven but the digital ecosystem is where the sale was transacted. This is drive up, #Shipt and in-store pickup. These are on top of .com sales that are shipped directly to home. 🔸 "Other Revenue" which contains advertising revenue, was $452M in Q4 '23. Up 10% from the previous year. Brands are starting to see the value. Note - this is a similar sentiment we see for #BestBuyAds, #CostcoMedia, etc. Best Buy reported online revenue mix of 38% for Q4 '23. All of these consumers could be influenced by an ad for cheap. We've managed almost $2M (and growing) across these platforms. This is on top of the $150M we will manage annually on #Amazon. We want to help you make it a priority.

Are you struggling to keep up with Amazon and Walmart Connect's advertising metrics? Looking for solutions to optimize your ad spend and ACOS efficiently? Possible solutions: - Monitor CPC rates regularly - Implement seasonal promotions strategically - Analyze ad spend allocation and adjust accordingly - Focus on Health & Household, Home & Kitchen, and Patio & Garden categories What other strategies have you found effective in tackling e-commerce giants like Amazon and Walmart Connect?

Retail media ad spend in 2024 is forecasted to reach nearly $60B—continuing to grow at least 21% YoY through 2027—making “retail media the fastest growing ad spending channel in all of media.” In this article, we take a look at Amazon trends from the past 12 months and ask experts for their #Amazon and #retailmedia predictions for the rest of 2024. https://lnkd.in/g3cesapJ

Walmart isn't just about great deals and endless aisles – their advertising game is pretty intriguing too! 🛒💡 Let's dive into some unknown facts that'll make you go, "Whoa, really?!" 😲 So picture this: back in the day, Walmart used to have a first-price auction model. That meant that a $1 bid resulted in a $1 CPC. 🤯 Aligning with Amazon's fixed bid model. But please prepare yourselves for an intriguing revelation because Walmart gave it a twist – ever heard of the second-price auction model? Aka, dynamic bidding down only? It's a game-changer! This is currently how Walmart operates! The second price auction model will guarantee you a lower CPC than your actual bid, plus at btr media is our go-to dynamic bidding strategy for long-term profitability on the Amazon side. Another interesting fact 👇🏼 Walmart's base bids are a bit higher than you might expect. For Sponsored Products ads, the minimum starting bid is $0.20 for auto campaigns and $0.30 for manual targeting campaigns. Compare that to Amazon's sponsored ad campaigns, where the minimum bid is just 2 dimes on Sponsored Products! 🤑 So, whether you're navigating Walmart's or Amazon's digital aisles, knowing these little things can set you up the foundation of a successful strategy. What other surprising insights have you uncovered? Side question: How many units do you estimate this brand is selling from Walmart on top of that? #amazonmexico #amazonppc #walmartads #mercadolibre #walmartppc #adcenter #amazonads

Is your brand #RetailReady on Walmart.com? Check out my colleague Aja Ward in Flywheel’s latest video series as she gives very detailed and practical advice on leveraging SEO & SEM to create the most effective “flywheel” effect for organic rank! #retailmedia #seo #sem

Organic optimization: the unsung hero of Retail Media. But don't take it from me, listen to the insightful advice from Aja Ward on the first episode of Retail Ready! https://lnkd.in/dkN5fX-f

#Amazon is grabbing a larger piece of online sales dollars as well as the growing #retailmedia business. There are studies which show that ads on Amazon drive online sales at retail stores. Even with all their investment, #Walmart and #Target are distant number 2 and 3 in this space. Where does that leave players in #ecommerce " thanks Deepak Pant for this summary and link to my specific segment on NPR #marketplace last night: https://lnkd.in/e3t3-YEN

following up to my post about shopper marketing I think the street is not appreciating the subtle changes at amazons ad biz there was lots of head scratching at amazon being the partnership pintrest had announced as opposed to google. the combination of amazon announcing a 2.99 ad tier combined with this suggests to me some profound changes at amazon 1) per the note i referenced, amazons ad biz is part of the retail flywheel. it drives the 1p, 3p and with video ads, the subscriber flywheel. Wall Street analysts still don’t seem to get this even though it is pretty obvious based my conversations within the channel for 5 years 2) IF ads were viewed as its own business, sponsored search would be close to 85 percent EBIT margin. I have heard multiple sellside analysts say it is an 85 percent margin biz. That is just wrong. 3) sponsored product results load has gone up profoundly if you look at the ratio of how i estimate 3p gmv (i could be wrong but is at least 30 percent take rate relative to amazons last disclosure) - if not higher at FBA as a percent of the mix continues to increase. since the ad biz ramped in 2016 on if you look at that ratio it goes up. I don’t know the right maximum ad load but you hear about sellers complaints bc the cost of doing biz on amazon - 3p fees plus ads keeps increasing. 3) retail margins in the us - not as easy to unpack, but if you look at the fx impact to their ad biz, is mostly us us is probably 2-3 percent maximum. 4) while all the video investment (hard to quantify as it drives the prime sub fly wheel) maybe 20-30 percent - we don’t know but doesn’t matter to this point - lower than 85 percent but accretes margin 5) off amazon partnerships like pintrest and now snap maybe even lower but also doesn’t matter - lower than 85 percent but accretes to margin. 6) what wall street should appreciate is that everything amazon is doing in their ad biz is accretive to north america margins and all of this is negative for google. like my last post - i don’t need to disclose my investments but i am long amazon.