Walmart is experimenting with video ads on Walmart.com, one of the new updates coming to its ads business that it overhauled with the launch of a demand side platform last year. Meanwhile, Walmart also is changing how it sells ads in online auctions, implementing a second-price model, which is a more transparent way to award the ad space, and something brands have requested.
Rich Lehrfeld, senior VP and general manager of Walmart Connect, announced the new features in a blog post today. Lehrfeld touched on the new video ads that would start popping up on Walmart.com before the end of the year; he also announced new measurement capabilities so marketers could analyze the effectiveness of their campaigns, and the expansion of the automated ad platform to more brands.
“We are making it faster, easier, and more efficient for brands to launch and manage display campaigns on Walmart.com all on their own,” Lehrfeld said in the blog post. “We recently rolled out Display Self-Serve to our first phase of advertisers, giving them more speed, flexibility and control with their display campaigns.”
Walmart is building out its retail advertising network, an online ad ecosystem that melds its data on 150 million shoppers with targeted ads, on and off its website. Last year, Walmart launched a demand side platform with The Trade Desk. In February, Walmart announced its ad revenue for the first time, which hit $2.1 billion in the fourth quarter of 2021, as the retail giant is competing in the growing retail media space. Amazon is considered one of the more sophisticated retail media and internet ad platforms, and a number of rivals are following suit.
“There is a lot of buzz on retail media, as you know,” Lehrfeld said in a recent phone interview, in which he outlined the updates to the platform. “It’s disrupting the ad industry.”