Walmart’s new move pushes the boundaries for CTV advertisers
Published: March 22, 2023
Walmart Connect has recently partnered with Innovid to assist advertisers on Walmart's demand-side platform in delivering more personalized and interactive ad creatives for connected TVs.
The agreement combines Innovid's Dynamic Creative Optimization (DCO) solution with Walmart's DSP, a platform built on Trade Desk technology. DCO uses AI to better customize CTV messages in real time to be more appealing and engaging.
The deal allows Innovid to target and deliver personalized creative to shoppers on connected TV networks using data from the retail giant.
For Innovid clients who already use the Walmart DSP, the integrated features are now available.
The collaboration will improve the relevance and effectiveness of CTV ad creative while also providing independent ad serving to ensure the best possible quality and consumer experience across all devices.
SVP of global enterprise development at Innovid
Walmart has the limitation that it does not collect purchase data on nearly all transactions through a loyalty programme like other retailers such as Kroger do. However, Walmart's rapidly expanding e-commerce business is generating a growing pool of customer data.
It is also noted that, in recent months, CPG brands have increased their spending on both retail media and CTV. However, as the players on CPG ground don’t sell products directly to customers, they have a limited ability to shape the appropriate targeting based on purchase behavior. But Walmart’s new move fills the gap and provides more insights for them.
Kroger Precision Marketing launched its retail data marketplace last year for use in connected TV purchases via several DSPs. Roundel has taken similar steps.
But Walmart Connect’s offering is different. Walmart keeps its first-party data customizable, unlike others, in its DSP platform for advertisers.
What does the Walmart-Innovid partnership mean for advertisers?
Money has been rapidly migrating to CTV advertising in recent years as CTV viewership has reached greater heights. It in turn fuels different forms of integration and collaboration in this landscape in a race to make more marketing dollars.
Recently, Best Buy has teamed up with Roku, which allows the electronics retailer’s first-party data access to Roku. As we already mentioned, first-party data access is nothing less than a goldmine for advertisers. It will help them with personalized ad targeting, data-driven campaign optimization, and staying privacy-compliant while making marketing efforts.
And now comes the Walmart-Innovid partnership.
We believe that CPG advertisers will be the primary beneficiaries of this move. In an uncertain economic environment, they already have a hard time tackling consumer product price hike. Given their investment in CTV advertising and average CTV ad costs, it is understandable that they are under intense pressure to reap a better ROI.
The plethora of insights the new partnership provides for CPG advertisers will possibly pave the way to reshaping their marketing strategy.
Key advantages of Walmart’s move for advertisers are:
Ability to Customize Data Segments:
While Walmart’s rivals also make a similar move of giving access to first-party data, it is all the pre-set segments that advertisers can avail. Whereas, since Walmart allows its first-party data to be customizable in their DSP platform, it is going to be tremendously helpful for advertisers. Because the capability helps them filter and target only the highest-value audience segments. As a result, they will be able to improve the campaign's performance and ROI.
Data-driven content optimization:
With Innovid’s DCO in place, advertisers will be able to optimize the content quickly and automatically for each customer in real time. This way, advertisers can deliver the most effective message and design that are likely to influence their target audience. It will possibly lead advertisers to get improved engagement rates and better results with ad campaigns.
In short, Walmart’s new move strives to pave the way for advertisers to see a return for every penny they put into CTV advertising via its ad platform.
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