Key Highlights
- As per a news release, Walmart partnered with Commerce IQ, a provider of e-commerce management solutions.
- This partnership brings new automated capabilities to the retail media advertising platform and offers customers new features, including tailored optimization tools; strategy builders that drive actions based on desired campaign results; and self-service reporting.
- These intend to increase sales growth and brand share of voice. Walmart continues to grow its Connect unit in a crowded retail media landscape.
Walmart integrated with CommerceIQ to bring new automated capabilities to its retail media advertising platform. CommerceIQ is a provider of e-commerce management solutions. This integration of Walmart and CommerceIQ provides customers with more tools for managing their retail media campaigns and gathering insights into results beyond return on advertising spend.
Benefits of Partnership
The new offerings post the integration include a focus on automation and self-service capabilities that tend to be cheaper and easier to modulate than managed campaign services and align with how other digital ad networks have scaled.
The partnership with CommerceIQ allows flexibility which means brands can bring their agencies, managed services, and self-service software to the table.
Automation has played a major role for Connect as Walmart plans to grow the US business into a top 10 advertising network. Recently, Walmart added a customer data-sharing operation with Dunnhumby, known as Walmart Luminate, that supports the DSP.
Approximately half of Walmart’s ad sales in the fourth quarter came from automated channels. The global advertising operations of Walmart generated $2.1 billion in 2021 and grew 30% year-on-year in the most recent quarter. Luminate has seen 75% growth over the prior period in Q2 2022.
Based on troves of shopper data derived from its extensive brick-and-mortar footprint and online retail properties, Walmart has been able to build a formidable ads business. The company estimates that 90% of US households shop with Walmart every year, making it the No.1 grocer and No. 2 e-commerce destination behind Amazon.
Amazon continues to be the most formidable rival in the retail media race, generating tens of billions in revenue annually vs. Walmart’s $2.1 billion. But Walmart is also contending with an expanding crop of competitors from the traditional retail field.
CommerceIQ has closed a $115 million late-stage funding round, pushing its valuation past $1 billion amid an influx of investment into e-commerce startups. Over 2,200 brands use CommerceIQ’s platform daily.
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