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A more accessible and expansive Walmart+ membership will help the retailer to reach 29 million subscribers this year, while in-store retail media formats could boost ad revenues. A push into B2B, logistics, and international markets may also prove lucrative.

This year鈥檚 Groceryshop 2023 event in Las Vegas focused on marrying in-store and digital experiences, the growing retail media wave, and the benefits of personalizing messaging based on each consumer鈥檚 motivations, among many other takeaways. All of that comes as US food and beverage retail sales are expected to reach $1.378 trillion this year and surpass $1.578 trillion in 2026, according to our June forecast.

Walmart is taking a page from Amazon: The retailer looks to diversify its revenue streams by growing its ecommerce, retail media, and services businesses.

The US ad market grew for the first time in 11 months this May, according to Standard Media鈥檚 US Ad Market Tracker. Now the question is if expansion can continue. June and the start of July brought a host of ad updates that could help continued growth, including ad tools enhancements from Google and Microsoft, retail media opportunities from Roku and Uber, and more. Here鈥檚 a breakdown of what鈥檚 new.

The deal would not only give Kroger more power to negotiate with suppliers and (in theory) deliver lower prices for shoppers, but also create a much larger retail media network with a reach of roughly 85 million households鈥攏ot to mention access to a huge trove of customer data. Zoom out: Kroger鈥檚 Q2 results underscore the broader price sensitivity underpinning consumers鈥� grocery choices.

On today's podcast episode, we discuss the main ways the shopper journey is evolving, how retail media is shifting to encompass the full funnel, and how in-store retail media can help bring a brand's shopping message to life, particularly during holidays and events. Tune in to the discussion with our analyst Sarah Marzano and Nikhil Sharma, senior director of performance and insights at Roundel.

Retail media search is a new performance ad play. D2C brands will need to become adept at the cost-effective buying of sponsored product ads on retail media networks (RMNs) as they look to retailers and marketplaces for sales growth.

In the decade since, its share has dropped to 10.2% as advertisers rely increasingly on private marketplaces and direct platforms such as social media channels and retail media networks. As they refocused strategies around first-party data, programmatic advertisers invested more in closed and private ecosystems, which reduce hidden fees, minimize the risk of data leakage, and lessen carbon usage. 3.

Programmatic advertising will account for 91.3% of US digital display ad spend this year, or a total of $157.35 billion, per our December 2023 forecast. Last week, advertisers at Programmatic I/O discussed where those ad dollars are headed and how programmatic advertising is changing. From ad spend waste to the expansion of retail media, here are three big trends discussed at the event.

Retail media has transitioned from its 1.0 era, defined by on-site search and sponsored product ads, into the era of retail media 2.0, which consists of a mosaic of ads on-site, in-store, and across other media channels. 鈥淭he opportunity gets much bigger, but realizing the opportunity also gets a lot more complex,鈥� our analyst Andrew Lipsman said on 鈥淏ehind the Numbers: Reimagining 搁别迟补颈濒.鈥�

Retail media鈥檚 rise in popularity is being boosted by increasing ecommerce sales, a wide variety of ad formats, and established retailer-brand relationships. But an increasingly crowded space may have advertisers feeling overwhelmed, which could put a bit of strain on retail media鈥檚 growth.

Retail media networks looking to secure CPG ad dollars need to consider off-site formats too, like social media or connected TV (CTV), as evidenced by the Path to Purchase Institute鈥檚 April survey of ad agency professionals worldwide. 5. Amazon Prime Day patterns are shifting in favor of CPG.

Targeted, relevant advertising that motivates shoppers to buy is the goal of any retail marketer. But with retail media advertising sitting so close to the point of purchase, the potential upside is even greater.

Target: For announcing a paid membership to rival Walmart+ and Amazon Prime and rolling out a new in-house ad buying program for its retail media network. 5. Kohl鈥檚: For enlarging its home assortment by 40% to better meet consumer needs. 6. Lowe's: For beta testing Google鈥檚 new retail media product and experimenting with Apple鈥檚 Vision Pro. 7.

No. 5: Consider Meta shopping ads and retail media for commerce. There鈥檚 no exact alternative for marketers who use TikTok for social commerce, but Meta and retail media networks offer access to broad shopper and buyer audiences. Meta has a robust base of social buyers.

Retail media will make huge gains this year in Canada. Our first-ever forecast for retail media ad spending in Canada and our joint survey of ad buyers (conducted with IAB Canada) highlight the latest developments.

CTV鈥檚 partnerships with retail media networks. This is one area where CTV can be supercharged with fresh, relevant data鈥攁lthough the measurement issue persists. Both CTV and retail media face measurement and standardization issues, and as more partnerships emerge, the need for better measurement will grow. Outcome: Incorrect. This was originally featured in the eMarketer Daily newsletter.

Microsoft launched its Microsoft Advertising Network, which helps retailers set up retail media networks. And it introduced CTV and video ads within its ad platform, which will be a good way for it to leverage first-party data in a rapidly growing ad market. The company is enhancing audience targeting through its Microsoft Advertising Editor.

Some 53% of marketers believe AI will significantly enhance the way shoppers are targeted and served relevant ads, per a survey from Cooler Screens. Both AI and retail media are still developing. As both of these areas mature, AI will make retail media data even more powerful. Here are some ways AI is improving retail media.

This year, we forecast that Walmart鈥檚 digital ad revenue growth will outpace Google, Meta, and even Amazon. This success is driven by updates made to Walmart鈥檚 retail media platform as well as partnerships to help advertisers activate across channels like social and connected TV. 鈥淵ou know [how they say] crawl, walk, run? We鈥檙e getting to that walk/run phase now where our platform is maturing,鈥� said Rich Lehrfeld, senior vice president and general manager at Walmart Connect.

Leverage first-party purchase data by advertising with retail media networks or publishers with retail media partnerships. Look to native advertising to integrate messaging with content. Work with influencers to reach audiences that opt in to seeing their content. This was originally featured in the 蘑菇AV Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.

Cost: While other grocers are leaning into retail media partnerships with media companies, Trader Joe鈥檚 is riding solo. By offering mostly private labels, the company misses out on building its own retail media network. Takeaway: Building a strong brand that customers are excited to champion is an investment that can pay off when it comes to marketing campaign costs.

CTV has verified user data because users are logged in, but other first-party data sources like partnerships with retail media networks can help platforms provide more targeted advertisements in order to make their live sports inventory stand out. Coming in at No. 1 is cross-platform measurement, per the IAB.