Blurred background of a store with the words "Walmart Connect" next to an ad
Photo: iStock

Walmart is leveraging its massive audience and store footprint to bring its U.S. retail media network, Walmart Connect, to the next level with spots on in-store radio and demo stations during the weekends at select stores — as well as greater use of in-store screens, according to CNBC. Getting partner brands in front of customers in-store and even at checkout could maximize the outreach of their ads, but the retail giant will need to take care that its ads don’t create undue friction in the shopping experience.

The inside of a Walmart store itself may be the ultimate channel for brands that sell at the retailer. Walmart operates nearly 4,700 stores in the U.S., and about 90% of Americans live within 10 miles of one. In the U.S., about 139 million customers visit Walmart stores and its website or app each week.

“When you think about our store, our store footprint and the percentage of Americans that we reach through our stores, we can deliver Super Bowl-sized audiences every week,” Ryan Mayward, SVP of retail media sales for Walmart Connect told CNBC.

Walmart Connect will utilize existing in-store technology to deliver ads to that massive audience and further build out the potential of its network. For instance, the 170,000 digital screens across its U.S. footprint, including those TV aisles and self-checkout lanes, will begin playing relevant ads targeting the specific store or region later in 2023. Walmart will also offer 30-second in-store radio spots to its suppliers.

The tech-focused opportunities will be joined by a modern version of an old supermarket favorite: the free sample. Walmart will sell sampling stations to advertisers on weekends, including putting QR codes at demo tables to let shoppers bring up inspiration such as meal ideas. The company will also bundle these opportunities with other ad formats that can run at the same time for a better-rounded advertising campaign. Walmart has been testing the new demo stations in Dallas-Fort Worth and is planning to roll out the option to more than 1,000 stores by the end of the year.

Walmart isn’t just innovating in-store. This fall, the retailer will partner with NBCUniversal to test out retail media-powered ads within live sports streaming. Participating brands will be able to use Walmart Connect’s targeting and measurement tools to reach viewers during live sports programs.

Ads are an overall small part of Walmart’s revenue — at $2.7 billion in net sales, compared to total revenue of $611.3 billion for fiscal 2023 — but that share is growing fast. Walmart Connect’s ad business rose about 40% in Q1 2024, while the global ads business grew by 30%. In comparison, consolidated revenue was up 7.6% during the same period.

Retail Media Is Lucrative, but Not at the Cost of Experience

It’s not hard to see why Walmart is pushing retail media. The space grew from $1 billion to $30 billion annually in just five years and is expected to hit $45 billion in 2023, according to Insider Intelligence. However, retailers need to balance the potential of in-store advertising against the potential headache it could cause for shoppers.

Perhaps the first cautionary tale can be found at Walgreens, which had planned to install Cooler Screens’ digital screens in at least 2,500 stores. The initial results were promising, but in time there were reports of shoppers complaining about the electronic doors on social media, including expressing annoyance at the ads they played and claiming they displayed products that weren’t actually in stock. 

The issue came to a head in June, when Cooler Screens sued Walgreens for reportedly shutting down the rollout in a breach of contract, according to the Chicago Tribune. The suit claims that Walgreens CEO Roz Brewer “purportedly compar[ed] the screens to ‘Vegas’ in a derogatory way” during a store visit.

Walgreens has disputed Cooler Screens’ claims and holds that it terminated the contract based on a “failure to perform,” according to CNBC.

However, Walmart’s Mayward noted that the company has been adding more advertising “in a very deliberate and cautious way” based on what it learned from how shoppers respond to online ads. A measured approach could prove to be very profitable for the retailer and its brand partners alike.

BrainTrust

“Walmart has hundreds of millions of visits each week. That’s a lot of eyeballs for brands to get in front of. So, there is scope to become more creative about advertising.”

Neil Saunders

Managing Director, GlobalData


“If anything, even average content will create awareness of new products and new usage occasions that have value and likely elevate the experience.”

Susan O’Neal

General Manager, Promo Intel & Insights, Numerator


“Advertising throughout the store to influence purchase decisions makes perfect sense…Advertising at self-checkout is too late in the shopping journey in my opinion.”

David Naumann

Marketing Strategy Lead – Retail, Travel & Distribution, Verizon

Discussion Questions

DISCUSSION QUESTIONS: Could Walmart overstep the comfort and convenience of its shoppers with the rollout of advertisements to self-checkout and television aisles? Is the growth of retail media networks being fueled by the current economic uncertainty, or will they become a standard part of the retail playbook?

Poll

How would you feel about being served an ad at checkout?

View Results

Loading ... Loading …

Leave a Reply

10 responses to “Walmart Expands In-Store Media Network in a ‘Cautious Way’”

  1. Neil Saunders Avatar
    Neil Saunders

    Walmart has hundreds of millions of visits each week. That’s a lot of eyeballs for brands to get in front of. So, there is scope to become more creative about advertising in store. However, this needs to be done with care as too many ads can be intrusive and annoy shoppers, which is the last thing Walmart wants. Nevertheless, this is a big opportunity for Walmart which is still a minnow in retail media and advertising compared to Amazon which has almost 16x the revenue.

  2. Gene Detroyer Avatar
    Gene Detroyer

    Walmart’s first experience with dynamic in-store media dates back to the ’80s. They have continued with various forms and iterations since then. Research showed that retail media within the shopping geography drove sales, while at checkout it did little or nothing.
     
    In-store
    media works. Today’s technology allows for great execution. Back in the ’80s,
    it was quite clunky and expensive to wire a store. Even before supermarkets, at
    the mom & pop grocers When I am ready to go to the supermarket, I go. When
    I am ready to order online, I do it.

  3. Susan O'Neal Avatar
    Susan O’Neal

    Not sure that I’ve ever heard the words “comfort” and “convenience” when talking about the Walmart shopping experience, so no – I don’t believe exploring in-store media is going to have an adverse affect on the Walmart shopper. If anything, even average content will create awareness of new products and new usage occasions that have value and likely elevate the experience.

    1. Andrew Casey Avatar
      Andrew Casey

      I totally agree, Susan. Most Walmart shopping trips seem utilitarian and price focused rather than experiential

  4. David Naumann Avatar
    David Naumann

    Walmart is a master at “test and learn” strategies for new technology trials. Digital advertising in Walmart stores seems like a great opportunity as they can charge a premium for CPG advertising because they are reaching a large share of the total audience. Advertising throughout the store to influence purchase decisions makes perfect sense, as long as it doesn’t annoy customers. Advertising at self-checkout is too late in the shopping journey in my opinion.

  5. Brandon Rael Avatar
    Brandon Rael

    There is a delicate balance between relentless digital ads being served at every retail customer touchpoint and providing meaningful and relevant offers that add value to the overall shopping experience. Walmart has made significant investments in-store technology, capabilities, and innovations. In-store AdTech is another part of their journey to resonate and provide value to existing and new Walmart customers.

    Considering that Walmart and its associated brands have well over 5,000 locations, their store base gives them a significant head start over any retailer in the AdTech space. It will take a quality over quantity approach to ensure that ads are not spam-like, drive authentic stories, and provide meaningful value to customers. If we veer too far into the other extreme, we will be bordering on the Minority Report relentlessness, where personalization has gone too far https://www.youtube.com/watch?v=7bXJ_obaiYQ.

  6. Michael Zakkour Avatar
    Michael Zakkour

    Walmart is no longer just the biggest retailer on Earth. Walmart is an entire ecosystem of consumer touchpoints, physical stores, digital commerce channels, technologies and supply chain operations.

    Expanding their retail media network, testing and learning with in-store tech and media, and moving beyond the funnel model of marketing is all on point.

  7. BenedictEnterprisesLLC Avatar
    BenedictEnterprisesLLC

    The use of the TV wall, or other screens within the store, is hardly new at retail…and particularly at Walmart. However, integration into the self-checkout experience makes total sense except for one small concern…

    Let’s suppose that the Self Checkout ad has its intended outcome, and creates the desire to add an additional product(s) to the basket. How does that happen from a customer experience standpoint? Does a customer “abandon” their self-checkout, put all their products back into the basket, and roll back out into the store in search of the advertised items? That feels like a nightmare for the customer, the checkout experience, and the brand paying for the ad.

  8. Brad Halverson Avatar
    Brad Halverson

    Words like elevating and lucrative for retail media is fine in corporate meeting rooms as long as the customer gets 100% consideration, respect, and a voice in execution. Otherwise this becomes simply advertising AT customers.

    Retailers should be deliberate, prioritizing helping the customer shop, elevate what they came to do, help them save time and money. Consider even letting customers vote to shut down digital media if they feel it isn’t helping them.

  9. Rachelle King Avatar
    Rachelle King

    While adding old retail touchpoints to new retail media programs may seem lucrative to both retailers and advertisers, it’s only valuable if it drives brand goals, likely conversion. There is indeed a fine line as to how much is too much for consumers to absorb or even appreciate in a single shopping trip. Walmart will need to find that line and ensure these instore efforts do not backfire. There is good reason to integrate digital and physical media but it cannot annoy or frustrate consumers…that’s the fine line…and it can move daily.

10 Comments
oldest
newest
Neil Saunders
Neil Saunders
3 days ago

Walmart has hundreds of millions of visits each week. That’s a lot of eyeballs for brands to get in front of. So, there is scope to become more creative about advertising in store. However, this needs to be done with care as too many ads can be intrusive and annoy shoppers, which is the last thing Walmart wants. Nevertheless, this is a big opportunity for Walmart which is still a minnow in retail media and advertising compared to Amazon which has almost 16x the revenue.

Gene Detroyer
Gene Detroyer
3 days ago

Walmart’s first experience with dynamic in-store media dates back to the ’80s. They have continued with various forms and iterations since then. Research showed that retail media within the shopping geography drove sales, while at checkout it did little or nothing.
 
In-store
media works. Today’s technology allows for great execution. Back in the ’80s,
it was quite clunky and expensive to wire a store. Even before supermarkets, at
the mom & pop grocers When I am ready to go to the supermarket, I go. When
I am ready to order online, I do it.

Susan O'Neal
Susan O’Neal
3 days ago

Not sure that I’ve ever heard the words “comfort” and “convenience” when talking about the Walmart shopping experience, so no – I don’t believe exploring in-store media is going to have an adverse affect on the Walmart shopper. If anything, even average content will create awareness of new products and new usage occasions that have value and likely elevate the experience.

Andrew Casey
Andrew Casey
  Susan O’Neal
3 days ago

I totally agree, Susan. Most Walmart shopping trips seem utilitarian and price focused rather than experiential

David Naumann
David Naumann
3 days ago

Walmart is a master at “test and learn” strategies for new technology trials. Digital advertising in Walmart stores seems like a great opportunity as they can charge a premium for CPG advertising because they are reaching a large share of the total audience. Advertising throughout the store to influence purchase decisions makes perfect sense, as long as it doesn’t annoy customers. Advertising at self-checkout is too late in the shopping journey in my opinion.

Brandon Rael
Brandon Rael
3 days ago

There is a delicate balance between relentless digital ads being served at every retail customer touchpoint and providing meaningful and relevant offers that add value to the overall shopping experience. Walmart has made significant investments in-store technology, capabilities, and innovations. In-store AdTech is another part of their journey to resonate and provide value to existing and new Walmart customers.

Considering that Walmart and its associated brands have well over 5,000 locations, their store base gives them a significant head start over any retailer in the AdTech space. It will take a quality over quantity approach to ensure that ads are not spam-like, drive authentic stories, and provide meaningful value to customers. If we veer too far into the other extreme, we will be bordering on the Minority Report relentlessness, where personalization has gone too far https://www.youtube.com/watch?v=7bXJ_obaiYQ.

Michael Zakkour
Michael Zakkour
3 days ago

Walmart is no longer just the biggest retailer on Earth. Walmart is an entire ecosystem of consumer touchpoints, physical stores, digital commerce channels, technologies and supply chain operations.

Expanding their retail media network, testing and learning with in-store tech and media, and moving beyond the funnel model of marketing is all on point.

BenedictEnterprisesLLC
BenedictEnterprisesLLC
3 days ago

The use of the TV wall, or other screens within the store, is hardly new at retail…and particularly at Walmart. However, integration into the self-checkout experience makes total sense except for one small concern…

Let’s suppose that the Self Checkout ad has its intended outcome, and creates the desire to add an additional product(s) to the basket. How does that happen from a customer experience standpoint? Does a customer “abandon” their self-checkout, put all their products back into the basket, and roll back out into the store in search of the advertised items? That feels like a nightmare for the customer, the checkout experience, and the brand paying for the ad.

Brad Halverson
Brad Halverson
3 days ago

Words like elevating and lucrative for retail media is fine in corporate meeting rooms as long as the customer gets 100% consideration, respect, and a voice in execution. Otherwise this becomes simply advertising AT customers.

Retailers should be deliberate, prioritizing helping the customer shop, elevate what they came to do, help them save time and money. Consider even letting customers vote to shut down digital media if they feel it isn’t helping them.

Rachelle King
Rachelle King
3 days ago

While adding old retail touchpoints to new retail media programs may seem lucrative to both retailers and advertisers, it’s only valuable if it drives brand goals, likely conversion. There is indeed a fine line as to how much is too much for consumers to absorb or even appreciate in a single shopping trip. Walmart will need to find that line and ensure these instore efforts do not backfire. There is good reason to integrate digital and physical media but it cannot annoy or frustrate consumers…that’s the fine line…and it can move daily.