Retail media breaks out of the store into live TV

MediaPost reported Walmart Connect expanded its audiences and closed-loop measurement across live linear TV, streaming audio and CTV through Warner Bros. Discovery, Spotify and Yahoo DSP, with Walmart's US ad business up 43% in the second quarter. Adweek reported Walmart acquired Vibe.co for a reported $1.4 billion after Vizio ($2.3 billion), and is pitching non-endemic advertisers who do not sell at Walmart. MediaPost also reported Best Buy Ads partnered with LG Ad Solutions to sell LG's CTV inventory, including the home screen, programmatically via Magnite with closed-loop measurement. A Hidden Valley Ranch campaign through Walmart reported 55% incremental reach, 27% lower CPM, 26% more add-to-carts and a 3% lift in brand awareness. MediaPost noted why the model matters to the retailer: Walmart's ad yields carry profit margins estimated between 70% and 80%, so every dollar into Walmart Connect is worth more than a dollar of groceries.

The crux

Retailers are turning their first-party purchase data into an audience currency that can be sold against premium TV inventory, not just their own shelves.

Sell-side read

Closed-loop retail measurement is the competitive pressure on premium publishers' TV pitch, because it can prove sales lift in a way most publisher inventory still cannot.

Watch

How many CTV publishers join Walmart's Alpha phase beyond Vizio, and whether other retailers copy the live-linear play.