Walmart’s Strategic Move
Walmart has recently announced the end of its exclusive partnership with The Trade Desk as the sole demand-side platform (DSP) for its retail media network, Walmart Connect. This marks a significant shift in strategy aimed at increasing ad revenue, which has grown to $4.4 billion. By opening its DSP roster, Walmart seeks to foster greater competition among technology providers and offer more options for advertisers accessing its inventory and first-party data.
Impact on Advertisers: Costs and Choices
The broadening of Walmart’s DSP roster introduces competitive dynamics that are likely to benefit advertisers through lower costs, including reduced cost-per-thousand impressions (CPMs) and technology fees. Media agencies and brand marketers will have new avenues to tap into Walmart’s valuable audience targeting capabilities, breaking the previous barrier imposed by exclusivity.
While this move presents opportunities for cost efficiencies, advertisers may experience divergent outcomes. For some, consolidating spend within a single DSP may still be preferable for simplified management. Others might face increased operational complexity managing multiple DSP relationships. Thus, balancing cost savings with workflow efficiency will be an important consideration.
Adapting to the Evolving Landscape
Walmart’s decision influences broader joint business planning between advertisers and its retail media network. With greater DSP choice, conversations around media strategy and budget allocation could shift toward emphasizing price competitiveness and diversified access.
However, some advertiser needs, such as advanced reporting, measurement accuracy, and streamlined workflows, remain focal challenges. Successful navigation will require ongoing collaboration and innovation to deliver comprehensive campaign insights across multiple platforms.
What’s Next for Walmart Connect
Looking ahead, Walmart Connect may continue expanding its DSP roster by including additional third-party platforms, potentially even from unexpected partners. There is also speculation about Walmart developing its own proprietary DSP to further control the technology stack, similar to moves made by competitors like Amazon.
These initiatives align with Walmart’s pursuit of full-funnel advertising capabilities and greater profit margins amid intensifying competition in retail media. Ultimately, this strategic expansion underscores Walmart’s commitment to retaining a strong position in a rapidly evolving marketplace where advertisers demand flexibility, performance, and cost efficiency.
