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CPG glossary

Walmart retail media network, explained

What the Walmart retail media network is

The Walmart retail media network is Walmart Connect, the retailer's in-house advertising business, which sells sponsored search placements, display, offsite media and in-store ads against Walmart's own shopper data and reports the results back with closed-loop measurement. Walmart states that approximately 280 million customers and members visit its more than 10,900 stores each week across 19 countries (corporate.walmart.com), and that footfall is the asset the network is built on.

I have signed these invoices from the trade-finance side. The important thing to understand before you sign one is that Walmart Connect measures your campaign, and you measure your sales, and those are two different exercises that will not agree.

What Walmart Connect actually sells

Walmart Connect's own site splits the product set by advertiser size. For smaller advertisers it names Sponsored Products, Sponsored Brands, Sponsored Videos and Onsite Display. For enterprise advertisers it names Sponsored Search, Onsite Display, Brand Shop and Shelf, offsite media, and store ads. Campaign management runs through Ad Center, and the site markets closed-loop measurement and integrated measurement solutions alongside the media itself.

Store ads are the piece that makes this different from a pure ecommerce network. A brand buying Walmart media is buying placement against a shopper base that mostly still transacts in a physical store, which is also why the measurement question gets hard.

Where the money comes from

On most brand teams, retail media is funded out of the trade budget rather than the brand marketing budget, which puts it in the same pot as a TPR, an off-invoice allowance and a co-op advertising program. That has one practical consequence: it has to clear the same bar those do. If $48,000 of retail media has to beat $48,000 of price support, the comparison has to be run in the same units, and the only unit both speak is incremental sales.

This is why retail media sits inside trade marketing on the org chart at more brands every year, and why the trade-finance lead usually ends up owning the post-campaign read.

Measuring lift against a Retail Link baseline

Verdant Kitchen is an illustrative 16 oz pasta sauce brand, in 3,100 Walmart stores, running a four-week sponsored search campaign at a $48,000 media commitment. Here is the read two ways: raw before-and-after, and against a control.

LineRaw before/afterControl-adjusted
Baseline units/week29,40031,164
Campaign units/week (4-wk avg)34,90034,900
Incremental units/week5,5003,736
Incremental units, 4 weeks22,00014,944
Media spend$48,000$48,000
Cost per incremental unit$2.18$3.21
Contribution per unit$1.05$1.05
Contribution returned$23,100$15,691
Contribution per media dollar$0.48$0.33

The only difference between the columns is the control. The eight non-promoted weeks before the campaign ran at 29,400 units a week, but a comparable non-advertised item in the same category rose 6% over the campaign window, so the honest baseline is 29,400 times 1.06, or 31,164. Make that one adjustment and the incremental units drop from 22,000 to 14,944. The raw before-and-after read overstates the campaign by 47%, and the campaign returns 33 cents of contribution per media dollar rather than 48.

Both columns say the same thing about this campaign, which is that it did not pay back. The point of the control is that plenty of campaigns look like they did until you run it. Choosing a defensible baseline period is the whole game here, and choosing a baseline period for post-promo lift covers the selection rules in more detail.

Reading a Walmart Connect case study honestly

Walmart Connect publishes results on its own site, including a coffee creamer brand at "11.29% Sales lift" and a reseller at "68% Increase in sales year over year". Those are the platform's numbers, computed with the platform's methodology, and they are perfectly reasonable marketing. Three questions to hold them against before you plan a budget on them:

Lift against what baseline, over what window? A percentage without a comparison period is not a measurement.

Was there a control? Category drift, seasonality and a concurrent price change all live inside a raw lift figure.

Sales lift or contribution? A campaign can lift sales and lose money, which is exactly what the table above does.

Where Scout fits

Scout reads the Walmart Retail Link POS file you already pull, splits baseline from incremental sales at the SKU and week level, and lets you set a control so a media campaign gets the same scrutiny as a price promotion.

The boundary, stated plainly: Scout is not an ad platform. It does not buy, serve or target media, and it reports no impressions, clicks, CTR, CPC, viewability or platform-computed ROAS. Those are Walmart Connect's numbers and only Walmart Connect can produce them. Scout's number is incremental lift against a baseline, verified in Retail Link POS, which is a narrower claim and a better-evidenced one.

The short version

  • The Walmart retail media network is Walmart Connect: sponsored search, sponsored products and brands, display, offsite media and store ads, sold against Walmart's shopper base of roughly 280 million weekly customers.
  • It is usually funded from the trade budget, so it competes with price support and has to be measured in the same unit: incremental sales.
  • Run the lift against a control, not a raw before-and-after. In the worked example that moved the return from 48 cents to 33 cents per media dollar, a 47% overstatement.
  • Platform metrics and lift are different measurements. Use the platform's numbers to optimize the campaign and your POS to decide whether to fund it again.
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