Major retail companies are at a turning point with their advertising strategies. As they face increasing pressure to control more of their customer data and improve ad performance, questions arise about their next moves. Will they develop their own ad technology, or rely on external platforms? This strategic shift can shape the future of retail advertising and brand growth.
Why Retailers Are Rethinking Ad Tech
Retail giants like Walmart and Amazon have built their success partly through third-party ad platforms. However, concerns about data control, transparency, and cost are pushing them towards in-house solutions. For instance, Amazon’s expanding internal ad infrastructure hints at a desire to own more of the customer journey.
Understanding the Shift: From Dependency to Ownership
Currently, many retailers depend on external ad tech providers, like Google or Facebook, for advertising. But this dependence exposes them to challenges:
- Limited data control
- High platform fees
- Less transparency on attribution
By building their own ad tech, they seek to retain full control and optimize spend more effectively. It’s about turning from a buyer to a builder of their digital advertising ecosystem.
What This Means for Marketers and Brands
As these retailers develop internal ad solutions, brands working with them need to adapt fast. Relying solely on external ad platforms could become less effective if the retailers start prioritizing their proprietary tech. Marketers should start looking at ways to gain insights into in-house ad strategies and prepare for a future where retail data becomes more insular.
Amazon’s Winning Playbook
Amazon’s aggressive push into building its own ad tech infrastructure is a case study. They aim to connect ads directly with purchase data, making their ads more relevant and conversion-focused. This tight integration is hard to beat.
Practical Steps for Marketers in a Changing Landscape
How can brands and marketers stay ahead when retail giants control more of their ad tech? Here’s a straightforward plan:
- Invest in data-driven marketing: Use first-party data to understand customer behavior outside the retailer’s platform.
- Partner with retailers early: Establish direct relationships so you get early insights into their ad strategies.
- Explore alternative channels: Diversify ad spend across multiple platforms, including emerging tech.
- Focus on transparency: Request data sharing agreements to get detailed performance metrics.
- Prepare for shift: Develop skills in new ad tech and analytics tools that retailers might adopt internally.
Keep These Takeaways in Mind
- Retailers are building or expanding their own ad tech to control data and improve ROI.
- This trend reduces reliance on external ad platforms, impacting your ad reach and attribution.
- Proactive adaptation now can safeguard your brand’s future marketing success.
- Building direct data partnerships with retailers adds resilience to your campaigns.
In Summary: What’s Next?
Retailers like Walmart and Amazon are shifting towards owning more of their advertising tech. They aim to eliminate dependency on third-party platforms. For marketers, this means refocusing on data ownership, diversifying channels, and building strategic partnerships.
Here’s the bottom line – stay flexible and ready to adapt. The retail ad landscape is changing fast. Those who act now and align with retailer shifts will keep their competitive edge.