Retail media is upending the business relationship between brands and ad sellers like Amazon and Walmart
In a few cases, advertisers have threatened to pull spend to rework their deals with retailers.The rise of retail advertising — an industry expected to make $45 billion in the US this year, according to Insider Intelligence — has been a promising new revenue source for retailers like WalmartBut advertisers are getting fed up because they don't like paying extra for digital ads. In some cases, they've threatened to pull spend.
"I think that model is falling out of favor with brands," said Kiri Master, head of retail marketplace strategy at ad agency Acadia. Retailers want to keep their retail media revenue separate from JBPs. Retailers have invested a lot of money in building theirand want to keep it as a separate line of business, not incorporate it into an existing one, because advertising has high margins compared to retailers' other lines of business.
She added that brands have other problems with Amazon as well. For instance, Amazon often under-orders products, so customers can't buy them, said Masters. Amazon is also charging merchants significantly higher fees than in the past, according toMasters said Amazon is trying to entice sellers to buy ads by bundling a cloud-based ad product called Amazon Marketing Cloud into JBPs to smooth over some of sellers' frustrations. AMC lets advertisers measure if their digital ads drove sales.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Senate Democrats Urge Walmart, Costco, Albertsons and Kroger to Sell Abortion Pill MifepristoneThe senators urged the companies to get certified with the FDA to sell the abortion pill mifepristone and provide access that is as broad as possible.
Read more »
Driver arrested after crashing into Georgia Walmart store, killing 1, police sayOne person is dead after a car crashed into the front entrance of a Walmart store in Thomasville, Georgia on Wednesday morning, state police said.
Read more »