Where Should CPG Brands Place Their Media Bets?
Retail media isn’t just a buzzword; it’s the modern battlefield for CPG brands looking to grow. But when it comes to making those ad dollars count, the choice isn’t so cut and dry.
Let’s face it—Amazon’s “budget wars” are a bloodbath, and the stakes keep rising.
As Forbes notes it, “click-through rates declined 7% compared to last year’s Black Friday, suggesting that while brands are spending more, they may be getting less bang for their buck.”
The preliminary data from Pacvue shows the cost-per-click (CPC) for Amazon ads increased 9.9% compared to Black Friday 2023, reaching $1.89.
But what if there was a way to sidestep the chaos and focus on a growth strategy that actually makes sense?
We have Amazon, with its crowded and cutthroat marketplace, thriving on brands competing against one another, soaring Bezos’ revenue, on the other, there’s Walmart Connect, a rapidly expanding ecosystem full of untapped opportunities.
So, the big question is: Should you keep fighting for attention in Amazon’s hyper-competitive realm or bet on Walmart Connect and ride the wave of growth?
Spoiler: Walmart Connect might just be the underdog story that pays off.
Here’s why leaning into Walmart’s growing ecosystem could be the strategic edge your brand needs.
Amazon’s Complexity and Rising Costs: Are You Ready for the Reality Check?
Amazon keeps throwing more tech into the mix—AI-powered video tools, listing optimizations, and Project Amelia (your new best friend if you want an assistant). Sounds great, right? But here’s the kicker: the more complex Amazon’s ecosystem gets, the higher the stakes for your brand—and the costs.
Higher CPCs: We’re talking an 8% increase for Sponsored Brands and 4.4% for Sponsored Products in Q3 2024. Year-over-year? A 12% jump for Sponsored Brands. That’s not just inflation; that’s an expensive race to stay relevant.
Declining ROAS: Return on ad spend? Down by over 7% for both Sponsored Products and Sponsored Brands in Q3. Profitability during peak sales seasons is now a far-off dream for many brands.
Shopper Fatigue: Even with Prime Day boosts (hello, 6.2% CTR increase on that day), Sponsored Brands’ click-through rates dropped. You’re not just fighting for ad space, you’re fighting for attention in a crowded marketplace that’s showing signs of burnout.
Amazon’s optimization tools help, but they can’t stop the relentless rise in costs. The reality is, the harder you try to squeeze out of Amazon’s ecosystem, the more you’re forced to pour in. If you’re feeling the pinch, maybe it’s time to reconsider where you’re betting your ad dollars.
Cost Per Click Comparison – Amazon vs Walmart Connect Q3 2024
So what is the alternative?
Walmart Connect: The Smarter, Strategic Alternative to Amazon’s Ad Wars
Walmart Connect is making its move—quietly but powerfully. While Amazon dominates the noise, Walmart’s carving out a smarter, more profitable space. With less competition, better targeting, and stronger ROI, it’s quickly becoming the ad platform brands can’t afford to ignore. The rise is real, and the glory is just getting started.
Lower CPCs: Walmart Connect offers a more cost-effective advertising environment, enabling challenger brands to gain visibility without competing with deep-pocketed conglomerates.
In-store Advertising Innovation: While Amazon is still trying to figure out how to get into your living room, Walmart’s already got a foot in the door. With its physical retail footprint, Walmart Connect lets you reach omnichannel shoppers with in-store ads that Amazon just can’t compete with. Talk about having a real-world edge!
Sustainable Growth: Forget the “race to the bottom” of bidding wars. Walmart Connect’s ecosystem isn’t about short-term wins; it’s about long-term collaboration. Brands looking for a future-proof strategy can grow with Walmart Connect’s sustainable, growth-oriented focus—no more fighting over the crumbs.
Explosive Growth: Walmart Connect is on fire, achieving a 30% revenue growth in its ad platform year-over-year. The secret? A relentless pursuit of incremental improvements and cutting-edge solutions like in-store ads. This isn’t just about pushing products online—it’s about enhancing the entire shopping experience, online and offline.
Support for SMBs: Walmart Connect is all about the little guys too. With initiatives like the Walmart Seller Summit, the platform is committed to fostering growth for small and mid-sized businesses. It’s about leveling the playing field and giving emerging brands the tools to thrive.
This all aligns with a forward-thinking budget strategy. As Walmart Connect News puts it: “If online channels are projected to be 60% of your growth in 2025, you should consider allocating 60% of your marketing budget growth to digital/retail media channels.”
So, if you’re looking to maximize returns and escape the madness of Amazon’s ever-increasing costs and competition, Walmart Connect might just be your golden ticket to sustainable growth.
Making the Shift: Practical Considerations
Amazon’s saturated ad market, with its intense competition and escalating bids, forces brands into a zero-sum game where only the largest players can afford to win. Walmart Connect offers a chance to escape this dynamic, leveraging innovative solutions and a rapidly growing ecosystem to maximize ad effectiveness.
For CPG brands looking to thrive in the evolving digital landscape, the choice is clear: Stop fighting in Amazon’s budget wars and start building sustainable growth with Walmart Connect.
Your growth deserves a platform as ambitious as your goals—one that works with you to unlock the next wave of retail success.
ABOUT RMIQ – Retail Media Ads Made Easy
RMIQ is a cutting-edge ad tech platform designed to help established and challenger brands thrive on retail media – the most effective marketing channel nowadays.
By using AI-driven advertising, we create targeted, data-driven campaigns that increase brand visibility, drive engagement, and boost sales. Whether you’re an established brand or a rising star, RMIQ helps you break through the competition.
In this world, success isn’t about outbidding or overpowering; it’s about outsmarting, connecting, and rising together. RMIQ is the force that binds this digital ecosystem, giving brands the edge to lead and harness the powers of retail media ads and sales.
What industries does RMIQ specialize in for digital advertising?
RMIQ specializes in high-growth industries, including consumer packaged goods (CPG), food and beverage, beauty, health, electronics, and many more. We help brands in these sectors increase their visibility, expand their audience, and drive sales using our AI-powered ad platform.
See our tool in action here. If you are ready to explore the Walmart Connect advantage and drive your sales- Let’s talk. Drop us a line at [email protected]
