Amazon’s Retail Ad Service Takes on Walmart Connect

Amazon THERE launched its Retail Ad Servicea new platform WAS to help retailers get involved easily targeted advertising to their digital storefronts. Powered by Amazon Web Services (AWS), the service allows retailers to display ads on productsearch and browse pages, while purchases are completed in their YOURSELF websites.

Currently in beta with partners like iHerb and Oriental Trading Company, the service will soon be available to a wider range of retailers. This move strengthens Amazon’s leadership in the retail media sector, offering a plug-and-play solution that uses its advanced ad technology and infrastructure, while allowing retailers to generate additional revenue through shared ad sales.

Walmart offers a similar advertising platform, Walmart Connectwhich allows retailers to advertise on Walmart’s digital properties, such as its website and mobile app. Like Amazon’s Retail Ad Service, Walmart Connect provides a variety of ad formats, including sponsored products, display ads and video ads, with targeting options and performance tracking. The platform uses Walmart’s consumer data to improve ad targeting, aiming to drive sales and compete with Amazon in the expanding retail media sector.

In an interview with PYMNTS, Bellamy Grindlprincipal and founder on Retaillyticsexplains Amazon’s expertise in “refining personalization through retail and advertising algorithms likely gives its Retail Ad Service an advantage. In contrast, the personalization of Walmart Connect is the strongest within the Walmart ecosystem, making it a powerful solution for brands that are in tune with their audience.

For retailers looking to tap into Amazon’s broader audience, Grindl added, “the new one The Retail Ad Service could provide a significant advantage, particularly in its seamless integration with the larger Amazon ecosystem. Both platforms offer strong options, but the best option will depend on a retailer’s tech stack, audience goals, and alignment with the respective ecosystem.

while Greg Zakowiczsenior eCommerce expert at Omnisendexplained by PYMNTS THE The biggest difference is allowing retailers to integrate the ad platform into their websites.

“Every retailer, including Amazon, knows that consumers shop on different sites,” Zakowicz said. “Giving brands the ability to target shoppers as they comparison shop can be a valuable asset for brands.

“Both platforms allow ads to be displayed on different ways, such as sponsored products, sponsored brands and video. However, Walmart Connect primarily focused on Walmart properties, such as their website. While they offer brands some things Amazon can’t, like in-store ads, the ecosystem is small. more closed than what Amazon is trying to build. “

Zakowicz wonders how Amazon is doing Carry On use off-site data to personalize its website targeting.

“It is assumed that Amazon will process data on shopping behavior from third-party websites that is using their Retail Ad Service,” he added. “Using that data to learn what consumers are buying, and combining it with their first-party data, they can deliver more targeted ads to the user on their next visit.”

Here’s a look at other notable developments from Amazon and Walmart over the past week:

Amazon Highlights

• AWS Partners With General Catalyst: AWS has associated with General Catalyst to combine artificial intelligence (AI) into healthcare to improve patient outcomes and make care more accessible. The collaboration will focus on AI-powered solutions for predictive and personalized care, diagnostics, patient treatment, and operational efficiency. By using generative AI and health-specific models, the partnership plans to improve disease diagnosis and treatment predictions, reduce health care costs and improve care delivery.
• Amazon Ends “Try Before You Buy” Prime Service: Amazon wants will discontinue its “Prime Try Before You Buy” service on January 31 as part of its cost reduction. Launched in 2017, the service allows Prime members to try on clothing before being charged. After the shutdown, customers can still return clothing items for refunds, and Amazon will offer other shopping features such as virtual try-ons and personalized size recommendations. This move comes amid a wider industry trend of using AI to manage expensive rates of return.

Walmart Highlights

• Walmart Partners With Rebag: Walmart is working together with a luxury resale platform Rebag to offer pre-owned handbags, jewelry and accessories on its US website, aiming to attract affluent shoppers and fashion enthusiasts. Through the partnership, Walmart’s marketplace now features certified items from high-end brands such as Chanel, Prada and Fendiwith prices ranging from hundreds to thousands of dollars. This partnership enhances Walmart’s product offerings, AVAILABLE starting this week.
• Walmart, IBM Last-Mile Delivery Partnership: Walmart partners with IBM to improve last mile delivery for retailers by integrating Walmart’s GoLocal delivery service with IBM Sterling Order Management platform. This collaboration allows IBM’s retail customers to integrate Walmart GoLocal delivery solutions, which are offered options like same-day, next-day and scheduled deliveries to improve service and meet consumer expectations for faster delivery.