Amazon vs. Walmart DSP

Amazon vs. Walmart DSP

As Walmart scales upward in an attempt to challenge Amazon’s eCommerce supremacy, they’ve released a powerful DSP (Demand-Side Platform) service. Using the data already available from their extensive customer base, Walmart is well positioned for incredible growth potential in the coming years (Walmart’s Ad business grew by 130% in 2020 alone). 

Amazon, however, still continues to dominate the space even with the consistent growth of would-be competitors. As the marketplace continues getting increasingly crowded, let’s break down the DSP performance of these two leading digital marketplace giants.

Quick DSP Recap

A third of the Programmatic Advertising trinity, alongside Supply-Side Platforms (SSP) and the Ad Exchange, DSP allows brands to bid on digital ad inventory in real-time on an automated basis. In other words: brands can choose the demographics, trends and other factors they want to target, then automate the bidding process to beat out other brands to plaster the ad onto a site for consumer viewing.

Walmart Connect’s DSP

On November 2nd, 2021, Walmart Connect (Walmart’s Advertising wing) launched its DSP service as a direct competitor to Amazon. Partnering with The Trade Deck DSP, the extensive digital reach works synergistically with the retail giant’s understanding of consumer trends and interests. Thanks to decades of customer sales data at the e-commerce, app, and store level, the service provides advertisers an unparalleled level of precision to get your ad in front of the right consumers. 

Walmart’s DSP also provides complete access to all of The Trade Deck’s marketing platforms, including display, video, mobile, connected TV, and audio. Additionally, advertisers receive advanced security and protection services, including anti-fraud algorithms, a dedicated marketplace quality team, exclusion and inclusion lists, sensitive site blocking, and more.

Lastly, advertisers are given a generous level of autonomy when running campaigns. With the ability to easily manage frequency caps across all campaign touchpoints, the decision to drive clicks straight to the Walmart site for conversion or to your brand site to generate awareness, and access to concise reporting that measures sales even at the retail level, Walmart Connect has constructed a powerful tool for it’s rapidly growing digital marketplace.

Amazon vs. Walmart

Since Amazon launched its own DSP in 2016 to challenge Google’s advertising business, the venture has proven to be very successful. However, with a $35,000 minimum buy-in, smaller brands can be kept from utilizing the service’s potential for customer acquisition and audience reach. Thus, Walmart’s entrance into the DSP space gives advertisers two key benefits when marketing to this established brand’s consumers

  1. Walmart’s massive collection of first-party data can now be repurposed both within and outside of its purview.
  1. Walmart’s ad business now allows brands who don’t already sell at Walmart to use their data to drive conversions.

Those running ads through Walmart’s DSP have already seen visible success. BIC, the company made famous for its collection of pens and highlighters, ran extensive campaigns through Walmart’s DSP during December 2021. The results? An overall exceptional performance, with some products earning ROAS of 492% and 472%. And as time passes, Walmart continues to roll out greater optimizations, with the last few months alone bringing a transition to advanced second-price auctioning, as well as top search trends reports.

Amazon, of course, still operates an effective reach with its own DSP, but Walmart has presented itself as a viable, up-and-coming contender in the world of digital marketplace advertising. So in the end, both companies offer strong, viable data for creating conversions. With Amazon’s tried and true DSP presence, and Walmart’s extensive consumer-retail data, brands would be well served to explore the DSPs available in both marketplaces. 

The eCommerce marketplace is a constantly evolving environment with its fair share of booms and busts. Navigating it successfully can be challenging for anyone, which is why you should leave it to the experts, allowing you to focus on managing your brand goals. Macarta is a full-service marketplace agency specializing in retail media to drive growth and sustained success for its brand partners. Reach out to us here, and let’s get started.




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