While the earnings release primarily focused on the company’s retail business, its advertising arm, Walmart Connect, grew to $2.1 billion as marketers continued to flock to retail media networks. Walmart reported that the number of active advertisers using its platform increased by 136% in 2021.

Retail media advertising is the next big trend in digital advertising, driven by the surge in ecommerce spending and brands’ desire to target consumers close to the point of purchase.

Retail media advertising sits at the intersection of two major digital disruptions unfolding in Latin America: the meteoric rise of ecommerce and reallocation of ad dollars toward digital formats. While still nascent, retail media will play a larger part of brands’ marketing strategies in 2022.

Retail Media Networks. Retail media network ad spending has enjoyed rapid growth in the US over the last few years, and it’s worth keeping an eye on trends unfolding in such a hot marketplace. Display and video formats are becoming more popular with retail media advertisers.

Retail media networks will provide a boost to search marketing. The rise of retail media is tied closely to Canada’s recent surge in ecommerce sales: a whopping 75.0% growth rate in 2020 and a 25.5% increase in 2021, driven by pandemic buying. Retail search ad products are bottom-of-the-funnel tactics, one click away from many purchases.

Following a banner year, US ad spending in 2022 will be shaped by three key trends: Linear TV crossing the Rubicon, a billionaires’ club emerging in connected TV (CTV), and ecommerce ad spending enriching Google, Amazon, and a crop of newcomers in search and retail media.

Retail media networks will provide a boost to search marketing. The rise of retail media is tied closely to Canada’s recent surge in ecommerce sales: a whopping 75.0% growth rate in 2020 and a 25.5% increase in 2021, driven by pandemic buying. Retail search ad products are bottom-of-the-funnel tactics, one click away from many purchases.

As retail media advertising continues to increase year over year, retailers and brands have the opportunity to better plan their digital advertising strategies

The majority of US social buyers still order from retailer websites, rather than directly on social platforms. In December, 61.5% said they made their most recent social commerce purchase on the retailer’s site, while 38.5% reported doing so through the social network’s checkout feature.

On the other end of the retail spectrum, D2C brands might message around opting out of Prime Day by showing support for small ecommerce businesses instead. Court advertisers to your retail media network. It’s time for retailers to turn Amazon’s strength as a retail media network (RMN)—predicated on its massive traffic and long head start in the race—into a liability.

The company has hired more than 400 staff in Toronto, established more retail partnerships, and developed its retail ad network. Instacart’s services can now reach 90% of households in Canada, via 40 retailer partnerships representing 2,400 partner store locations. For grocery and CPG brands, Instacart’s retail media network is increasingly important as audiences grow.

Amazon’s demand-side platform (DSP) is one example of such a retail media network. French retail giant Carrefour has also moved in this direction with its Carrefour Links platform. Brands Must Get Up to Speed with Video Ads. The appeal of video is a major driver of rising spend on digital display ads around the world—and Western Europe is no exception.

Walled gardens will drive gains in CTV, social platforms, and retail media networks. Ads within the triopoly—Google, Facebook, and Amazon—are programmatic by default, and their share of total US display ad spending is growing compared with nontriopoly publishers.

On today's episode, we discuss Amazon's Q1 advertising performance, where its ad dollars are coming from, the retail media competitors to watch out for, and whether a fourth digital ad giant will emerge. We then talk about why TV networks aren’t prioritizing programmatic as they move into the world of streaming, Verizon's new digital out-of-home ads, and why Netflix might be preparing to venture into the video game universe. Tune in to the discussion with eMarketer senior forecasting analyst at Insider Intelligence Eric Haggstrom.