Trend Snapshot: Walmart, Kroger and the rise of e-commerce media

Examines how Walmart, Kroger and Target are exploring if, like Amazon, they too could exploit the customer data they possess and build an advertising business, with the aim of both increasing basket value and using ads to mitigate revenue losses.

Trend overview

Amazon has long been depicted as a scourge of offline retail; the demise of famous retail brands have been attributed to its own inexorable rise. However, an advertising model pioneered by Amazon offers vital lessons for legacy retailers such as Walmart, enabling them to monetise online and offline customer behaviour data in the form of search advertising revenue.

It all boils down to the “flywheel” concept, a mechanical metaphor to summarise the manner in which Amazon is able to achieve continual growth as a result of a virtuous circle of positive customer experience, seller satisfaction, reduced costs and...

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