Walmart Connect's Ryan Mayward on Their Big CTV Move: Yahoo, Magnite and Vizio Explained

0:02 [music] >> All right, welcome to Marketer here where you can get smart fast with in-depth interviews of leading technology executives. I am Ari Paparo and I'm joined today by Ryan Mayward, the SVP and GM of Walmart Connect. Thanks for being here, Ryan. >> Thanks for having me, Ari. >> Uh excited to talk. Walmart's always in the thick of things, the middle of uh some of the most exciting stuff going on in digital advertising. So um recent announcement that made some waves about integrating with Yahoo and Magnite. Tell us about it.

0:41 >> Yeah, well uh we did make an announcement recently involved four parties, really. Yahoo, Magnite for the benefit of Vizio and of course Walmart Connect was the driver of it. And um essentially what we announced was that Walmart Connect has integrated our audiences with Magnite. So sell-side decisioning, making our our data available on Magnite uh in a completely controlled environment. Targeting our audience segments as well as our measurement capabilities for the benefit of the Yahoo DSP to run campaigns on Vizio inventory um using Walmart audience for targeting and and for measurement. So yeah, that's the that's the announcement. I think there's a lot to unpack there, right?

1:26 >> Simple four-way four-way arrangement. >> Yeah, exactly. And so [laughter] you know, why? Uh where did all this begin? It it started with Vizio, right? We acquired Vizio a couple years ago now. And when we acquired that company, we really saw it for three things. It's a device manufacturer, software company, right? They built the Vizio operating system um for smart TVs, and an ad business. And um so the calculus for Walmart was how do we grow Vizio, right? As the largest seller of of TVs in the US. We had some options there.

1:59 We can sell more Vizio TVs and we can also apply the Vizio operating system to one of our other best-selling TV brands, which is our own, our private label brand, Onn, O N N. And so we did that and that's helping us expand household penetration for Vizio. But in parallel and as of March, you know, the Vizio operating system was the number one selling operating system in the US about one in five TVs shipped had Vizio OS powering them. So it's exciting. That's working.

2:32 But in you know, in parallel we have the Walmart Connect business where we've also had a CTV business for several years powered by the Walmart DSP, which we built out years ago in partnership with the Trade Desk where, you know, we've been applying Walmart audiences and measurement to Paramount Plus and NBCU and Disney and other inventory. And really doing it through this one buying channel. So the task at hand was how do we maximize the number of advertisers that can use Walmart data for audience targeting and measurement and do so for Vizio, do it on Vizio inventory while also holding true to one of you know, Vizio's tenants as an advertising business, which is easy to buy, right? How do you how do you reduce the friction for advertisers access Vizio?

3:21 So that's what we're really what we're grappling with and led us to this Magnite Yahoo partnership. >> Okay, this is super interesting. Um so the why go sell side? So you're integrating the data into Magnite sell side. It's sort of a curation kind of feel. Um I guess I have multiple questions here, but [laughter] like, you know, why first start there? Why sell side first? >> Yeah, it just gave us a lot of options, right? It was a flexible lightweight way to get started. And also it It adjacent to the place where Vizio is running their whole ad business essentially, right? They They use the SpringServe um Magnite's the main SSP that they use, but they also use others like Index. And so, that was just the natural place to start as um as the the top sort of CTV SSP, it was it was where um we felt like we got a great partner, very flexible, and um we're able to integrate our data in a way that we were really comfortable with.

4:16 >> Got it. Um and is it only available to Yahoo through this pipe? So, was it is it exclusively going from Vizio to Magnite to Yahoo? Or will other buyers be able to buy it through Magnite? And will Magnite buyers be able to buy it through Magnite? >> Yeah, in time. Uh yes to to those questions. Um so, we plan to add more DSPs in the future and certainly making it available through a direct buying path through Magnite, but we're beginning with with Yahoo. And they've been great partners throughout this process.

4:48 >> Yeah, it's pretty exciting that um that the data is being available in some form and that uh I think a lot of people feared when the Vizio acquisition happened that it was the walled gardens were starting to be the the walls were coming up. Um and to understand that it it's not is a pretty positive indication. >> Yeah, we we want to be where advertisers are spending their time and um applying their budgets. And um that's in multiple DSPs. So, you know, we want to be flexible. We want to help Vizio continue building the business that they're building, but we also want to do so in a way that makes sense for Walmart Connect, which is, you know, maintaining control over the data.

5:28 >> Yeah. Yeah. And And so, zooming out, how does how do you see the CTV market evolving in the US? Um there are some walled gardens, you know, Amazon and and YouTube. Um and then there's open and there's sort of, you know, pretty limited ability to buy on certain broadcaster inventory, et cetera. So, what are the big trends here? >> Well, if we were to take uh the upfront presentations a week or two ago as a guidepost, advertisers want outcomes, right? Like they want to be able to buy CTV and understand not just proxy metrics like region frequency, but how's it driving my business? What are KPIs that I can tie back to ultimately sales, customer acquisition, lifetime value?

6:08 And so, I think that that's an important trend that will inform how CTV evolves, and that's where we're really playing to our strengths. We can do that for brands at scale. We can help them understand, for example, how many customers who saw their ads on a CTV in a CTV environment were new to their brand, right? Like customer acquisition, for example. Um so, it's all about outcomes and and in our view. >> Yeah, and and so outcomes is a uh part of your go-to-market for the Walmart DSP. Is that Is that right?

6:39 >> Very much so. Yeah. Uh we reach most of America, about 150 million customers a week shop at Walmart stores and in the Walmart shopping app. And so, we talk about our scale, our national scale. We talk about the breadth and the depth of the signal we have on our customers, you know, shopping weekly for groceries as well as um all the other essentials that they need and want. And then, you know, the the depth and breadth of the solutions, CTV being, you know, one of many ways that advertisers can work with us to drive drive demand.

7:11 >> Yeah, so um if you're letting the customer choose, you know, to use a different DSP, let's say, um it's a little bit harder for you to, you know, guarantee outcomes or or be at the front with outcomes. Am I Is Isn't it sort of up to them at that point? >> Uh you know, we're controlling the attribution model in all cases. >> Yeah, okay. >> So, um we are defining a closed-loop measurement, and that means calculating return on ad spend. That means defining the new-to-brand metric. So, the objective for us is to make sure that brands have consistent measurement regardless of the ad format or or channel that they're accessing through Walmart Connect. You know, we have integrations with uh the leading social platforms. You know, CTV is one of many things that we do, and that's what what brands want from us is consistent measurement across all of them, and that's really what we're aiming to deliver.

8:03 >> Right. So, that speaks to sort of your engagement model. So, if I'm some brand and I you know, I say to my Walmart rep like, "Hey, I really want that great Vizio data. I want your inventory, but I want to use a different DSP." You're still servicing that client with the attribution and all the things that make it possible. It's not not just the hands on keyboard. >> Yeah, exactly. And they're they're doing that in the Walmart DSP, they're doing that in the Yahoo DSP, and more to come.

8:33 >> Right. Uh super interesting. Um I know um last time we had a conversation with Walmart, we're talking a lot about incrementality and all these advanced measurements. Um how how much is the market taking you up on some of these more advanced ways of looking at media both Walmart media and other media? >> I think for the last yeah, 12 15 years uh return on ad spend got retail media going, um but has really diminished in importance. Brands want IROAS at this point in time, right? They want to understand Okay. How is your media driving sales that wouldn't have happened without advertising? And that's what we're focused on, and there are different ways that we can measure sales lift. We can do it through, you know, creating hold out groups at a time with ghost ads. We can do it through synthetic control groups. We have a number of different methodologies, but at the end of the day, brands want to understand IROAS across all of the different uh formats and and buying channels that they're using, and that's what our measurement roadmap is really oriented around is making IROAS the ubiquitous metric.

9:36 >> Right. And so, you're able to expose consumers to certain messages through either the Walmart DSP, another DSP, whatever it is, and then hold back some group of similar consumers, and then later check what the exposed and control physically bought in a store or bought online. Am I putting words in your mouth? >> Uh no, that's accurate. That is And that's an important nuance there at the end is online and in store. And as in, you know, the largest omnichannel retailer, that is a big equation is bought in store.

10:07 >> Yeah, of course. Of course. Uh is there you know, I I I'd love to get into the weeds. Maybe this is too detailed, but like are there nuances to measuring online versus in store in terms like how long it takes, how good the control groups are, and stuff, whether you have loyalty cards, stuff like that? >> Yeah, well, we have a membership program, Walmart Plus. Uh we don't have a you know, a loyalty program besides that. So, really it's about catering to our members as well as our customers. And I think that one nuance would be, you know, currency, right? You're paying with a credit card or paying with cash. So, there's some subset of our customers who pay cash.

10:43 You have that to overcome. But, you know, attribution-wise, um we keep the model consistent. That's what brands want. And we've built all of our attribution around providing a similar look between online and and in store. >> I forgot about cash. Not to mention like Bitcoin and Dogecoin, you know, you got all kinds of problems. >> [laughter] >> Um so, the other thing that's very hot in retail media is in store and just in general, like, you know, physical billboards, digital billboards, and you know, things like that. Um and now you own a company that buys a lot of screens, right? So, [laughter] um how is that part How How are you thinking about that?

11:24 >> How are we thinking about Vizio as a a supplier of >> Or maybe not Vizio, but just the in store and uh and digital display opportunity. >> Yeah, it's it's been, you know, positioned as the next frontier in retail media is putting more compelling ad opportunities in the physical store. And we do have some announcements on the horizon about that. Um we do plan to test um new large screens at the end of aisles um throughout, you know, grocery and uh beauty and other parts of Walmart stores. There are some stores that are set up today with the screens as sort of a a test and we'll be expanding on that test later this year. It'll be something that we'll be talking about with our our clients at CAN as well. Um but we see the store as a an important um touchpoint with customers to help them, you know, discover brands and um find what they're looking for. So, the store is definitely part of the omni-channel uh retail media experience of Walmart Connect.

12:25 >> Right. Um and it lends itself immediately to uh incrementality cuz you just put them in some stores and not others, you know, and see what happens. >> Geographical holdout. >> Yeah, it's a per-store holdout, right? Um yeah, so let's let's just move into a quick sort of lightning round. I'll just ask a couple quick questions and we'll get sort of quick answers from you. Um so, what Walmart Connect, what what's its biggest advantage? >> We're helping brands grow their businesses with the largest omni-channel retailer, right? So, we're doing that through our our scale, obviously, which I touched on before. Um the depth of our our signals on what Walmart customers are buying day-to-day, week-to-week. And then all of the different touchpoints that we can um serve up as part of a solution to a brand.

13:11 >> Right. Uh and what's your biggest challenge? >> Our biggest challenge? Um gosh, that's that's a hard one. To be to be self to be self-critical. Um I guess >> are too low. The everyday prices are just too low. >> Pace, [laughter] right? We're always trying to move faster and that's never easy inside of a large company, but I've been very impressed with the rate at which Walmart's moved to build out this advertising business. >> It is impressive how fast it's moving.

13:44 The and last question we always ask which is if Walmart Connect was an animal, what animal would it be? >> I don't know. Is Sparky an animal? >> Sparky's a kind of an animal. >> maybe it [laughter] would be Old Roy. You know, Sam Walton's hunting dog, right? Which is the which is the the sort of logo for for our private label pet food. Um >> [laughter] >> Maybe that. Maybe a hunting dog. >> Hunting dog. All right. All right. Old Roy, is that his name?

14:12 >> Old Roy. That's right. >> I'll look that up. I'm not that familiar with the Walmart lore. >> You got to get into the history of the company, man. >> Yeah, I've never been to Bentonville. I've barely been to Hoboken. Now I understand Hoboken is the center and I live in New York. I just don't cross the river too much. >> Yeah. Let's let's skip [laughter] straight to Bentonville. >> All right. Well, Ryan Mayward, thank you so much for joining us and telling us about Walmart Connect and the latest developments.

14:36 >> Thanks for having me.