Podcast Summary: Live from Chile at Walmart Connect's Accelerate Supplier Summit with PVSB
Podcast Title: The CPG Guys
Hosts: Peter V.S. Bond & Sri Rajagopalan
Guest: Lucas Barros (Walmart Connect Chile)
Episode Title: Live from Chile at Walmart Connect's Accelerate Supplier Summit with PVSB
Release Date: February 8, 2025
In this special live episode of The CPG Guys, co-host Peter V.S. Bond joins Lucas Barros from Walmart Connect Chile to discuss the evolving landscape of retail media. Recorded mid-December during the Accelerate Supplier Summit in Santiago, Chile, the episode delves deep into the current state, challenges, and future trends of retail media both in the United States and Latin America.
1. Introduction and Event Context
Peter V.S. Bond begins by sharing his experience attending Walmart Connect Chile's Accelerate Supplier Summit. Despite his co-host Sri Rajagopalan's absence due to travel issues, Peter provides an engaging introduction about his role at Flywheel, the eCommerce accelerator division of Omnicom, and the podcast’s impact.
Peter V.S. Bond [00:08]: “When I'm not co-hosting this podcast, I serve as head of industry and client engagement at Flywheel...”
2. Current State of Retail Media
The conversation shifts to the rapid growth of retail media, highlighting the decline of traditional linear television as consumers increasingly shift to streaming and digital platforms.
Peter V.S. Bond [06:57]: “Retail media is a rapidly growing segment of the overall media industry.”
Peter explains that the decline in traditional TV viewership has driven advertisers to seek more measurable and effective channels, positioning retail media as a superior alternative due to its closed-loop measurement capabilities.
Peter V.S. Bond [08:06]: “Retail media is ultimately presenting brand advertisers with a better mechanism than they've ever had to measure the effectiveness of advertising.”
3. Building Growth through Retail Media
Peter discusses how retail media not only offers better measurement but also drives growth by enabling precise targeting based on consumer purchasing behavior rather than broad demographics.
Peter V.S. Bond [11:23]: “The segmentation through purchase versus demographics is substantially, we're talking probably 2x more effective.”
He emphasizes that this precise targeting allows brands to invest more efficiently, either maximizing reach within a finite budget or scaling their investments to drive additional growth.
4. Importance of Partnerships in Retail Media
The dialogue emphasizes the critical role of partnerships between merchants, retail media networks, and brands. Peter underscores the necessity for alignment to ensure consistent messaging and effective investment strategies.
Peter V.S. Bond [15:09]: “There must be a partnership between the people who are selling the advertising and the merchants who are making business decisions.”
Peter elaborates that without this alignment, conflicting messages can undermine campaign effectiveness, highlighting the need for cohesive strategies between all stakeholders.
5. Challenges Facing Retail Media
Peter identifies the overwhelming number of retail media networks in the US—approximately 200—with Amazon and Walmart dominating the market share.
Peter V.S. Bond [26:46]: “There are now somewhere in by all metrics what 200 retail media networks in the United States.”
He discusses the impracticality for brands to manage investments across so many platforms, predicting a trend towards consolidation where smaller or regional retailers may merge or partner to offer more integrated solutions.
6. Retail Media: US vs. Latin America
Comparing the US and Latin American markets, Peter notes that while Latin America is experiencing faster growth in retail media, its overall eCommerce penetration remains lower.
Peter V.S. Bond [30:43]: “I was walking retail stores and the level of in-store retail media penetration was substantially lower than when I saw it in the U.S.”
He points out that the adoption of digital screens in stores is gradually increasing in Latin America, driven by partnerships that enable retailers to invest in necessary technologies without bearing the full capital costs.
7. Emerging Trends in Retail Media
Peter highlights several key trends shaping the future of retail media:
a. Social Commerce
The integration of commerce within social media platforms is booming, with TikTok leading the charge by converting a significant portion of its users into active shoppers.
Peter V.S. Bond [32:07]: “TikTok, in a very short period of time, is able to convert 40% of its users to conduct commerce on their platform.”
b. Creator Economy
Influencers and creators are becoming pivotal in driving sales, often outperforming traditional celebrity endorsements in terms of impact and engagement.
Peter V.S. Bond [33:03]: “Creators... have more impact in many cases on driving sales of consumer products than George Clooney or anyone else that we know.”
c. Adaptive Consumer Content Consumption
With the shift away from traditional screens to mobile devices and emerging technologies, marketers must adapt their strategies to align with how consumers consume content.
Peter V.S. Bond [34:23]: “The challenge is understanding who your audience is and contextually, what kind of communication do you want to give to them, knowing what's their device of choice.”
8. Conclusion and Future Directions
The episode concludes with mutual appreciation between Peter and Lucas, reinforcing the importance of collaboration and continuous learning in the dynamic retail media landscape. Peter encourages listeners to engage with The CPG Guys podcast across various platforms and emphasizes the value of podcasting as a tool for passive knowledge acquisition.
Peter V.S. Bond [35:30]: “if you're not into podcasting, give it a try, because it's a mechanism that allows you to passively consume knowledge.”
Lucas expresses gratitude for the insights shared, acknowledging the podcast's role in advancing industry understanding and growth.
Notable Quotes:
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Peter V.S. Bond [08:06]: “Retail media is ultimately presenting brand advertisers with a better mechanism than they've ever had to measure the effectiveness of advertising.”
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Peter V.S. Bond [15:09]: “There must be a partnership between the people who are selling the advertising and the merchants who are making business decisions.”
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Peter V.S. Bond [26:46]: “There are now somewhere in by all metrics what 200 retail media networks in the United States.”
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Peter V.S. Bond [32:07]: “TikTok... is able to convert 40% of its users to conduct commerce on their platform.”
This episode offers a comprehensive exploration of the current trends and future directions in retail media, providing valuable insights for brands, retailers, and marketers aiming to navigate and leverage this rapidly evolving landscape.
