Sainsbury's Investor Day Presentation Deck
The most advanced retailers are successfully
scaling their digital media network capabilities,
especially in the US
Retailers are investing significantly in digital
media networks
ONectar360 2021
12
ROUNDEL
BEST
BUY
O TARGET
Media Network
criteol. <1>
Carrefour
LINKS
CVS pharmacy-
CMG
CHESAPEAKE DOLLAR TREE
Media Group
2019
criteol. Douglas
2020
2021
Walmart
TESCO
dunnhumby
Kroger
wg
Walmart
Walmart
Connect
66 33
Walmart
Kroger
66.93
BANK OF AMERICA
What we've heard - retailers
5 years from now we expect to be...in top 10 advertising platforms in the
US, ahead of... Hearst, Fox and Twitter¹
Kroger Precision Marketing...is projected to grow nearly 30% this year, well
beyond
the 16% for the rest of the media industry... We see the potential
for a multi-billion dollar Digital Media business over the next few years.²
What we've heard-analysts³
Advertising is a hidden potential profit stream that could generate $4b in
revenue/$2b in EBIT for Walmart by 2025.
With the ability to target marketing dollars towards specific customers, we
Morgan Stanley believe Walmart's Ad business could prove to be a powerful incremental profit
generator.
Market
Context
According to Kroger, 85% of CPGs surveyed noted that they plan to shift more
UBS ad dollars to retail networks. 95% say the spend is incremental to existing
shopper or trade programs.
Source: (1) Walmart investment community meeting 2021; (2) Kroger Investor day 2021; (3) Stock analyst reports, Bank of America, Morgan Stanley and UBS 2021
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