Home Marketers Retail Wags The Dog; Data Brokers Vs. The Military

Retail Wags The Dog; Data Brokers Vs. The Military

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Comic: Retail Media Walled Gardeners

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After years of running solely on The Trade Desk’s whitelabeled pipes, Walmart Connect is adding a second DSP partner: Yahoo DSP.

The new integration will “[provide] access to Walmart’s first-party data through a Walmart-controlled data enablement solution,” writes Ryan Mayward, GM and SVP of Walmart Connect, in a blog post.

On the supply side, Yahoo is leaning on Magnite as its integration partner. For now, inventory will only be available through VIZIO,  the smart TV manufacturer Walmart bought in 2024. More platforms and supply partners are in the works, apparently.

Walmart Connect has also been widening its connections in other ways. Last month, it announced Connect Select, a curated supply package that includes the programmatic usual suspects – FreeWheel, Index Exchange, Magnite and PubMatic – plus a direct deal with Paramount. It’s probably not a coincidence that a Walmart+ membership (its version of Prime) includes an ad-supported subscription to Paramount+.

These shifting alliances aren’t always bad for The Trade Desk. For example, TTD won an integration with Netflix a couple of years after the streaming platform selected Microsoft’s Xandr as its exclusive launch partner for ad serving and ad sales.

But exclusive doesn’t mean forever.

Tracking The Troops

Looks like location data is being used to spy on the military now.

The Department of Defense has received multiple reports of US adversaries targeting and tracking members of the military deployed in the field using commercially available location data, according to a document made public by Sen. Ron Wyden (D-Ore.) Thursday.

Because of the threat to troops in active battlefields, it’s time to “start treating the ad tech industry as a national security threat,” Wyden tells Reuters.

Using location data to track people for non-advertising purposes has become a cause célèbre for some regulators amid reports of police departments and immigration enforcement agencies buying location data from data brokers in order to aid investigations.

But now that the privacy threat extends to US troops, you can expect regulators to make a lot more noise about it.

And the threat isn’t only limited to the US military. Take this story from March, in which a French officer accidentally revealed the location of the French navy’s flagship aircraft carrier by allowing the Strava fitness app to log his location during his daily runs.

When the same data advertisers use to measure foot traffic can be used to track soldiers, so-called harmless tracking stops looking so harmless.

Conversion Therapy

OpenAI wants to put the “conversion” in “conversation.”

ChatGPT is now offering costperaction ads to select advertisers, which means these buyers only have to pay when someone completes a specific, predefined action after interacting with an ad, like making a purchase, downloading an app or signing up for a service.

Introducing CPA is a rite of passage for any fledgling ad business. Advertisers love outcomes. And by making this move, OpenAI is also signaling it wants ChatGPT to compete for the same performance dollars that now go to Meta and Google.

One agency exec with clients in the pilot put it like this: “Impressions or cost per click are what we call marketing objectives,” they tell Digiday, “but business objectives are what actually drive business outcomes.”

In other words, marketers would rather pay for results than vanity metrics.

This wasn’t a surprise. In early May, OpenAI’s head of monetization, Asad Awan, teased CPA bidding, noting that it was “in the plan” and “should be done soon.”

OpenAI also launched its tracking pixel a few months ago, rolled out an Ads Manager in beta, intro’d cost-per-click bidding and removed minimum spend commitments.

Hey, if you’re gonna go big on ads, you’ve gotta build for the whole funnel. With $102 billion in projected ad revenue by 2030 and an IPO potentially coming before yearend, OpenAI has a lot riding on this.

But Wait! There’s More!

Disney is preparing for a world without the Hulu app. [Business Insider]

Companies are making smaller, cheaper versions of their products to appeal to customers who are tired of rising prices. [WSJ]

Ad agency sources dish on what commerce media measurement gets right and what it gets wrong. [The Drum]

CNN files a copyright lawsuit against AI firm Perplexity. [CNN

YouTube announces new video podcast-specific features for premium users. [YouTube

You’re Hired!

Knower Tech hires Prebid.org president Mike Racic as managing director. [Digiday]

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