Walgreens is the latest retailer to launch a media network in a bid for ecommerce channel ad spend

<bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><p>This week, Walgreens&nbsp;<a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9uZXdzLndhbGdyZWVucy5jb20vcHJlc3MtcmVsZWFzZXMvd2FsZ3JlZW5zLWludHJvZHVjZXMtd2FsZ3JlZW5zLWFkdmVydGlzaW5nLWdyb3VwLXdhZy1hLW5ldy1hZHZhbmNlZC1kYXRhLWFuZC10ZWNobm9sb2d5LWxlZC1yZXRhaWwtbWVkaWEtb2ZmZXJpbmctZm9yLWJyYW5kcy10by1kZWxpdmVyLXBlcnNvbmFsaXplZC1leHBlcmllbmNlcy10by10aGVpci1iZXN0LXNob3BwZXJzLmh0bQ/5d233c18f730436f2414784fBb25cb90f" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9uZXdzLndhbGdyZWVucy5jb20vcHJlc3MtcmVsZWFzZXMvd2FsZ3JlZW5zLWludHJvZHVjZXMtd2FsZ3JlZW5zLWFkdmVydGlzaW5nLWdyb3VwLXdhZy1hLW5ldy1hZHZhbmNlZC1kYXRhLWFuZC10ZWNobm9sb2d5LWxlZC1yZXRhaWwtbWVkaWEtb2ZmZXJpbmctZm9yLWJyYW5kcy10by1kZWxpdmVyLXBlcnNvbmFsaXplZC1leHBlcmllbmNlcy10by10aGVpci1iZXN0LXNob3BwZXJzLmh0bQ/5d233c18f730436f2414784fBb25cb90f&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNFkrhGo76k3bwO_expAcxfMWjr-Eg">launched</a> its media network Walgreens Advertising Group (WAG), offering ad placements on Walgreens' digital properties and other brand-safe third-party websites.</p><p><img style="float:right;" src="https://static5.businessinsider.com/image/5fca475d037cbd0018613cc8-1020/eCommerce Channel Ad Spending.png" border="0" alt="Walgreens looks to capitalize on the $17.37 billion ecommerce channel ad spending market" data-mce-source="Insider Intelligence"></p><p>These services have already been available to select brands for more than a year, but a Walgreens executive <a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly93d3cuYWR3ZWVrLmNvbS9wcm9ncmFtbWF0aWMvc2F5LWhlbGxvLXRvLXdhbGdyZWVucy1hZHZlcnRpc2luZy1ncm91cC10aGUtbGF0ZXN0LXJldGFpbC1tZWRpYS1uZXR3b3JrLw/5d233c18f730436f2414784fB8e744e29" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly93d3cuYWR3ZWVrLmNvbS9wcm9ncmFtbWF0aWMvc2F5LWhlbGxvLXRvLXdhbGdyZWVucy1hZHZlcnRpc2luZy1ncm91cC10aGUtbGF0ZXN0LXJldGFpbC1tZWRpYS1uZXR3b3JrLw/5d233c18f730436f2414784fB8e744e29&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNENn01AzCvN6zfy5_g9JKCo6VeW2g">told </a>Adweek that the official launch of WAG shows the company's intentions to further invest in the space. The media network will capitalize on first-party data from Walgreens' loyalty program to provide targeting options and analytics to media buyers and will include access to its proprietary demand-side platform (DSP) as well.</p><p>Retailers are investing in proprietary media networks to capitalize on the growth of ecommerce channel advertising. New players like <a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly93d3cubWFya2V0aW5nZGl2ZS5jb20vbmV3cy9pbnN0YWNhcnQtc3RhcnRzLXNlbGYtc2VydmUtYWQtcGxhdGZvcm0tdG8tY29ubmVjdC1icmFuZHMtd2l0aC1zaG9wcGVycy81Nzg2MzYv/5d233c18f730436f2414784fBbb65e161" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly93d3cubWFya2V0aW5nZGl2ZS5jb20vbmV3cy9pbnN0YWNhcnQtc3RhcnRzLXNlbGYtc2VydmUtYWQtcGxhdGZvcm0tdG8tY29ubmVjdC1icmFuZHMtd2l0aC1zaG9wcGVycy81Nzg2MzYv/5d233c18f730436f2414784fBbb65e161&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNED0fPkDpeO3Cp4rtK8Mb3TK6o5Qw">Instacart</a>, <a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9kaWdpZGF5LmNvbS9tYXJrZXRpbmcvY3ZzLWlzLXJlYWR5aW5nLXRoZS1sYXVuY2gtb2YtYS1uZXctYWQtbmV0d29yay8/5d233c18f730436f2414784fBc3da7a68" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9kaWdpZGF5LmNvbS9tYXJrZXRpbmcvY3ZzLWlzLXJlYWR5aW5nLXRoZS1sYXVuY2gtb2YtYS1uZXctYWQtbmV0d29yay8/5d233c18f730436f2414784fBc3da7a68&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNG0WIYjTpDMx2B4zoWSfc2Rm9mSTg">CVS</a>, and&nbsp;<a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9hZGFnZS5jb20vYXJ0aWNsZS9jbW8tc3RyYXRlZ3kvaG93LWhvbWUtZGVwb3QtcGxhbnMtZ3Jvdy1pdHMtbWVkaWEtbmV0d29yay8yMjk1NjYx/5d233c18f730436f2414784fB8a3b50d3" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9hZGFnZS5jb20vYXJ0aWNsZS9jbW8tc3RyYXRlZ3kvaG93LWhvbWUtZGVwb3QtcGxhbnMtZ3Jvdy1pdHMtbWVkaWEtbmV0d29yay8yMjk1NjYx/5d233c18f730436f2414784fB8a3b50d3&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNGcErv2-Nqi3UuAkrnR_LhqmdQR4g">The Home Depot</a>&nbsp;have entered the retail media market this year, while Walmart and Target launched their networks over the past two years.</p><p>Building out advertising as a secondary high-margin revenue stream is particularly appealing since first-party shopping data offers unique advantages. The pandemic-induced ecommerce boom has only accelerated this trend; we currently&nbsp;<a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9mb3JlY2FzdHMtbmExLmVtYXJrZXRlci5jb20vNWY4ZjEzM2Q4YjYzZTkwNTVjMWFhNGFlLzVmOGU0ZDI5YzNjZGE1MDFkODMwMThjOQ/5d233c18f730436f2414784fB30bf10ad" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9mb3JlY2FzdHMtbmExLmVtYXJrZXRlci5jb20vNWY4ZjEzM2Q4YjYzZTkwNTVjMWFhNGFlLzVmOGU0ZDI5YzNjZGE1MDFkODMwMThjOQ/5d233c18f730436f2414784fB30bf10ad&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNFZVGpvicFb6zLWdCxI-0hkLM8Nug">estimate</a>&nbsp;that US ecommerce channel ad spending will grow 38.8% this year to $17.37 billion and make up 12.2% of digital.</p><p>Though the majority of ecommerce channel advertising is concentrated on Amazon, other platforms will see strong growth.&nbsp;Amazon will capture more than&nbsp;<a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9mb3JlY2FzdHMtbmExLmVtYXJrZXRlci5jb20vNWY4ZjEzM2Q4YjYzZTkwNTVjMWFhNGFlLzVmOGU0Zjk4YzNjZGE1MDFkODMwMThjYg/5d233c18f730436f2414784fBa321996f" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9mb3JlY2FzdHMtbmExLmVtYXJrZXRlci5jb20vNWY4ZjEzM2Q4YjYzZTkwNTVjMWFhNGFlLzVmOGU0Zjk4YzNjZGE1MDFkODMwMThjYg/5d233c18f730436f2414784fBa321996f&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNFbHxnW2aANTqpC7_yJjUuCsoclmQ">75%</a>&nbsp;of ecommerce channel ad spending this year, but advertisers will increase spending on other platforms by&nbsp;<a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9mb3JlY2FzdHMtbmExLmVtYXJrZXRlci5jb20vNWY4ZjEzM2Q4YjYzZTkwNTVjMWFhNGFlLzVmOGU1NDZmYzNjZGE1MDFkODMwMThkMg/5d233c18f730436f2414784fB8a689237" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9mb3JlY2FzdHMtbmExLmVtYXJrZXRlci5jb20vNWY4ZjEzM2Q4YjYzZTkwNTVjMWFhNGFlLzVmOGU1NDZmYzNjZGE1MDFkODMwMThkMg/5d233c18f730436f2414784fB8a689237&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNGo0zrWma4ylq1Pisl_rkEikbOQSA">29.4%</a>&nbsp;to $2.88 billion.</p><p>The recent launch of&nbsp;<a href="https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9wcmVzcy5hYm91dGFtYXpvbi5jb20vbmV3cy1yZWxlYXNlcy9uZXdzLXJlbGVhc2UtZGV0YWlscy9pbnRyb2R1Y2luZy1hbWF6b24tcGhhcm1hY3ktcHJlc2NyaXB0aW9uLW1lZGljYXRpb25zLWRlbGl2ZXJlZA/5d233c18f730436f2414784fB50efb9a9" target="_blank" rel="noopener" data-saferedirecturl="https://www.google.com/url'q=https://e.insiderintelligence.com/click/22283683.4/aHR0cHM6Ly9wcmVzcy5hYm91dGFtYXpvbi5jb20vbmV3cy1yZWxlYXNlcy9uZXdzLXJlbGVhc2UtZGV0YWlscy9pbnRyb2R1Y2luZy1hbWF6b24tcGhhcm1hY3ktcHJlc2NyaXB0aW9uLW1lZGljYXRpb25zLWRlbGl2ZXJlZA/5d233c18f730436f2414784fB50efb9a9&amp;source=gmail&amp;ust=1607173782358000&amp;usg=AFQjCNFdNb_rKVGmZqlkxsSfZSGuGh_05w">Amazon Pharmacy</a>, which offers home delivery for prescriptions, gives Walgreens an additional incentive to invest in its digital ad business. If Amazon Pharmacy can help shift consumer prescription habits to digital platforms, Walgreens will likely benefit, with the WAG network bolstered by an increase in digital ad spending from pharmaceutical companies.</p><p><strong><em>Want to read more stories like this one' Here's how you can gain access:</em></strong></p><ol><li>Join other Insider Intelligence clients who receive this Briefing, along with other Media, Advertising, &amp; Marketing forecasts, briefings, charts, and research reports to their inboxes each day. <a href="https://www.insiderintelligence.com/request-info-em/'IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=bottom_bullets&amp;itm_term=enterprise_text_link-walgreens-launches-media-network-for-ecommerce-channel-ad-spend-2020-12">&gt;&gt;&nbsp;<strong>Become a Client</strong></a></li><li>Explore related topics more in depth. <a href="https://store.businessinsider.com/collections/digital-media'IR=T&amp;itm_source=businessinsider&amp;itm_medium=content_marketing&amp;itm_campaign=briefing_post&amp;itm_content=bottom_bullets&amp;itm_term=store_text_link-walgreens-launches-media-network-for-ecommerce-channel-ad-spend-2020-12">&gt;&gt;&nbsp;<strong>Browse Our Coverage</strong></a></li></ol><p><em><strong><a href="https://subscriptions.emarketer.com/">Current subscribers can access the entire Insider Intelligence content archive here.</a></strong></em></p><p><a href="https://www.businessinsider.com/walgreens-launches-media-network-for-ecommerce-channel-ad-spend-2020-12#comments">Join the conversation about this story &#187;</a></p>
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