Biggest Retail Media Mistakes

The Biggest Retail Media Mistakes Brands Make at Walmart (And How to Fix Them)

The biggest retail media mistakes brands make at Walmart are investing in Walmart Connect before stabilizing shelf fundamentals, running campaigns without inventory readiness, failing to optimize Walmart.com content and conversion, and measuring success using ROAS alone without tying media to velocity, in-stock, and profitability.

Retail media works best when layered on top of strong operational execution and a clear hero SKU strategy. Hatchery helps brands avoid these mistakes by aligning shelf fundamentals, in-stock performance, and Walmart Connect execution through HatchCore®, Hatch+®, HatchAnalytics®, and HatchDigital®.

Related Walmart Growth Guides

• Retail Media vs Shelf Fundamentals: What Actually Drives Walmart Growth
• Walmart Growth Strategy Resource Hub

Why Walmart Retail Media Is Different

Walmart Connect is a powerful growth lever.

But Walmart’s ecosystem is also highly operational.

That means retail media cannot be treated like a standalone marketing channel.

At Walmart, media must align with:

• In-stock performance
• Replenishment discipline
• Hero SKU velocity
• Walmart.com conversion quality
• Modular productivity

When media is disconnected from these signals, it creates volatility rather than sustainable growth.

The 8 Biggest Retail Media Mistakes at Walmart

These are the most common mistakes that prevent brands from scaling profitably.

Mistake 1: Running Walmart Connect Before Shelf Fundamentals Are Stable

Retail media increases demand.

If shelf fundamentals are weak, increased traffic does not convert efficiently.

Shelf fundamentals include:

• Clear category role
• Hero SKU focus
• Stable velocity
• Strong in-stock performance

When these are unstable, media spend becomes wasteful.

This is why retail media sits in Stage 4 of the Hatchery Walmart Acceleration Framework™.

It is an accelerator — not a foundation.

Mistake 2: Spending Without Inventory Readiness

This is one of the most damaging mistakes.

Media lift without inventory readiness creates:

• Stockouts
• Unstable velocity trends
• Wasted spend
• Buyer-visible performance decline

Proof signal

Brands that protect consistently high in-stock performance typically see stronger POS acceleration and more stable omnichannel results. Inventory readiness is the operational prerequisite for effective retail media.

If in-stock is unstable, retail media amplifies the problem.

Mistake 3: Treating Walmart.com Content as an Afterthought

Many brands focus heavily on ads and ignore content.

But content controls conversion.

If Walmart.com listings are weak, media spend produces:

• Impressions
• Clicks
• Low conversion
• Low ROAS
• Poor repeat performance

Walmart.com content must communicate:

• What the product is
• Why it matters
• What makes it different
• Why it is worth the price

Retail media cannot overcome unclear content.

Mistake 4: Advertising Too Many SKUs at Once

Walmart Connect performs best when focused.

Many brands dilute spend across:

• Too many items
• Too many pack sizes
• Too many variants

This reduces:

• Algorithm learning
• Conversion consistency
• Media efficiency

Retail media should prioritize:

• Hero SKUs
• Highest conversion items
• Items with strong in-stock stability

Media focus reinforces velocity.

Mistake 5: Measuring Success Using ROAS Alone

ROAS is a useful metric — but it is not enough.

Walmart growth requires alignment to:

• Velocity trends
• In-stock performance
• Category contribution
• Profitability
• New-to-brand acquisition

A campaign can have strong ROAS and still fail strategically if:

• It does not improve velocity
• It drives stockouts
• It is unprofitable after fees and deductions

The right approach is multi-metric.

Mistake 6: Ignoring New-to-Brand and Incrementality

Retail media is not only about efficiency.

It is also about acquisition.

Brands should evaluate:

• New-to-brand percentage
• Audience expansion
• Repeat behavior
• Incremental sales

Proof signal

Campaigns that drive healthy new-to-brand performance alongside stable conversion often signal true incremental growth, not just retargeting existing demand.

That is what healthy media impact looks like.

Mistake 7: Misaligning Media With Promotions and Pricing

Promotions can boost conversion.

But if media, promotions, and pricing are misaligned, performance becomes inconsistent.

Common problems include:

• Running media during low inventory periods
• Driving traffic to an item with a weak price story
• Promoting pack sizes that confuse shoppers
• Discounting in ways that weaken pricing integrity

Retail media must support pricing architecture — not disrupt it.

Mistake 8: Not Building a Weekly Performance Rhythm

Walmart retail media performance changes quickly.

Brands that win typically:

• Review campaigns weekly
• Adjust bids and targeting
• Monitor inventory and conversion
• Align media to velocity and in-stock signals

Without a weekly rhythm, spend becomes reactive.

Related Playbooks

• Walmart In-Stock and OTIF: The Hidden Growth Lever
• Walmart Shelf Strategy: How to Win Placement and Drive Velocity
• How to Improve Velocity at Walmart Without Slashing Price

What “Good” Looks Like for Walmart Retail Media

A strong Walmart Connect strategy has these characteristics:

Strategy

• Clear objectives tied to business outcomes
• Hero SKU focus
• Alignment to category role

Operations Alignment

• Inventory readiness confirmed
• Forecast lift modeled
• In-stock monitored during campaigns

Content Readiness

• Optimized titles and SEO
• Conversion-ready images
• Clear value proposition
• Strong review relevance

Measurement Discipline

• ROAS tracked
• But also velocity, new-to-brand, and profitability

Execution Rhythm

• Weekly optimization cadence
• Clear decision-making structure

Retail media becomes a growth multiplier when fundamentals are stable.

Step-by-Step: How to Fix Walmart Retail Media Performance

Here is a practical playbook.

Step 1: Stabilize Hero SKUs and In-Stock

Before scaling spend, confirm:

• Hero SKU velocity stable
• In-stock performance consistently high
• Replenishment discipline established

This is the foundation.

Step 2: Optimize Walmart.com Conversion

Fix:

• Titles
• Images
• Rich content
• SEO alignment
• Review relevance

Conversion improvement often produces more growth than increasing spend.

Step 3: Align Media to the Walmart Shopper Journey

Walmart shoppers convert differently than Amazon shoppers.

Your strategy should reflect:

• Value sensitivity
• Pack-size logic
• Omnichannel behavior
• Pickup and delivery patterns

Media should match how Walmart shoppers actually buy.

Step 4: Build a Full-Funnel Structure

Walmart Connect is not only Sponsored Products.

A strong strategy may include:

• Sponsored Products
• Sponsored Brands
• Display and awareness formats
• Audience targeting
• Retargeting

The right mix depends on category maturity and conversion readiness.

Step 5: Measure What Matters

Track:

• ROAS
• New-to-brand
• Conversion rate
• Velocity changes
• In-stock impact
• Margin impact

Walmart growth requires multi-metric discipline.

FAQs

Is Walmart Connect worth it for small brands?

Yes — if fundamentals are stable. Media works best when hero SKUs are clear, content is optimized, and inventory is protected.

What is the biggest retail media mistake at Walmart?

Running campaigns before in-stock and shelf fundamentals are stable.

Should brands invest in retail media before expanding distribution?

Retail media can support velocity, but it should not replace modular performance. Expansion is earned through repeatable performance signals.

How do you improve ROAS without cutting spend?

Improve conversion through content, focus spend on hero SKUs, align media to shopper behavior, and ensure inventory readiness.

How Hatchery Helps Brands Win With Walmart Retail Media

Walmart retail media is not a standalone tactic.

It is a system that must align shelf fundamentals, in-stock stability, and omnichannel execution.

Hatchery supports this through:

HatchCore®

Strengthens readiness across Sales, Supply Chain, and Digital so media acceleration does not outpace execution discipline.

Hatch+®

Builds the velocity and category strategy that retail media should amplify.

HatchAnalytics®

Provides actionable insights that connect media performance to velocity, in-stock, and business outcomes.

HatchDigital®

Built specifically to help brands win on Walmart.com and across Walmart’s digital ecosystem through:

• Optimized Walmart advertising for smarter ROI
• Comprehensive Walmart content and listing management
• Data-driven decisions powered by Walmart insights

Want to Know If Your Walmart Media Spend Is Actually Driving Growth?

Many brands invest in Walmart Connect and see activity — but not sustainable performance.

Hatchery can evaluate your Walmart.com conversion, media efficiency, and operational alignment to identify the highest-impact improvements.

Request a Walmart Growth Assessment

Recommended Next Steps

• Retail Media vs Shelf Fundamentals: What Actually Drives Walmart Growth
• Walmart In-Stock and OTIF: The Hidden Growth Lever
• Explore the full system: Walmart Growth Strategy Resource Hub
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