Facing Persistent Low ROAS Issues with Walmart Connect Sponsored Products on the Retail Media Network

Hey everyone,

• Context: We've been actively trying to diversify our ad spend beyond just Amazon, and Walmart Connect has been a major focus for us as a promising retail media network.
• Core Problem: However, we're consistently running into really disappointing Return on Ad Spend (ROAS) and uncomfortably high Advertising Cost of Sale (ACOS) specifically for our Sponsored Products campaigns on Walmart Connect.
• Specific Details:
  • We're getting decent impressions and clicks, which is good, but the conversion rates are just abysmal compared to what we see on other platforms.
  • Our campaigns are a mix of automatic and manual targeting, trying to cover all bases.
  • The budget is getting spent, which tells me the ads are running, but we're just not seeing the sales come through.
• Troubleshooting Steps Taken:
  • We've tweaked bids endlessly, both manual and automated strategies.
  • Refined keyword targeting, adding negative keywords, and focusing on exact matches.
  • Optimized our product content and landing pages on Walmart.com itself, thinking maybe it was an on-site issue.
  • Even A/B tested ad copy and imagery to see if that made a difference.
  • And, of course, analyzed search term reports religiously for new opportunities or wasted spend.
• Illustrative Data: Here's a simplified snapshot of what some of our campaigns look like, just to give you an idea of the struggle:

  Campaign: "Product X - Sponsored Auto"
  Spend: $500
  Impressions: 150,000
  Clicks: 1,200
  Conversion Rate: 0.8%
  Sales: $400
  ROAS: 0.8x
  ACOS: 125%
  
  Campaign: "Product Y - Manual Keywords"
  Spend: $350
  Impressions: 90,000
  Clicks: 800
  Conversion Rate: 0.6%
  Sales: $250
  ROAS: 0.7x
  ACOS: 140%

• Seeking Advice:
  • So, my main question is: What common pitfalls are we potentially missing with Walmart Connect that might be causing this?
  • Are there specific strategies for product discovery or category targeting on this retail media network that have worked exceptionally well for any of you?
  • Any insights into advanced bid optimization or budget allocation on this particular retail media network would be incredibly helpful.
• Closing: Anyone else facing similar challenges with Walmart Connect, especially with Sponsored Products? Anyone faced this before?

Thanks in advance!