The Supply Side: Rogers tech startup seeks to better connect online sales to consumers

Eric Howerton and JS Bull have teamed up to launch a new tech startup to help Walmart and its suppliers more easily increase advertising clicks within their retail media networks such as Walmart Connect.

Rogers-based AdFury.AI is a software-as-a-service platform. More specifically, it’s a retail media network search-based image and video advertising system that can connect automated systems used by major retailers, brands, advertising agencies, content management platforms and AI tools.

Howerton co-founded WhyteSpyder in 2010 as a content creator for suppliers selling on Walmart.com. The company then transformed into a technology company developing SKU+ Ninja to automate, optimize and manage online pages for suppliers selling to Walmart.com. Howerton capitalized on Walmart’s demands that suppliers provide detailed information about their products for online sales.

Bull joined the venture a few years later as co-owner and was CEO of WhyteSpyder SKU+ Ninja until it was acquired by London-based Ascential, an analytics and information firm, in November 2021 for an undisclosed amount.

The duo is now working together again at AdFury. They have brought on veteran tech talent formerly with Walmart, creative ad agency experience from Saatchi X, and a technology developer formerly with WhyteSpyder. The startup’s office is in Rogers in Pinnacle Hills, above Theo’s at 3300 S. Market St.

Bull said the tech startup came about after listening to client needs and talking with retailer media networks about a tool that could help improve ad relevance. The goal was not to replace creative agency work but to facilitate it with research that creates connections with shoppers. AdFury software can connect directly with Walmart’s application programming interface or API.

Howerton said when a brand selling on Walmart.com subscribes to AdFury, the software will pull in ad campaigns already running through Walmart Connect, which is Walmart’s internal advertising agency. The campaigns on Walmart Connect have keywords associated with them. He said AdFury will pull in the keywords, images and videos associated with the campaign on Walmart.com. He said the service works for first-party or third-party marketplace sellers.

Howerton said a typical Walmart.com ad will include 12 different sizes for each ad unit. The creative teams must physically replicate the ad into the required sizes. Also, each ad will have 10 to 20 keywords assigned to it. Because of the work involved, Howerton said creative teams will often send out ads that use up to 10 or more keywords. Using AI the AdFury system can easily replicate the ad units in various sizes using only the most relevant keywords.

He said AdFury does not replace the creative team, but it does reduce what may be redundant actions, allowing them more time to be creative. He said it also raises the performance of the ad campaign through more precise targeting because it appeals to those most interested in making a purchase.

“We are excited about this launch because our technology simplifies the back-office advertising protocol for Walmart.com and marketplace sellers who want to advertise on Walmart Connect,” Howerton said. “We are in stealth mode now with a few partners testing the software. We will launch officially on March 18 at the Adobe Summit in Las Vegas. We will be signing up suppliers and agencies for beta testing of AdFury at the event.”

AdFury executives will also attend on March 25 the Shop Talk conference in Las Vegas as one of 10 exhibitors in the “new markets” section. The company hopes to sign up additional suppliers or agencies for beta testing at that retail event.

“We believe relevance is an eternal, universal, human and programmatic demand; and that technology empowers brands to communicate precisely with shoppers, at scale. We also believe that images and videos deliver the most meaningful product stories that resonate with shoppers at their moments of purchasing decisions,” Bull noted.

The launch of AdFury.AI correlates with the rapid growth in retail media network advertising. Walmart Connect in the U.S. generated 24% growth in ad revenue in the fourth quarter ended Jan. 31. The retail giant said its overall advertising revenue totaled $4.4 billion for the year, a 27% annual increase. The U.S. growth in revenue is attributed to a 50% uptick in marketplace advertisers. Walmart’s global marketplace has expanded to include the U.S., Chile, Canada and Mexico.

Ryan Monigan, vice president of omni retail at Flywheel Digital, said it’s undeniable that introducing and scaling retail media networks such as Walmart Connect or Target’s Roundel changed the game for brands and retailers. He touts the importance of incorporating AI-driven software automation like AdFury for brands wanting to elevate their return on ad investments.

“Anyone trying to reach consumers in new and innovative ways should be investing time and money into search campaigns. But anyone who made that initial investment has been challenged by the next step in making that investment efficient,” Monigan said.

He said companies that can incorporate AI into the tools they are using to manage retail media investments will allow them to play chess while their competition is playing checkers.

Howerton said AdFury software will be sold as a subscription with an option for some percentage of the sales increases that the system generates. Pricing models are being discussed now by the company principals.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics, and is sponsored by HRG.