Walmart Partnership Impact
Q: How is the Walmart partnership driving redeemer growth?
A: The Walmart partnership is significantly contributing to redeemer growth across the network. We're seeing growth in redeemers from Walmart, and we expect this to continue as awareness of the loyalty programs increases. The program has been available to all DotCom accounts for less than a year, so we're still in the very early innings.

Brands Becoming More Promotional
Q: Are brands more willing to promote due to the current environment?
A: Yes, brands are becoming more promotional as consumers focus on saving money on core nondiscretionary items. With price increases over the past couple of years, some consumers are considering private labels, and brands are using targeted promotions to retain or win back customers. We can demonstrate these trends to our CPG clients, showing that promotions lead to consumers trying, loving, and repeatedly buying products.

Adding New Retail Publishers
Q: What is the cadence for bringing new retail publishers onto the network?
A: We're working to make it easier and quicker for publishers to join the network. Traditionally, it has taken about 12 months to ramp up a new publisher, but we're aiming to make this process more efficient. As we add more publishers, the network effect should encourage others to join more quickly.

Consumer Focus on Essential Staples
Q: What insights do you have on consumer redemption patterns?
A: Consumers are really hurting and are focused on saving money on core nondiscretionary items. We're seeing high redemption rates for essential staples that are in almost every American basket. We lead with these high-frequency items, and once consumers engage, they're more likely to explore other offers.

Targeting Strategies and AI Integration
Q: How are you enhancing targeted rewards and leveraging AI?
A: Targeting is a major strategic focus. We're enabling targeting network-wide to create more efficiency and drive incremental sales by presenting the right offer to the right consumer at the right time. This relies on our data and understanding each person's propensity to buy. The promise of AI is significant here, and we're building AI-enabled client tools, focusing on this especially in the back half of the year.

Growth in General Merchandise
Q: How is the general merchandise category developing?
A: Our general merchandise business, though still small, is growing rapidly, running at more than 12 times last year's levels. We're adding new brands outside of fast-moving grocery, like Jockey and Castrol. While these don't have a huge short-term impact, we're excited that they understand our value proposition. To make this a larger category, we need to demonstrate high efficiency and a good return on advertising spend to attract more brands.

Impact of New Publishers on CPG Budgets
Q: How do new retailers joining affect CPG budgets?
A: When major retailers join, we signal to our brand partners about the additional capacity, which can unlock incremental dollars. We've seen annual budgets expand mid-year as clients get excited about the efficiency of our platform or the rollout of significant new publishers like Walmart. It depends on how material the new publisher is relative to the current network size.

Real-Time Feedback and CPA Model
Q: How does your model provide real-time feedback to advertisers?
A: We offer an opportunity to create an ever more real-time feedback signal, allowing brands to optimize campaigns based on actual in-store sales, which is hard to do with traditional digital advertising. This helps brands arrive at the correct net price based on consumers' willingness to buy, and AI plays a significant role in enhancing these capabilities.

Scaling General Merchandise Retailers
Q: When will you bring more general merchandise retailers onto the network?
A: As we build a critical mass of offer content in categories like pet, toys, home improvement, and auto, it becomes more attractive to bring in specialty retailers. Having a strong relationship with mass retailers like Walmart, which carry more than grocery, helps us build up offers and approach specialty retailers. Our priority has been retailers with high overlap in high-frequency items, but we're starting to see opportunities with specialty retailers.

Walmart Cash Redemption Visibility
Q: Do you see trends in how consumers use Walmart Cash?
A: We focus on driving redemptions of manufacturer offers on Walmart properties that turn into Walmart Cash. The disposition of that cash is controlled by Walmart, and we don't have visibility into how consumers use it. However, we generally see that a large and thriving e-commerce presence benefits us as we engage shoppers during their purchase journey.