What does Walmart’s new advertising business mean?
Walmart Media Group has announced an expanded media plan and name change. According to the company announcement, “Walmart Connect, formerly Walmart Media Group, is growing its offerings to provide unparalleled opportunities for partners to accelerate their connection to customers in a closed-loop, omnichannel environment. The business is growing fast and poised to become a top ten advertising platform.” See details here!
Walmart Connect, formerly known as Walmart Media Group (WMG) is focusing on three strategic areas:
- across Walmart.com and Online Pickup & Delivery (what WMG focuses on today).
In-store digital marketing
- TV walls and checkout screens
- Geo-fencing capabilities
- This shapes up to be the country’s largest out-of-home digital ad platform yet
Demand-side platform (DSP)
- Walmart has partnered with ad-tech, The Trade Desk, for a DSP platform
- We will be able to leverage Walmart’s first-party data for display advertising
What does this mean?
Walmart is holding true to their overarching omnichannel strategies. Expect to see Walmart continuing the merging of infrastructure to support the omni customer. For example, we know that in-store experiences like events and sampling will also eventually fall under that 2nd focus above of in-store marketing.
Ecomm/digital customers do not sit in a silo from an in-store customer – and eventually neither will operational functions, like marketing.
Walmart isn’t alone in the group of retailers seeking to create their own advertising businesses. Target, Kroger, CVS and Walgreens have seen the demand for first-party shopper data and alternatives to the major digital platforms increase.
EVP & Chief Customer Officer at Walmart, Janey Whiteside adds, “Combining the reach of Walmart’s vast omnichannel presence, the power of our closed-loop measurement, and the deep understanding of our customer base, we can bring brands measurably closer to their intended audience no matter how and where they shop.”
As Walmart Connect releases more information about marketing services and products offered in their expansion, we will think about how to seamlessly target the customer all the way from product research while at home to checking-out in-store.
We will keep you updated as we learn more from Walmart Connect in the next several months!