The article I have chosen talks about Walmart’s newest plan to boost its digital marketing. Walmart, the “world’s largest retailer” (Nausser, 2019) has always had ads in its stores. Companies such as Unilever and Kellog have ads in Walmart’s nationwide. Walmart also had previously looked to an outside firm (Triad) to sell as space on its website. Now, Walmart wants to do, “[bring] its digital ad business in-house” (Nausser, 2019) according to executives. In addition, Walmart will use data from its shoppers to sell marketing opportunities. The company had tried years ago to push online marketing, but was not a success. However, Doug McMillon (Walmart’s chief executive) is determined to create an ad business that will rival that of Amazon. According to Walmart’s chief merchandising officer Steve Bratspies, “[...] advertising can be more efficient than with competitors because marketers benefit from Walmart’s online and store purchasing data [...]” (Nausser, 2019). If a customer bought a certain item like a bicycle at Walmart, the shopper could see an add for a helmet on social media. The link from the ad would direct the customer back to Walmart.com. This can help the company achieve more revenue from online shopping (most of Walmart’s purchases are in-store). Also, building an ad network will help Walmart compete with Amazon in trade marketing. Trade marketing involves strategically putting products in the best locations to be noticed in stores. Many packed-good manufacturers use Amazon for trade marketing (since Amazon sells ads). The ultimate goals for Walmart’s Ad network is to attract more revenue online, allow suppliers and digital teams to work together, and to compete with Amazon.
This topic caught my interest mainly because I was shocked. I was under the impression that a major corporation like Walmart would not have problems advertising online. I have even seen Walmart ads online. But nevertheless, the article shows us how important is for every company to modify their marketing strategy. Even we’ll-known ones like Walmart. Otherwise, any opportunity to gain potential extra revenue is lost. Using shopper data clearly follows one of the 4 C’s; Customer. We have seen the usage of data for advertising purposes many times on social media. Sites like Instagram and Facebook formulate their algorithms for each individual user based on browsing (even shopping) history. This strategy can be beneficial for Walmart’s customers by decreasing the time needed to shop online. In addition, it allows Walmart to potentially gain repeated customers. Also, having suppliers and digital teams work together can help the company advertise better both in-store and online.
Works/Picture Cited: Nausser, Susan. “Walmart Joins Amazon in Chase for Ad Dollars”. Media and Marketing, The Wall Street Journal, Web, 26 February 2019. 1 March, 2019. https://www.wsj.com/articles/walmart-joins-amazon-in-chase-for-ad-dollars-11551200400?mod=searchresults&page=1&pos=12
I am just as surprised as you are. I would have thought a company like Walmart would have more loyal customers than its competitors because they compete with price, meaning their prices are typically lower than others. I do feel it is important and excellent that they have recognized that they need to need to make full use of their social media.
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