AmazonIts advertising business has maintained rapid growth, which makes it its biggest competitor in the retail sector.Walmart IncI'm jealous. Now, the latter also wants a piece of the pie.
Walmart Inc Media Group (Walmart media Group), Walmart Inc's advertising department, recently launched a new plan called Walmart Advertising Partners, according to foreign media reports. The program provides a self-service tool that allows advertisers to buy search ads on Walmart Inc's website and mobile apps. Prior to this, Walmart Inc's advertising department has been working directly with advertisers in the form of hosting services. Walmart Inc's plan was first reported by foreign media Business Insider in November last year.
Walmart Inc selected four e-commerce advertising technology companies-Teikametrics, Flywheel Digital, Pacvue and Kenshoo-as partners for the program. They will be the first to connect to Walmart Inc's API to help advertisers buy on their own, and four companies have been testing the technology for six months.
Similar to Amazon.Com Inc, Walmart Inc's ad is displayed at the top of the search and located according to the keywords of the shopper's search. Advertisers use online auction to bid for keywords, and online auction sets the advertising price according to the needs of advertisers. Amazon.Com Inc 、Facebook Inc、Alphabet Inc-CL C、Snap IncAnd other large advertising platforms also have API to manage the advertising spending of large advertisers.
Alexis Alexis Josephs, vice president of sales and media co-operation at Walmart Inc Media Group (Walmart media Group), said Walmart Inc had conducted beta tests on self-service advertising API with a small number of advertisers, including game maker Razer.
Razer partnered with Teikametrics to buy eight sponsored search events during Black Friday and Cyber Monday. The consumer goods (CPG) brand is currently Walmart Inc's largest advertiser, but Josephs says she also sees interest from advertisers from fashion, personal care, technology and telecommunications.
Since spinning off the advertising business from Triad last year, Walmart Inc has been building a team to recommend advertising services to advertisers using shopping data from about 160 million Americans, she said. E-commerce advertisers usually draw money from their shopper's marketing budget, which is usually smaller than the marketer's brand budget. In addition to the conversion rate, Amazon.Com Inc is also committed to providing marketers with a larger brand budget to measure brand awareness and loyalty.
"We are very seriously considering setting up an internal service platform to provide data services and create value for brands," she said. " "We know that 90% of purchases take place in brick-and-mortar retail stores, but most competitors only know what customers are doing online."
Josephs declined to disclose Walmart Inc's forecast for advertising revenue this year. It is estimated that Amazon.Com Inc's advertising revenue exceeded 10 billion US dollars in 2019.
In theory, advertisers will be able to analyze the performance of activities, including conversion rates, clicks and channel sales, through advertising technology companies partnered by Walmart Inc.
Walmart Inc also sells display ads in his stores. Currently, advertisers must buy through Walmart Inc's sales representative, although Josephs says it wants to allow advertisers to buy two types of ads through a self-help platform. Advertising technology company Criteo is currently in charge of advertising sales of Walmart Inc's display products. A spokesman for Criteo did not answer questions about their relationship.
Advertisers who sell products in Amazon.Com Inc and brick-and-mortar stores want to diversify advertising spending beyond Amazon.Com Inc. Kacie McKee, head of e-commerce at Wavemaker, told Business Insider in November that 70 to 90 per cent of the e-commerce budget went to Amazon.Com Inc.
"We have seen a large number of advertisers interested in raising awareness of their products and increasing sales on Walmart Inc's website," said Patrick Miller, co-founder of Flywheel Digital. "
Some marketers say Walmart Inc's move to integrate advertising into the company has been slow and hampered by problems, such as delays in advertising campaigns.
"they are so internalized in building their own processes that they don't know who to hire and who should work with intermediaries rather than directly with customers," Wavemaker's McKee told Business Insider in November.
Joseph says there are always minor problems with starting a new business.
"for 15 years, we have been trying to internalize a business that operates very differently," she says. " "what I hear more often is how excited marketers are and how good the people we meet in the supplier team are."