To utilize Walmart ads means that advertisers are able to have access to one of the frontrunners for retail and e-commerce. Although Walmart is late to the game for an advertising platform, the company was able to release one successfully in order to compete with others such as Amazon and Google.
So, how much do these Walmart ads cost?
With such a competitive, yet successful platform, it can be difficult to digest the costs or how it operates. This is simply because no platform is quite the same. Taking a closer look at the costs and the operational aspects, advertisers will be able to better understand how they’ll be investing ad dollars for the brands they represent.
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Why Advertise with Walmart Ads?
First and foremost, why should brands advertise with Walmart?
The main reason is the shopper’s overlap. According to Walmart Media Group, over 57% of Amazon buyers also shop on Walmart.com and a whopping 90% of Americans shop at Walmart. By advertising on Walmart, brands have the ample opportunity to increase their market share. More exposure will increase the possibility for shoppers to purchase the product.
These are the following additional reasons to advertise with Walmart.
- Support an organic presence
- Boost new seller performance
- Aid struggling SKUs
- Have the opportunity to take advantage of seasonal spikes
How Does Walmart Auction Work?
For Walmart ads to run successfully, consider hiring a Walmart ads agency to manage your auction ads. In fact, they run off a first bid auction system, meaning the winning bid in an auction is the max cost per click (CPC) bid. Competitors like Amazon only use second bid auction, meaning the winning bid could only be a penny over the second-highest bid amount.
There is a checklist for winning ad placement. If the following is achieved, then the advertiser will win the advertising spot for his brand.
- Appear in the top 128 organic search results
- Winning the Buy Box
- Rank lower than or equal to the organic search ranking of the desired product
- Be the same product type of at least one non-sponsored item in the top 20 search results
Walmart Ads Minimum Costs
While Walmart advertising costs will vary per advertiser, it’s good to get an idea of how much to budget with the idea of a base cost. Walmart Marketplace actually offers more strict standards when it comes to budgeting. However, the following were made to ensure a good return on investment.
Self-Serve Campaign: Requires $1,000 monthly spend with $100 daily cap
Managed Campaign: Requires a $25,000 commitment
However, if a company chooses to partner professionally with an advertiser agency, the following rates can be expected.
- There is a one-time setup cost of $3750 to up to more than $15,000
- There is a monthly ad spend of $5,000 to up to more than $50,000
- There is a monthly management cost of $1,000 to more than $6,000
The rationale for the costs to be this way is the fact that a professional ad agency will come with additional costs. They most likely have several years of experience and have a successful portfolio to set themselves apart from others.
Walmart Ads Average CPC & CPM
The costs for these also vary. This is especially true as advertisers are only charged when the ad is officially clicked on or interacted with. These are the following ad options.
- Native banner ads on category home page
- Landing page ads under certain product categories
- Sponsored ads in a product grid
All three of these methods are utilized so that shoppers are given different options and shown other ways to interact with the ads. A lot of the time these aren’t noticeable ads and therefore, shoppers are more likely to interact with them if they fit their needs.
How Walmart Ads Compares to Other Platforms
When using Walmart ads, it’s important to know that there are actually quite a few differences than if you were to advertise on Google or Amazon. Here are some of the following ways Walmart is able to stand out and operate differently than its top competitors.
- On the online platform, organic listings are actually impacted by advertising performance. There is an option to push higher organic listings if there are ads that offer the same product and achieve clicks and views.
- Did you know that brands online aren’t given their own exclusive page like most other e-commerce platforms? If a shopper is on a product detail page and clicks the brand, a google search is done. On the other hand, Amazon sends the shopper directly to the brand page.
- Search functionality isn’t on the top like it may be for other marketplaces. It can actually be more difficult to be discovered organically if advertisers don’t have boosters to help them out. An example of a booster might entail a 2-day shipping badge.
So are the costs for advertising on Walmart worth the potential return on investment?
While no cost is truly the same, Walmart operates on the principle that the prices listed for their campaigns are so that a more positive income may be fully achieved. Walmart is one of the top retailers and moving in this innovative way shows that the company won’t be going anywhere anytime soon.
What do you think about the Walmart ad costs? Have you used Walmart advertising in a previous campaign? Let us know your thoughts as we’d love to hear more from our fellow advertisers.