It’s official! Walmart has now joined the market in allowing self-serve advertising. So, what does this mean exactly?
Self-serve advertising gives an advertiser the ability to place their own advertisements without any assistance of an advertising sales representative. This essentially cuts out the need of a middle man and will reduce costs later.
Walmart is a huge company that is comparable to Target and Amazon when we look at some of the products and services that are offered. By taking a closer look at their new platform, we can better understand how this will pertain to advertisers and how this changes the game on what’s already on the market.
What Does Walmart’s Self-Serve Ad Platform Entail?
When Walmart rolled out this new platform, it was originally in response to finding different alternatives to Google and Facebook in order to compete and stay growing in the ever-changing market. In order to make this a reality for the company, Walmart rolled out with third-party deals to partner with brands like Flywheel Digital, Kenshoo, Pacvue and Teikametrics.
As a whole Walmart is aiming to better help advertisers target customers through automation and offline Walmart customer data. In order to create and further the success of this new endeavor, the company also brought on new executives and engineers for support.
This Gives Brands an Opportunity to Expand
In the world of online sales and marketing, consumer packaged goods (CPD), especially food and beverage, is actually one of the categories who are having a more difficult time transitioning into more of an online presence. There have been several brands that have continued to rely on brick and mortar structures, so this a great new outreach opportunity for those looking to expand and claim an online presence.
Since the pandemic has taken place this year, this may actually be a bigger opportunity for Walmart than anticipated, especially as more consumers are now fast-tracked to shopping online for their own safety.
Walmart Adds Convenience
Since the idea of marketing shelf space is becoming a thing of the past, brands are now looking to an online presence in order to stay relevant to the market. This not only lowers the cost, but it also allows for brands to access a platform that may reach new and current consumers from the comfort of the web.
In fact, more consumers have transitioned to online shopping, especially during the wake of the current pandemic. Self-serve ads on an online platform allow brands to tap into a new market in an expert way. They’re also able to find that this is an opportunity that will help them boost sales in a way that is increasingly higher than if they were to stay away from the platform.
Walmart Knows Online Platforms are Preferred
Since CPD is currently not as large as they could be, Amazon and other companies have already taken notice. In fact, CPD is becoming one of the fastest growing on Amazon Marketplace as more people are seeking to shop online than in stores. This also includes food and beverage. Walmart is now taking note and devising up their own way to compete.
Online shoppers are known for purchasing a product as soon as they find it. They’re normally in the market for instant gratification whereas brick and mortar shoppers run the risk of leaving empty-handed.
What’s more is that having an online presence allows for a bigger selection and more inventory because it’s stashed away in a warehouse instead of a store. There are now more opportunities for self-serve ads to take place and for marketers to reap the benefits using an online platform.
These are Some of the Other Brands that Offer this Service
Walmart is able to set themselves apart with this service because their capabilities promise to streamline and enhance advertisers’ capability to target ads to the right consumers. They’re also able to project the right times through the use of automation and Walmart customer data easily accessible online and offline.
Marketers are able to easily purchase, search and purchase sponsored product ads by participating in a direct bid auction-based marketplace, which was according to Marketing Dive.
With Walmart not being the first to launch their self-serve ad platform, these are some of the following companies that also offer a similar experience.
- App Samurai
- LinkedIn Ads
- Snapchat Ads
- Reddit Ads
- TikTok Ads
Walmart Ads vs. Amazon Ads
Amazon has always had the upper hand when it comes to the ad service they currently provide themselves. Walmart has entered the market realizing this information, so their advertising partners are giving advertisers control over their campaigns.
Walmart also owns and offers their own version of Buy Box. Customers can add items for purchase to their cart, and it’s valuable because the majority of sales such as Amazon’s come from this online device.
For brands to use this capability with Walmart, they must win placement and achieve top rankings in order to run performance ads.
Walmart’s attempt to compete with Amazon has led the company to essentially release an earlier version of Amazon advertising. This means there is much more room for improvement as time moves forward.
Walmart Also Launched Walmart Prime
To further the competition, Walmart even launched their own version of Prime called Walmart+ for only $98 per year. Extremely comparable to Amazon, it offers perks such as same-day delivery of groceries. It also offers merchandise, discounts on fuel at Walmart gas stations, and early access to deals. There’s even announcements that Walmart is attempting to run video streaming to the mix.
With both of these launches working together, this has the potential to make Walmart’s self-serve ad platform even more desirable. It brings in more customers and business for marketers. Walmart has also always positioned itself as a more affordable shopping platform. For those who may have lower incomes, Walmart creates an elevated opportunity over other companies who charge more for products.