We may have all heard of Walmart, but what makes it one of the top companies in 2020? A hint is that the company finally released Walmart ads to be monitored by marketers. The business mission that Walmart always seems to convey in its marketing campaigns is “to save people money so they can live better.” And that’s exactly what they’re able to do.
This is a business that was created to sell household items at discounted prices. As of this year, nearly 265 million customers and members visit the 11,500 stores within the 56 banners, in 27 countries and on eCommerce websites. The company is also proud to say they’ve totaled in $524 billion in revenue as of the 2020 fiscal year.
Walmart drives a large portion of the economy. Not only do they sell millions of products a year and come out with enormous profits, but they also employ over 2.2 million associates worldwide. They’re known for being leaders in sustainability, corporate philanthropy and employment opportunities. As of recently, they are the largest corporation to enforce that all employees and customers must wear masks when working or shopping in the establishment.
With their huge success just about everywhere else, it makes sense for Walmart to also expand into advertising. To better understand how Walmart is competitively entering a new industry and why marketers should consider this in their future strategies, we’ll look deeper into the process and benefits the company is yielding with this recent release.
Let’s Shift to Walmart Ads
Advertising is a hustling and bustling business, and now the biggest retailer in the US is here to join. Walmart believes that customers don’t just shop in store or online, they do both, and so the business wants to be able to cater to that in the best ways. By having Walmart hosting advertisements for marketers, these are the key features they hope to address.
Inspire the browsing customer: More modernly, shoppers tend to research before they begin purchasing products. In fact, 35% of Walmart’s in store customers browse online before entering the store. By catching these shoppers first with advertisements on the site, they’ll be more easily influenced when they make the final purchase.
Reach customers while replenishing supplies: When shopping at Walmart, the shopper is most likely there to restock on household necessities. The shopper’s loyalty is already with the store and so another persuasive ad will build up the current conversion rate.
Watch in-store and online sales results: The majority of sales within Walmart still occur within the stores, but it’s the online presence that allows for this large volume of sales to happen at all. Walmart is able to accurately measure the effect of each digital campaign and look into the end results from each shopper.
They analyze shopping behaviors and predict future purchases: Based on past purchases, Walmart is able to show the possible shopping behaviors that will come later. Walmart is one of the only companies that’s able to offer purchase-based targeting which elevates their advantages over their own competitors.
Walmart also uses Pacvue, which is a third party tool that manages not only Walmart ads, but also Instacart and Amazon. When using Pacuvue, these are some of the key features Walmart allows marketers to use with their eCommerce advertisements.
- Customized dashboard views
- Campaign creation and optimization
- Automated standard reporting
- Programmatic campaign management
- Keyword research
- Budget management
- AI optimizations
- Paid and organic SOV tracking
- Event tracking
- Retail data integration
By having these key features in hand, this gives the creator of each campaign immense control when programming each one into the system.
How do Walmart Ads Work?
When supplying a Walmart ad, they will appear on the first page of search results, category pages, and item pages that will drive traffic to the desired products. They are all cost-per-click advertisements, so marketers have the power to only pay when a shopper clicks on the initial ad.
This is a platform that is catered to the marketer’s needs. In addition to having the ads show up in many areas, they also may be formatted in different ways such as on product carousels, product listing ads and search in grid.
The following are a few of the ways that Walmart ads are designed to help the marketer in an effort to further expose the desired brands.
- Boost product sales
- Increase share of wallet
- Uncover new customers
- Grow and protect current market share
- Maximize profitable SKUs
- Improve brand and product visibility
- Launch new products or brand extensions
- Present products to mass audiences
Marketers are Offered Five Levels of Automations
In order to further the advertising process, marketers are also able to utilize the following five features to automate their campaigns.
Keyword Research and Harvesting: When creating ads, it’s about expanding reach. This is achieved with additional, related keywords that have low competition.
Campaign Tune-Up: Have the opportunity to receive suggestions to increase bids on the best-performing keywords. Look at best-performing keywords that have a high conversion rate as well as bids to lower and keywords to pause.
Bid Landscaping and Dayparting: Marketers will be able to narrow down outlier keywords that may be hurting their campaign. They’ll also be able to place bid modifiers on a higher performing page. Us dayparting to keep campaigns running when other competitors won’t be able.
Rule-Based Optimization: All best practices may go to work without the need to monitor. Marketers are able to increase or lower bids based on the most recent conversion rates, impressions, order volume etc.
AI-Powered Optimization: While a few campaigns have high traffic and competition, it may feel as if there’s changes needed every day. Save time making edits so that the real focus can be on the strategy of the campaigns.
Our Final Thoughts
Since Walmart is the largest retailer in the US and leads the way in several different avenues of the business, it’s a valuable move to have advertising campaigns on their own platform. Let us know what you think about the idea of Walmart ads and if you’ve incorporated any of your own business strategies with their help.