Walmart’s next omnichannel move
By Blue Chip
Walmart Connect is the retailer’s latest move in building an omnichannel media network
Last week, Walmart announced the rebranding of their retail media platform Walmart Media Group. The new entity, called Walmart Connect, will use Walmart’s vast first-party data to deliver omnichannel communication and connect brands to 150 million weekly shoppers. Its goal is to become a top-ten advertising platform over the next five years.
Walmart Connect has only provided an early glimpse of their key strategic areas. Though there’s clearly more work to be done before they release further details, we gathered our shopper marketing, retail and media thought leaders to gain early perspective on the announcement.
From Retail-Specific Media Solution to Omni-Programmatic Ad Buyer
The biggest news coming out of the release is the partnership with The Trade Desk, which will connect Walmart’s first-party data with a demand-side platform to place targeted ads on third-party sites. Conceivably, a brand will be able to micro-target Walmart shoppers through outside content channels via The Trade Desk and lead them towards display ads on Walmart’s digital channels through in-store media.
One question we’re pondering is what the nature of those communications through third-party media should look like. When working with the retailer-specific media of Walmart Media Group, communication was often a brand’s message tailored to align with the Walmart brand. When purchased through Walmart Connect, do those third-party channels elevate brand awareness and equities, or do they deliver a shopper-specific program message that drives the funnel towards shopping at Walmart?
Retailtainment: From Sell-in Solution to Media Opportunity
Retailtainment has always been a key differentiator in the way Walmart sought to deliver added value to shoppers. Manufacturers have often included retailtainment solutions that leveraged key corporate partnerships and properties and activated them as a unique benefit of shopping at Walmart. They also aided program sell-in. During the pandemic, Walmart has flexed their retailtainment muscles by developing breakthrough store events, like Walmart Drive-In and the Walmart Holiday Drone Show, which provide brands communication and sampling opportunities.
Walmart has also created its own digital entertainment channels through a partnership with digital media company, eko, which has created the Camp by Walmart family activity site and Cook Shop featuring Jamie Oliver, The Pioneer Woman, Patty Labelle and Tasty. Both of these platforms offer brands featured content opportunities.
We’re left wondering how much that dynamic will continue to shift. Will Walmart continue to look to suppliers, particularly those with properties and partnerships they can leverage to create new retailtainment opportunities? If the concepts are solid, Walmart could commandeer the manufacturer’s idea to sell as a bigger media opportunity to others. Or will Walmart assert creative control over retailtainment, only looking for brands to demonstrate solutions and buy their way in to the event-like media?
This isn’t the first time in recent years that Walmart has overhauled its ad business in the constant quest to keep pace with the rapidly changing shopper and media landscape. We have helped clients navigate these shifts, often being the first to pilot new self-serve ad formats and ad offerings.