Walmart is making its moves to compete against the retail giant, Amazon.
Walmart Media Group is gearing up to launch its first self-serve advertising tool along with an API next year. Walmart has long relied on its relationship with sales reps but it looks like it’s not going to stay that way for long. The company has been busy hiring marketing partners and acquiring ad tech companies to support its goals in growing its advertising business.
What you need to know about Walmart’s upcoming ad tool
Advertisers and marketers who wish to buy Walmart ads need to speak with human reps. The company hasn’t been able to play with the major leagues in the advertising industry partly because of its position in the mix. Other big companies including Facebook, Amazon, Google, Pinterest, and SnapChat all who all use APIs to connect with their marketers. APIs let advertisers have free reign for their ad prices and ad spend.
Similar to Amazon’s API, advertisers who wish to put up ads in Walmart can buy search and display ads. Wavemaker’s director of e-commerce, Kacie McKee, noted that Walmart is pushing itself to be like Amazon as it slowly builds the infrastructure to become a big name in media. Walmart is already testing the self-serve tool with CPG advertisers and its planning to make it available early next year.
Walmart’s media effort
Walmart ended its partnership with Triad last February and since then, it’s been busy improving its advertising program. It acquired Polymorph Labs, a San Francisco ad-tech startup to help deliver full campaigns and reports to brands.
The addition of Polymorph Labs strengthened Walmart Media Group’s ad platform. This acquisition has helped the company take full advantage of its cost per click and cost per impression metrics as it evaluates real-time bids from buying models.
What does this mean?
As far as the ads industry experience goes, Amazon is much more advanced as compared to Walmart. Amazon already has search tactics that enable marketers to target their competitors or target their specific audiences. As of now, around 70%-90% of the overall ad spend of e-commerce businesses go to Amazon.
With Walmart’s new self-serve tool, advertisers may soon consider investing and putting their ad spend to Walmart instead of putting it all in Amazon. A few years from now, Walmart may become a worthy competition of Amazon in the advertising industry.