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WalMart Moving Digital Ad Sales In-House

WalMart Moving Digital Ad Sales In-House

In the latest move by WalMart in its prolonged competition with Amazon, the retail chain has moved its online ad sales in-house, as it has done so with its media sales recently. This will help expand that business, as WalMart is hoping to own a larger market share in online ad sales.

With 300 million shoppers visiting WalMart stores each month, and millions more shopping on their e-commerce site, the retailer’s audience surpasses Google, Facebook or Amazon, according to Forrester research cited in a recent Bloomberg report. Therefore, ad sales are, without a doubt, a massive revenue stream for the company.

Up until now, WalMart’s digital ad sales were handled by Triad – which is a part of GroupM’s performance marketing group. This move is expected to cause a lot f job cuts. Ad Age reported that Triad will be enforcing non-compete clauses in their contracts, thereby preventing employees from moving to Walmart Media Group.

With the current and estimated growth in WalMart’s ad sales, the company has a wealth of transactional and other customer data that could help brands optimize their campaigns. This year, Amazon is estimated to monetize 16% of the searches on its site, compared to Walmart’s 1%, according to Ad Age citing a report from Gartner’s L2.

In Q4 2018, WalMart reported a 1.9% increase in total revenue, reaching $138.8 Billion. The brand’s e-commerce sales jumped 43% and the company’s grocery pickup and delivery segment contributed to the e-commerce growth. WalMart also said it is embracing new technology, like robots to scan store-shelf inventory and clean floors, and VR devices to train employees.

Megha Shah
Megha Shah
A dreamer, traveler, aspiring entrepreneur and a bookworm beyond repair, Megha Shah is extremely fond of writing and has been doing so since she was a child. Apart from being a part-time writer, Megha is currently in college, pursuing B. Com. (Hons). Megha is an ardent follower of ‘Hardship, Hustle and Heart’ and firmly believes in the power of hard work and destiny!
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