ADVERTISER CAMPAIGN MANAGEMENT

Walmart takes another page from Amazon, reports 95% increase in U.S. advertising sales

Walmart | August 19, 2021

Walmart reported a 95% increase in its U.S. advertising sales in the second quarter, and said its number of active advertisers rose more than 175%, as more companies and brands paid to advertise their products to its customers, online and in stores.

The advertising boom was just one of the factors that gave Walmart’s earnings call a familiar ring to anyone who’s tuned into Amazon’s business.

“The phrase ‘serving customers’ has traditionally meant one thing at Walmart,” said Walmart CEO Doug McMillon on the earnings call, referring to traditional retail sales. “But today It includes serving marketplace sellers, our advertising partners, and those that want to use our fulfillment services or proprietary software.”

Walmart’s actual ad sales numbers weren’t large enough to require disclosure in its earnings report Tuesday, but Amazon has shown the value of this approach.
Reporting its own second quarter earnings, Amazon said its “Other” category, which primarily consists of advertising, generated $7.9 billion in sales. That was up 87% from the prior year. It’s part of a larger trend of Amazon making more money doing things other than selling products.
UBS analyst Michael Lasser pressed Walmart executives on the call to reveal more about the scale and potential of their ad business, without much success.
Lasser estimated that advertising sales in e-commerce represent about 5% to 10% of GMV, the gross merchandise value of products sold. He surmised that Walmart’s ad business might be in a nascent phase, perhaps 1% to 2% of GMV, and asked if ad dollars are coming at the expense of other revenue from Walmart’s vendors.

Brett Biggs, Walmart chief financial officer, didn’t confirm or deny Lasser’s speculation but spoke to the larger direction of Walmart’s advertising business.
“We rebranded the business from Walmart Media Group to Walmart Connect last year, and that was just to make sure that it was very clear that this opportunity is going to help us connect buyers, sellers, suppliers and customers all together in a way that’s accretive to the customer experience,” Biggs said. “And as long as we do that, I will remain very, very bullish on the growth potential in this business.”

Overall, Walmart reported total quarterly revenue of $141 billion, up 2%, with profits of $4.3 billion for the second quarter of its 2022 fiscal year, ended June 30, 2021.
For the quarter, Walmart’s e-commerce sales growth in the U.S. dropped back into the single-digits as more customers returned to physical retail stores.
Its U.S. e-commerce business grew 6% in the second quarter, to about $11 billion. That compared to year-over-year growth of more than 90% a year ago, at the height of the pandemic.
But looking at the long-term trends, Walmart was able to maintain much of the e-commerce headway that it made during the past year.
Its U.S. e-commerce sales are up 103% compared to two years ago. E-commerce now represents more than 11% of the company’s $98.2 billion in U.S. net sales, vs. 6% of its $85 billion in U.S. net sales for the same quarter two years ago.
McMillon said Walmart wants to reach a point where it’s “completely indifferent” as to where and how customers shop, in terms of its revenue and profits.
“I think some people view stores these days as boring,” McMillon said. “We don’t.”

Spotlight

Engaging in social media can be a highly effective way for MSPs to boost their market presence, expertise and market share. However, success in social media initiatives is anything but assured; it takes developing a sound strategy and executing on a sustained basis to yield dividends. This paper provides the background and guidance MSPs can use to build an effective social media strategy, one that yields real business results.


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INNOVO Leverages Powerful New Creative and a More Effective Approach to TV Advertising to Help Revolutionize Women’s Health

INNOVO® | September 27, 2022

Although one in three women experience Stress Urinary Incontinence (SUI) at some point in their lives, public and media taboos around the topic have exacerbated the physical and mental stress caused by bladder leaks, while common remedies like pads and adult diapers are often considered inconvenient and less than comfortable. To provide women the opportunity to live life free from bladder leaks in as little as three months, consumer medical company Atlantic Therapeutics paired compelling new creative with a smart approach to television advertising to boost awareness and adoption of INNOVO®, a non-invasive solution that treats the cause of bladder weakness in women via a unique wearable technology approved by the FDA with no prescription needed. “As we moved into 2022, we recognized our early progress in building a disruptive brand in a huge category dominated by strong incumbents,” said Susan Trent, CEO of Atlantic Therapeutics. “As we moved into 2022, we recognized our early progress in building a disruptive brand in a huge category dominated by strong incumbents,” said Susan Trent, CEO of Atlantic Therapeutics. “To accelerate that progress, we needed to deliver a highly persuasive message that motivated women to change their beliefs and behaviors around bladder leaks. And as a scaling start-up business, media efficiency was a critical element in landing the message to the right audience. That was the challenge we set to our partners.” For a complete refresh of its commercials, INNOVO® enlisted Quirk Creative, an award-winning advertising agency specializing in video-based campaigns. Quirk Creative produced new spots that communicated the superior and clinically proven benefits of the innovative, pelvic-floor-muscle-strengthening shorts in a smart, sensitive and informative manner that both educated and engaged viewers. “As one of the many brands we represent in Quirk’s FemHealth practice, we used our experience and expertise in the feminine healthcare space to create a unique campaign for INNOVO®’s unique solution to incontinence,” explained Wren Sieber, Creative Director at Quirk Creative. “The spot focuses on the target audience's real emotional trigger moments – first as floating dream sequences, symbolic of our audience’s desire to engage, and then again in real time, to be able to run, jump, and laugh, feeling the impact of the shorts.” In order to effectively reach women over 35 with active lifestyles who were past or current users of products from its competitors, INNOVO® turned to Simulmedia, the leader in truly cross-channel TV advertising. Simulmedia’s patented TV+® platform helped INNOVO® forecast where its target audience would be watching TV and then activated against that audience at guaranteed scale with a national data-driven campaign. “Our TV+® platform’s unique planning, buying, activation and measurement capabilities as well as direct access to premium video inventory from over 250 networks and streaming services enabled INNOVO® to get its ads more broadly in front of females across the U.S.,” said Dina M. Roman, Senior Vice President of Sales, Simulmedia. “This allowed the brand to cost-efficiently spread its powerful message, grow awareness and drive online sales.” INNOVO®’s strategy resulted in a dramatic and measurable impact on all key performance metrics, including: a 265% lift in site visitors, a 199% increase in customer response rate, a 60% increase in “Add to Carts” on the company’s website and a significant 45% reduction in cost per site visitor to the company’s website. 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PROGRAMMATIC ADVERTISING

Baidu Global to Showcase New Features of MediaGo Platform at DMEXCO 2022

MediaGo, Baidu Global | September 21, 2022

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Teikametrics to Discuss Visualizing Advertising and Retail Performance at Upcoming Amazon Accelerate Conference

Teikametrics | September 12, 2022

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AD TECH AND MARTECH

Media and Games Invest Promote Ad-Tech Veterans Ionut Ciobotaru and Sameer Sondhi to C-Level Managers

Media and Games Invest | September 02, 2022

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Spotlight

Engaging in social media can be a highly effective way for MSPs to boost their market presence, expertise and market share. However, success in social media initiatives is anything but assured; it takes developing a sound strategy and executing on a sustained basis to yield dividends. This paper provides the background and guidance MSPs can use to build an effective social media strategy, one that yields real business results.

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