Walmart is Using its Massive Sales Data to Help Advertisers
The company will use its first-party shopper information to show relevant ads to video viewers.
Walmart made its billions as a shopping giant. Now it wants brands to think of it as an advertising powerhouse.
Walmart’s Vudu held its first NewFront in New York on Wednesday. The NewFronts are annual presentations digital media companies hold for marketers previewing upcoming content and advertising opportunities.
What makes advertising with Vudu especially interesting is it is letting marketers leverage information on Walmart shoppers. Starting July 1, Vudu will launch Vudu Audience Extension. This will allow marketers to target potential customers using Walmart’s own first party sales data. The company estimates it will be able to reach more than 50 percent of U.S. households based on its information. The offering will be available for Vudu content, as well as additional partners which will be announced in the upcoming months.
More people shop at Walmart than watch Hulu, Apple, and subscribe to Amazon Prime combined, according to Walmart Media Group vice president and general manager Stefanie Jay,
“We know how people shop,” Jay said at the presentation. “The quality and quantity of our first-party shopper data is unbeatable.”
More than 250 million Americans shopped at Walmart last year, or about 95 percent of the country, according to Jeremy Verba, vice president and general manager of Vudu. Unlike Netflix and the upcoming Disney+, Vudu is ad-supported which allows 10,000 titles to be viewed for free. A typical 90 minute movie shown on cable will stretch out to 180 minutes because of ad breaks, but Vudu’s movies will only run about 100 movies even with commercials. Customers have the option to pay for additional movies and shows, which gives them more control of their budgets.
For viewers, they may see commercials like “shoppable in-stream ads.” Viewers watching on connected TVs will be able to click on an item inside a show or movie to learn more about the product. In addition, the watcher will get an email with more information on the item, as well as the option to buy it directly.
If Hershey’s is advertising Twizzlers during a movie, Walmart will also tell the advertiser if that viewer prefers the original Twizzlers flavor or the sour one based on their past shopping behavior. The ad will then change to reflect this information.
Vudu is also investing in original content, like the upcoming series “Blue’s Clues & You,” “Adventure Force 5” and reality TV show “Turning Point with Randy Jackson.” Its bespoke programming will be focused on early childhood, kids and family, co-viewing and parents as audiences for mainstream America.
“There’s a big blank space between New York and L.A., and we think that’s our sweet spot,” said Vudu senior director Julian Franco at the presentation.
