Walmart DSP: Everything You Need to Know
During a year of astronomical growth for Walmart and Walmart.com, the retailer is taking another major step to compete with Amazon. Walmart, in partnership with The Trade Desk, is launching a DSP offering for advertisers. The news comes shortly after Walmart Media Group (WMG) announced its rebrand to Walmart Connect. This is exciting, and long-anticipated, news for Marketplace Strategy and our clients. Continue reading for everything you need to know about Walmart DSP.
Walmart Connect, Formerly Known As Walmart Media Group (WMG)
Several weeks ago, Walmart announced the rebranding of its ad business. Walmart Media Group (WMG) will now have a new name, Walmart Connect, and a renewed focus and mission. According to CNBC, the retailer expects and plans to grow Walmart's advertising segment by ten times within the next five years. And, according to Walmart Connect’s website, the organization is ‘helping brands connect with our customers more often and more meaningfully than ever before.’ With this rebranded name and its corresponding statement, we believe advertisers can expect a new level of attention and elevated strategy from Walmart.
What Will Walmart Connect Offer Brands And Advertisers?
As mentioned, alongside the introduction of Walmart Connect, came the news of Walmart DSP. The retailer struck a deal with The Trade Desk, a software company known for its services designed for agencies looking to expand their reach and refine their targeting efforts. It also announced the acquisition of Thunder Advertising Technology. This will make it possible for Walmart to create its own display self-serve platform.
Our clients look forward to leveraging Walmart's first-party data to reach audiences across its online and offline inventory. We anticipate Walmart DSP becoming available later this year and believe it will be a game-changer for advertisers looking to maximize their efficiency and return on the channel.
What Does This Mean For Brands’ Amazon DSP Spend?
While this added technology better positions Walmart competitively, we don't expect brands to necessarily shift spend from Amazon to Walmart. Many brands have a dedicated budget for Amazon Advertising and Amazon DSP. The option to invest in Walmart DSP won't change this approach, especially for the big players in the industry. However, this could be one of the first significant nudges for advertisers to rethink how they break out their digital spending across platforms. Over time this will work to a brand's benefit allowing them to broaden their reach more efficiently and allocate spending toward platforms that perform and elevate their brand.
Those who follow us on social media or stay up to date with our blog, know marketplace expansion is a key theme for our clients this year. As Walmart and other marketplaces continue to bolster their advertising capabilities, diversifying sales channels beyond Amazon will become commonplace. We believe Walmart DSP will allow our clients to elevate their overall e-commerce presence and drive better results than ever before.
If you could use the support of a strategic partner, schedule a free consultation. And, as always, we’re here to answer any questions about your brand’s presence on Amazon and other marketplaces. Finally, should you be interested in learning more about the results our clients experience through a partnership with MPS, check out these resources.
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