Walmart’s widely revered as a retail maven, but media buyer? It’s a brand-new capability for the $473-billion company, which on Friday revealed more details about the digital marketing platform it’s developed, the Walmart Exchange (WMX).
Like Amazon, which has turned massive amounts of shopper data into monetization opportunities for brands via Amazon Media Group’s demand-side platform Amazon Advertising Platform (AAP), Walmart is harnessing purchase, loyalty and other unspecified third party data assets to help suppliers spend their media dollars.
“The big difference, in my mind, is that Amazon is primarily focused on monetizing Amazon traffic,” commented Jason Goldberg, VP of commerce strategy for Razorfish. “The advertisers on their platform are often not vendors selling through Amazon, and the attribution of that media is exclusively direct-response clicks.”
Walmart, too, is monetizing audience traffic but seems to be eyeing media, initially, as a means to drive more sales for the retailer. Consider a brand like Tide, which following a brand campaign might wish to measure and track offline sales performance at the SKU level for its High-Efficiency detergent in specific geos.
Although other companies like Datalogix and Dunnhumby specialize in online-to-offline measurement, and other retailers like Tesco and Staples have invested in “innovation labs,” Walmart’s intent to develop media and marketing optimization services essentially makes it a media agency.