There’s no place like Walmart.
There’s a reason they’re the world’s biggest retailer, with over 11,000 stores across 27 countries. When you join Walmart Marketplace, you’re joining a community of over 2 million sellers who collectively generate $100B in sales on our platform.
Walmart marketplace advertising is under expansion in an attempt to gain ground against Amazon. After experimenting with different methods and media for advertising, Walmart has decided to double down on television, social media, and digital ads.
Walmart employs a broad range of advertising methods to reach new customers, including targeted advertisements on Facebook, Instagram, Twitter, and Snapchat. However, they have found that traditional TV ads are the most effective tool in reaching new customers, particularly customers who are not already familiar with the Walmart brand. If a customer sees a Walmart ad on TV but never shops at Walmart themselves, it’s likely they know someone who does shop at Walmart; they might visit one while traveling or while visiting family or friends.
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Walmart’s advertising expansion facts
Walmart’s global advertising has doubled. The retailer is expanding to new markets and launching a digital advertising business that is “growing rapidly.” Let us have a deep insight into some of the facts that prove our point:
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Walmart spent $2 billion in 2012 in advertising, according to Kantar Media estimates of U.S. spending, which don’t include overseas outlays.
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The company’s media spending in fiscal 2013 was about $2.4 billion, a spokeswoman for the Bentonville, Arkansas-based company said in an e-mail today. The figure includes spending on television, print, online, and other marketing costs.
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In 2014, the company started allowing customers in many countries to purchase products online and pick them up at the store or have them delivered, which likely attracted new customers, both online and at physical locations.
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The company spent $1.1 billion on global advertising in 2016, up from $613 million in 2014, according to a Walmart spokesman.
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Walmart’s global advertising spend totaled $4.4 billion in fiscal 2017, a jump of 92% from fiscal 2016, according to Statista.
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The company disclosed the figures saying it spent $7.43 billion advertising its brands during the fiscal year ended Jan. 31, 2019, up from $3.35 billion a year earlier. The world’s largest seller of groceries also said it plans to invest in “additional marketing and advertising” over the next few years as it expands its international business and moves into online advertising.
How is Walmart Succeeding as a Retailer?
Walmart is having a moment right now. In the face of Amazon’s retail dominance, Walmart has managed to keep up as one of America’s most popular retailers.
How?
First, Walmart has done an amazing job managing its brand. From its stores and packaging to its website and marketing strategy, Walmart has managed to make itself an iconic American brand. Its logo is instantly recognizable, and its efforts to curate a positive image have succeeded in making Walmart a household name.
Second, Walmart has been a pioneer of value-driven marketing and product positioning. They’ve positioned themselves as a reasonably-priced option in the eyes of consumers, but they also offer high-end products that compete with even Amazon’s offerings. This combination of value pricing and quality products makes them one of the most competitive retailers on the market today.
Reasons behind increase in Walmart’s Global Advertising
Walmart is smart. It’s investing heavily in advertising because it knows that’s where the growth is, and it wants to get ahead of the competition.
According to market research firms SMI and Kantar, despite the rise of e-commerce and marketing automation, investment in traditional advertising is still growing at a rate of 3% per year. In fact, one firm, Forrester Research, predicts that advertising spending will grow by 8% this year alone. With so much money being spent on adverts, it makes sense that companies like Walmart would want to reach out to their customers with a message that speaks directly to them.
Some of the reasons are:
Increased Usage Of Social Media Platforms:
The rise of social media and its prevalence in shopping habits has influenced the advertising strategies of big brands like Walmart. Marketers around the world are adapting to the new realities of social commerce: people don’t just use social platforms to browse and buy; they want direct access to brands they trust. They want to talk to you! They want to share their opinions! They want you to give them coupons, discounts, and free stuff!
Desire To Tap Into A Global World
Walmart has been shifting its marketing investments from local to global campaigns. This shift is intended to streamline its messaging and branding across the world.
Promotes Customer Loyalty
Walmart has been increasing its advertising spending in general because it helps drive sales growth and customer loyalty.
That’s why Walmart has increased its spending on global advertising. They’re not only trying to reach more shoppers but to engage with them and build loyalty.
The customer is the focus.
That’s what Walmart’s CEO, Doug McMillon, said at the company’s annual shareholder meeting in June 2019 when asked about the reason behind Walmart’s increased advertising budget. In an interview with Bloomberg, McMillon explained that he wanted to see growth in the company by focusing on the customer experience. He is reported as saying:
“There are things that we can do to make shopping more convenient for our customers and make them feel better about their shopping experience.”
To put it simply: people don’t just shop online—they hang out online. And big brands like Walmart know that if they want your attention, they have to be where you are.
Conclusive Remarks
Walmart has been around for a good, long time in terms of the business world. They know what their customers want and why their products are high quality. It is also going along with the times and moving into the digital age by understanding that customers won’t go to a store just because they want something—they’ll buy it online.
Their ad spending this year is predicted to be even higher than last year. Clearly, they’re looking to spend big in order to gain an even bigger advantage. Despite Amazon’s best efforts, they’re doing a great job of responding quickly and effectively.
If Walmart’s advertising revenues continue to increase, could there be a better Christmas gift to the world than that?
Let’s hope that the trend stays on track for them as they continue to climb.
