Walmart, one of the world’s largest retailers, is taking steps to enhance its in-store advertising offerings for third-party businesses. The company aims to leverage self-checkout screens and in-store audio to provide more advertising opportunities to brands.
By tapping into these platforms, advertisers can connect with Walmart shoppers in a targeted manner, increasing brand visibility and potential sales.
A New Avenue for Third-Party Advertisers
As reported by CNBC, Walmart is actively promoting the sale of in-store advertisements to third parties. These ads will appear on self-checkout screens and as 30-second radio spots on the store’s audio system. Advertisers will have the flexibility to choose specific regions or target particular Walmart stores, tailoring their campaigns to reach their desired audiences effectively.
In addition to the in-store ad displays, Walmart is beta-testing food demo kiosks in selected Dallas-Fort Worth-area stores; These kiosks offer sampling stations similar to those found in Costco stores. The plan is to expand these sampler stations to 1,000 Walmart stores nationwide by the end of January. Advertisers can bundle these stations with other advertising options, enhancing their reach and engagement.
QR Codes for Seamless Purchases
To facilitate a seamless shopping experience, Walmart will provide QR codes for customers to scan and purchase the products they try at the food demo kiosks. This innovative approach aims to bridge the gap between experiencing a product and making a purchase, making it more convenient for shoppers to acquire products that pique their interest.
Advertising as Part of the Diversification Strategy
While advertising currently constitutes a relatively small part of Walmart’s business, generating $2.7 billion in the last fiscal year out of its total revenue of $611.3 billion, the company is keen on expanding its advertising initiatives. Walmart’s CEO, Doug McMillon, previously outlined the company’s intent to diversify its revenue streams, with advertising being a significant component of this plan.
Walmart’s move to enhance in-store advertising follows a trend observed among other retailers. Companies like Target and Walgreens have also been testing ad displays throughout their stores, offering advertisers additional channels to connect with customers during their shopping journey.
Enhancing Customer Connections
Ryan Mayward, Walmart’s senior VP of retail media sales for Walmart Connect, the company’s ads division, believes that in-store advertising helps customers make connections between products and encourages them to consider additional purchases. For instance, an advertised jar of salsa in the chip aisle may prompt a shopper to grab it alongside their chips, enhancing the overall shopping experience.
In-store advertising presents a similar effect to targeted ads seen on mobile devices, creating valuable connections and increasing the potential for impulse purchases and, as it becomes an increasingly integral part of Walmart’s (and many other companies’) strategy, businesses know that they can leverage these opportunities to reach a broader audience and drive sales in a targeted and effective manner.
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