ClickZ Walmart Insights Newsletter - 11.07.2024

PLUS: The $9.95 Move to Dominate Healthcare

Author

Sophie Bruxner-Randall
November 07, 2024

Editor’s Pick 🎯

YouTube surpasses forecasts in Alphabet's Q3 earnings call

Google parent Alphabet's Q3 earnings call revealed YouTube's impressive performance, bringing in nearly $9b in ad revenue—a 12.2% increase year-over-year. This substantial growth, typically undisclosed by Alphabet, signals the platform's rising dominance in digital advertising.

👉 Fospha highlighted this upward trend in their their latest report, identifying YouTube as the second-fastest-growing ad channel for eCom brands by ad spend.

While YouTube currently reports the highest CPA among Google channels as brands adapt and optimize their campaigns, its increasing popularity reflects a broader shift toward brand-building channels for long-term growth. The platform's potential for driving brand growth makes it one to watch in coming quarters.

Niche Nuggets 🔎

Walmart and Amazon are enhancing their Black Friday and Cyber Monday strategies to attract holiday shoppers. Walmart offers phased events and early access for members, while Amazon introduces AI tools like Rufus for personalized shopping. Both aim to provide convenience and value, leveraging technology for a superior shopping experience.

Walmart is enhancing holiday shopping with AI, offering personalized suggestions and improved homepages. This technology aids in influencer vetting and expands AI-driven features like shopping assistants. Competing with Amazon, Walmart focuses on AI's impact on the shopper journey, leveraging data for a refined customer experience.

Walmart is stepping up its game in the healthcare sector by launching nationwide prescription delivery early next year. This service will include new prescriptions and refills, delivered alongside groceries and other essentials. Impressively, Walmart aims to reach over 86% of American households, with the service already active in several states and expanding to 49 states by January.

The service is free for Walmart+ members, while others will pay $9.95 per order. However, refrigerated and controlled medications like opioids are excluded. This move comes as Amazon and other competitors like CVS and Walgreens also expand their pharmacy services. With many pharmacies closing due to low reimbursement rates, Walmart's initiative could be a game-changer in ensuring access to essential medications.

The Forbes Walmart Creator Upfronts highlighted the evolving creator economy, emphasizing creators as independent businesses. Brands must integrate e-commerce and improve communication with creators to enhance partnerships. The event underscored the need for alignment between brand goals and creator content to unlock the economy's full potential.

Walmart is expanding its delivery fleet with Chevy BrightDrop electric vans, enhancing its in-home delivery program to reach 62 million households. The vans, powered by GM's Ultium battery, offer 272 miles per charge. This move supports Walmart's tech-driven approach to improving customer service and operational efficiency.

Leading Voices 📣

Jamie Bolton reveals how top eCommerce brands drive resilient growth:

🌐 Diversification is Key: A diverse channel mix acts as an “insurance policy” for brands amid rising CPAs and a challenging market.

🔄 Stay Agile: What worked last year may not work today. Top brands adjust their strategy over time, adapting to new growth levers as they mature.

📊 Measurement Matters: With channel diversity comes more complex measurement needs. Only with full-funnel attribution can brands assess their channel mix and remain agile.

For a full rundown, check out the full post!

Performance Pulse 📈

Ad prices fell in Q3 2024, impacting ad spend growth in search and social. Retail media saw a click surge, while new formats outpaced traditional channels. Amazon DSP and Google Performance Max showed significant growth. Lower prices increased ad volume, especially in retail media's purchase funnel.

To navigate rising holiday advertising costs, diversify your strategy by incorporating platforms like TikTok, YouTube, and Connected TV. These channels offer competitive pricing and reach new audiences. Focus on user-generated content and platform-specific strategies to optimize engagement and conversions, ensuring a successful holiday marketing campaign.

Front Row, an acceleration company, helps brands optimize e-commerce strategies on platforms like Amazon. By leveraging Deal Days, brands can boost sales and visibility. Success requires planning, unique offerings, and nurturing customer loyalty. Effective SEO and affiliate marketing are crucial for sustained growth and maximizing long-term benefits.

ClickZ is a Contentive publication in the DTC Ecommerce division