New ClickZ Walmart Insights Newsletter - 10.10.2024

PLUS: Instant Pay Shakes Up Retail

Author

Sophie Bruxner-Randall
October 10, 2024

Ad Week New York 🎤

ADVERTISING INSIGHTS
✨ Fresh Insights from AdWeek 2024

Missed AdWeek 2024 in New York? No worries! Chair of Contentive Lee Arthur attended, capturing fresh insights. Here's a snapshot of what you need to know:

  1. Transition to Profit-Focused Metrics: The shift from traditional ROAS to profit-driven metrics emphasizes the need for DTC marketers to evaluate the true impact of each channel. This aligns with findings from Fospha's latest report, highlighting the importance of optimizing customer acquisition across platforms like Meta, TikTok, and Snapchat.

  2. First-Party Data Utilization: Emphasizing first-party data is crucial for creating personalized advertising experiences. As brands enhance their omnichannel strategies, leveraging this data will be key to delivering consistent messaging across all touchpoints.

  3. Full Funnel Measurement Challenges: Understanding how different channels contribute to conversions is increasingly complex. The insights shared at Adweek emphasize the necessity for sophisticated full funnel measurement tools and strategies.

  4. Platform-Specific Strategies: With unique strengths across platforms, DTC marketers must adapt their approaches accordingly.

Specialty Bites 🍪

Walmart's Luminate, soon to be Scintilla, empowers suppliers with data insights to navigate challenging retail dynamics. By offering tools to understand shopper behavior and optimize advertising, Walmart enhances supplier strategies. This initiative supports small and mid-sized suppliers, fostering collaboration and growth in diverse product categories.

Walmart's move to enhance its pay-by-bank option with instant payments could disrupt the financial landscape. By leveraging real-time networks, Walmart aims to reduce reliance on card networks, potentially benefiting consumers and small businesses with immediate fund access and lower fees, while challenging traditional banking models.

Webinar Wrap 🎧

This week, we attended Fospha's pre-peak webinar on Acquiring Customers Profitably During Peak Period. Here's what we learned:

  1. Competition is hot – so be prepared

With the ad economy rebounding and cross-channel CPA up 13% YoY, brands need to step up. Dan Sava compared Peak Period to the Olympics—each year, competition gets tougher, and brands need to start preparing early to stay competitive.

  1. Go full-funnel to unlock scaling potential in Paid Social

There is still huge headroom for brands to scale Paid Social, but there’s a knack to creating a sustainable approach. A full-funnel strategy. Henry Linney shared how Seraphine boosted returns by investing more in Paid Social Consideration and Awareness, while Dan Sava highlighted Nike’s method of educating customers early to ensure they’re ready to convert by Black Friday.

  1. Don’t ignore TikTok

The panel highlighted the huge value in TikTok’s seamless consumer experience, from discovery to purchase. Dan Sava added, “Most, if not all, brands should try it.”

🎥 Watch the full webinar here!

More to Discover 🛍️

Walmart is strategically evolving to challenge Amazon by integrating online and in-store shopping, creating an omni-channel retail experience. This approach is attracting a diverse customer base, including higher-income households, and is expected to generate significant revenue through advertising, memberships, and data insights.

With 150 million weekly customers, Walmart's focus on value and convenience appeals to inflation-weary consumers. The expansion of home delivery and premium house brands enhances its competitive edge. However, refining operational details, like food delivery windows, remains crucial.

As Walmart and Amazon both launch holiday deals, a new retail paradigm emerges where multiple giants can thrive. This shift suggests that both companies can gain market share, challenging the old view that only one can dominate.

Walmart Plus offers a cost-effective alternative to Amazon Prime, with benefits like early access to sales, free shipping, and discounts on gas and groceries. Members enjoy perks like Paramount streaming and Burger King discounts. With a 30-day free trial, it's a savvy choice for budget-conscious shoppers.

Walmart and Co-op are collaborating to enhance online grocery services using Store Assist, a fulfillment solution. This partnership aims to streamline order processes, improve delivery times, and boost customer satisfaction. By integrating various fulfillment methods, Co-op seeks to capture a significant share of the rapid commerce market.

Performance Platters 🍽️

Social ad spending targets younger audiences with low-cost products, leveraging platforms for direct-response ads and video formats. Media and entertainment use social media for game installs amid reduced TV spending. Retail and CPG dominate social ad spend, driven by competition from Shein, Temu, and D2C players.

Brands face "deal fatigue" as constant sales events pressure budgets and loyalty. To stand out, they innovate with exclusive products, tiered discounts, and added value like loyalty points. Despite challenges, Prime Day remains crucial. Adaptation is key in navigating this evolving retail landscape, ensuring sustained customer engagement and growth.

Retailers are starting holiday promotions earlier due to inflation and a shorter shopping season. With a focus on budget-friendly options and early deals, marketers aim to capture consumer interest. Enhanced in-store experiences and creative delivery strategies are key to building customer loyalty and adapting to economic challenges.

ClickZ is a Contentive publication in the DTC Ecommerce division