Recently Walmart has bought an online advertising company so that it can easily compete with Amazon. On April 11, 2019, Walmart bought Polymorph Labs which helped companies to advertise their brands over the internet. Though the spokesperson of Walmart didn’t share anything from the deal, reporters said that Walmart has bought Polymorph labs so that it can help their advertisers to focus on customers with ease.
At present Amazon holds the third position as an advertising platform in the US, Google, as well as Facebook, hold the first and second position. Walmart will also have an upper hand with respect to Amazon as the company possesses various brick and mortar stores in the country. Furthermore, the company also possesses a great range of customer data which will give it an upper hand.
While speaking to the press, Stefanie Jay said that brands that would choose Walmart would now get dual benefits as customers can purchase their products online and offline. Furthermore, Michael Lasser told the reporters that at this scale and a large database, Walmart can flourish in a small span of time.
Last year, in the US, Walmart made around $184 billion online by selling groceries, the company made total revenue of $500 billion. In recent years, Walmart has also suffered loss as it is trying to get online and it has also lowered the price of goods to compete with other companies over the internet.
Contrary to this, Walmart also stated that by investing in financing, healthcare as well as advertising services, the company could gain on the losses suffered. During a press conference, Lasser said that retailers have to find new ways to generate profits.
He further said that is very essential to focus on traditional ways of retailing as it holds a prospective future. Though the online selling holds great prospect for Walmart, it won’t be an easy task to undertake as many other companies like Kroger as well as Ahold Delhaize had undertaken similar endeavor.