{"id":9112,"date":"2020-09-22T10:24:52","date_gmt":"2020-09-22T08:24:52","guid":{"rendered":"https:\/\/www.dazzlepop.net\/site\/?p=9112"},"modified":"2020-10-12T11:02:21","modified_gmt":"2020-10-12T09:02:21","slug":"the-tiktok-deal-means-big-growth-for-walmart","status":"publish","type":"post","link":"https:\/\/www.dazzlepop.net\/site\/the-tiktok-deal-means-big-growth-for-walmart\/","title":{"rendered":"The TikTok deal means big growth for Walmart"},"content":{"rendered":"<div style=\"text-align:center\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/106681171-1598555244259-waltik.jpg?v=1598555623&amp;w=740&amp;h=416\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"The TikTok deal means big growth for Walmart\" title=\"The TikTok deal means big growth for Walmart\" \/><\/div>\n<h3 class=\"wp-block-heading\">Why TikTok deal could mean big growth for Walmart\u2019s ads business<\/h3>\n\n\n\n<p>KEY POINTS<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Walmart confirmed over the weekend it had tentatively agreed to purchase a 7.5% stake of <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">TikTok<\/a> in the U.S.<\/li><li>It could be a boon for the retailer\u2019s tiny but growing advertising business.&nbsp;<\/li><\/ul>\n\n\n\n<p><a href=\"https:\/\/www.cnbc.com\/quotes\/?symbol=WMT\">Walmart<\/a>&nbsp;confirmed over the weekend it had&nbsp;<a href=\"https:\/\/www.cnbc.com\/2020\/09\/19\/trump-says-he-has-approved-tiktok-oracle-deal-in-concept.html\">tentatively agreed to purchase a 7.5% stake<\/a>&nbsp;of TikTok in the U.S., alongside&nbsp;<a href=\"https:\/\/www.cnbc.com\/quotes\/?symbol=ORCL\">Oracle<\/a>\u2019s larger 12.5% stake.<\/p>\n\n\n\n<p>That deal could be a boon for the retailer\u2019s tiny but growing advertising business.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/106711229-1600720776436-gettyimages-1228644084-porzycki-oraclewa200921_npms6.jpeg?v=1600720857&amp;w=720&amp;h=405\" alt=\"The TikTok deal means big growth for Walmart\" \/><\/figure>\n\n\n\n<p>Although it\u2019s known for its big-box stores, Walmart has an advertising business that resembles<a href=\"https:\/\/www.cnbc.com\/2019\/07\/17\/how-amazon-advertising-works.html\">&nbsp;Amazon\u2019s<\/a>, albeit on a much smaller scale. On Walmart\u2019s own website, advertisers&nbsp;<a href=\"https:\/\/www.walmartmedia.com\/solutions\" target=\"_blank\" rel=\"noreferrer noopener\">can sponsor<\/a>&nbsp;their products to appear prominently in search or on product detail pages. It also has a&nbsp;<a href=\"https:\/\/www.walmartmedia.com\/display-products\" target=\"_blank\" rel=\"noreferrer noopener\">display advertising network<\/a>, which lets advertisers reach Walmart customers both on the retailer\u2019s own digital properties and off-site, whether that\u2019s on other websites or on social channels like <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">Instagram<\/a> or <a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">Pinterest<\/a>.&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.dazzlepop.net\/site\/category\/business\/\">Walmart<\/a> Media Group&nbsp;<a href=\"https:\/\/www.walmartmedia.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">boasts<\/a>&nbsp;about its \u201cmassive scale\u201d and \u201cmassive reach\u201d to advertisers, saying 160 million customers visit its stores or its website every month, and claims 90% of households have shopped at Walmart at least once in the prior 12 months, attributing 2020 data.<\/p>\n\n\n\n<p>But in its&nbsp;<a href=\"https:\/\/s2.q4cdn.com\/056532643\/files\/doc_financials\/2020\/ar\/Walmart_2020_Annual_Report.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">2020 annual report,<\/a>&nbsp;the company said&nbsp;Walmart Media Group along with \u201cfuel and financial services and related products\u201d make up less than 1% of annual net sales.<\/p>\n\n\n\n<p>By way of comparison, in Q2, Amazon\u2019s \u201cOther\u201d business segment, which \u201cprimarily includes sales of advertising services,\u201d accounted for $4.2 billion in net sales, a bit less than 5% of the company\u2019s total. It\u2019s consistently growing around 40% on an annualized basis.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A young, engaged userbase<\/h2>\n\n\n\n<p>In general, analysts point to TikTok\u2019s large and engaged userbase as an opportunity for Walmart\u2019s ads business. In particular&nbsp;the retailer is wildly popular with&nbsp;<a href=\"https:\/\/www.cnbc.com\/2020\/02\/29\/tiktok-teens-are-obsessed-with-fake-luxury-products.html\">young consumers seeking inexpensive wares<\/a>&nbsp;they can doll up with DIY projects, which they then show off on TikTok.&nbsp;<\/p>\n\n\n<p>Read more: <a href=\"https:\/\/www.cnbc.com\/2020\/09\/21\/why-tiktok-deal-could-mean-big-growth-for-walmarts-ads-business.html\">cnbc<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Why TikTok deal could mean big growth for Walmart\u2019s ads business KEY POINTS Walmart confirmed over the weekend it had tentatively agreed to purchase a 7.5% stake of TikTok in the U.S. It could be a boon for the retailer\u2019s tiny but growing advertising business.&nbsp; Walmart&nbsp;confirmed over the weekend it had&nbsp;tentatively agreed to purchase a [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":9114,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":""},"categories":[45],"tags":[94,31,301,51,159,98,115,191],"class_list":["post-9112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-amazon","tag-business","tag-cnbc","tag-instagram","tag-oracle","tag-pinterest","tag-tiktok","tag-walmart"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Dazzlepop | The TikTok deal means big growth for Walmart<\/title>\n<meta name=\"description\" content=\"The TikTok deal means big growth for Walmart Walmart confirmed over the weekend it had tentatively agreed to purchase a 7.5% stake of TikTok in the U.S.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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