In this file:
· Walmart bolsters growing ad business with Polymorph Labs acquisition
· Walmart to buy ad-tech startup to better compete with rival Amazon
Walmart bolsters growing ad business with Polymorph Labs acquisition
Walmart, taking on rival Amazon, has been building its own advertising division based on online and in-store sales data
By Tonya Garcia, MarketWatch
Apr 12, 2019
Walmart Inc. said Thursday that it will acquire the technology and assets of Silicon Valley-based Polymorph Labs, adding to its expanding ad business, Walmart Media Group.
Details of the deal, including the value of the transaction, were not disclosed. The deal is expected to close later in the spring.
Walmart has been “quietly” building its advertising division, which is based on online and in-store sales data, according to a blog post from Stefanie Jay, vice president and general manager of Walmart Media Group. Walmart’s data comes from the “nearly 160 million visitors to our stores and websites every week.”
“Simply put, we can help brands understand if someone saw their ad on Walmart’s platform or across the internet, and then purchased the product in-store or online,” Jay wrote.
Walmart is “not disclosing the size or growth trajectory” of the company’s ad business, according to a spokesperson.
Rival Amazon.com Inc. reported $3.39 billion in sales under the “other” category in its most recent earnings report for the fourth quarter. That figure, which is up 95% from the previous year, “primarily includes sales of advertising services,” according to the earnings release.
“We see an inflection point in Amazon’s profits over the next three years, driven by improving retail margin expansion, coupled with the mix shift to higher margin AWS and advertising segments that combined could top $100 billion by 2022 (25% of sales) versus $10 billion in 2015,” wrote KeyBanc Capital Markets analysts led by Edward Yruma in a March 14 upgrade of Amazon stock.
KeyBanc rates Amazon...
Walmart to buy ad-tech startup to better compete with rival Amazon
The Associated Press
via The News-Gazette (IL) - 04/12/2019
NEW YORK (AP) — Walmart says it's buying San Francisco-based ad-tech startup Polymorph Labs as it looks to better compete with rival online juggernaut Amazon in targeting shoppers online.
The world's largest retailer has been quietly building its own advertising business with a unit called Walmart Media Group, though that business is still smaller than Amazon's.
Amazon's total ad revenue in the U.S. was $3.3 billion, or nearly 4 percent of the total digital ad spending pie in 2017, according to research firm eMarketer. The firm expects Amazon's ad revenue to hit $19.2 billion, or 11.2 percent, by 2021. No numbers are available for Walmart.
Walmart Inc. said Thursday that Polymorph's technology will make advertising with the discounter easier for thousands of brands while delivering more relevant digital ads to consumers faster.
Terms of the deal weren't disclosed.
Polymorph's technology platform, which includes a high-speed ad server, will enable Walmart advertisers to...