Walmart, the retail giant is expected to make nearly $1 billion in sales this year as it joins hands with the nascent business. This would go on to even double the sales taken in by the Walmart media group last year.
The Walmart media group was launched by Walmart to foster the marketing of their store. The group was instructed to post ads on their websites and across 4800 stores in the United States. It is safe to say that the Walmart media group carried out its task somewhat efficiently. However, most income will be generated through ad business.
An exceptional increase in the income generation has been witnessed after Walmart announced to invest in the popular social media platform- Tik Tok. Although this decision has been met with criticism by many it has lead to a soaring rise in Walmart’s revenue and profits. Many analysts believe in the era of socializing, apps like Tik Tok are prolific for retailers to expand their business. This is exactly the strategy Walmart has smartly implemented. The results are already quite evident.
Suggestions to separate Tik Tok from its parent Chinese company; Byte Dance are under discussion. Donald Trump is enraged by the partnership between Walmart and Tik Tok. He has indicated a ban over Tik Tok to safeguard the welfare of Americans. He fears American users’ information can easily be accessed by this Chinese company.
Despite the tough circumstances surrounding the deal, Walmart has decided to move ahead with it. The company has meticulously gathered consumer data and has improved the way it targets the audience. A strategic approach relating to the advertising business was long due to the retailer. Walmart Media Group still has a long way to go but with a clear and concise plan it will eventually climb up the ladder of success.