Walmart’s plan to buy Vizio for $2.3 billion shows how retail media networks are expanding into premium advertising channels like connected TV (CTV) and streaming.
This move could lead to fewer options for advertisers, potentially mirroring the dominance of big players like Google and Meta in the past. Brands relying on Vizio for media planning and measurement might have to switch to Walmart, impacting their choices.
Ashwin Navin, CEO of Samba TV, sees this as a significant shift that could disrupt the industry, positioning Samba TV as the only independent TV data provider. Vizio’s valuable data, such as its automatic content recognition (ACR) technology, may become more restricted and costly under Walmart’s ownership, raising concerns among media executives.
Game-Changing Deal?
Walmart’s acquisition of Vizio is a significant move to boost its retail media arm, Walmart Connect. With Walmart Connect already experiencing substantial growth, Vizio’s suite of advertising solutions and extensive brand relationships further expands its reach. The acquisition aims to create a more comprehensive advertising ecosystem, leveraging Walmart’s various channels like Walmart+ and Vizio’s CTV capabilities.
This strategic move aligns Walmart closer to Amazon’s approach, strengthening its position in both retail and streaming sectors. Alex Yip from AppsFlyer views the deal as a game-changer, emphasizing Walmart’s access to valuable consumer data and its potential to challenge Amazon’s dominance in e-commerce and streaming.
CTV convergence
Retail media networks are increasingly turning to connected TV (CTV) as a lucrative advertising avenue, leveraging first-party shopper data to target ads more precisely. This trend is amplified by the decline of third-party cookies, prompting advertisers to seek new ways to reach their audiences.
According to Brian Gleason of Criteo, this shift will lead to a convergence in digital advertising, with retail media and CTV playing a significant role. With Vizio, Walmart Connect enhances its capabilities in this space rapidly.
Research indicates that CTV advertising revenue in the U.S. is expected to grow by 22.4% this year, reaching $30.1 billion, highlighting the immense potential of this channel.
