Walmart explores matchmaker marketplace
According to trademark filings, Walmart may introduce a platform that will work with social media influencers to help the store and its 100,000 third-party sellers advertise their products and services online.
According to the July 27 paperwork seen by Reuters, Walmart registered trademarks for “Walmart Creator” and “Walmart Creator Collective,” which would offer social media consultancy and “the promotion of goods and services of others through influencers.”
At the moment, Walmart uses influencers to advertise its groceries, clothing, and Walmart+ loyalty programme. On platforms like Instagram, YouTube, and TikTok, influencers frequently have big fan bases and promote items by sharing affiliate links. When a customer clicks on the link and makes a purchase, they receive a commission.
According to media business Influencer Marketing Hub, influencer marketing will expand into a $16.4 billion sector by 2022. Rivals Each Shopify and Amazon.com has their own network of social media influencers.
Trademark applications are done for a variety of reasons by businesses, and they are not always followed by the introduction of a new product or service.
At this time, Walmart Connect, the retailer’s digital advertising division, allows third-party vendors to buy adverts. During its February earnings call, Walmart Connect reported $2 billion in sales for its advertising unit during the previous fiscal year.
Walmart noted during its fourth-quarter results call in February that expanding its e-commerce business, particularly its delivery-subscription service Walmart Plus, has been a focus, and the company has ambitions to introduce additional options for sellers. By the end of 2022, Walmart expects to have over 240 million items available online, and on Tuesday the company reported a 12% increase in second-quarter e-commerce sales in the United States.
Walmart’s global advertising division, which consists of Walmart Connect and the advertisements for its India-based e-commerce startup Flipkart, increased by about 30% from the previous year. The company reported that the number of active advertisers has climbed by 121% since last year during its earnings call on Tuesday.
Since 2017, Amazon has given social media influencers the option to make their own online pages for certain products they advocate that are available on the Amazon marketplace.com. Every product purchased from the influencers’ page results in a commission payment.
Walmart wants to take advantage of marketers’ decisions to spend more of their budgets on “the creator economy,” according to Matt Gilbert, chief executive of business partnerships software company Partnerize.
According to Danielle Wiley, CEO of influencer marketing firm Sway Group, a large number of influencers rely on Walmart for income through “affiliate money.” “Any way the company can simplify this for influencers and support content development will be beneficial to both sides.”