Walmart’s Cyber ​​Monday marketing campaign targets Amazon

Analysts say Walmart’s marketing efforts are directly aimed at rival Amazon, which tends to own demand from online shoppers on Black Friday and Cyber ​​Monday. In 2021, Amazon’s revenue figures increased despite lower overall e-commerce spending on Black Friday and Cyber ​​Monday, compared to 2020.

“Walmart is looking to grow its overall retail market share through e-commerce,” said Andrew Lipsman, principal analyst for retail and e-commerce at Intelligence Insider. Lipsman said with the new ad, “Walmart is trying to encourage people, presumably, who shopped at Walmart offline or in-store over the holiday weekends to continue shopping at on Mondays. .”

The company said growth at is “improving,” including in the marketplace, during its second-quarter earnings call. Walmart’s Walmart+ subscription program has approximately 16 million subscribers. “The total number of accounts increased by approximately 9% over last year, and member plus penetration continues to climb,” Walmart Chief Executive Doug McMillon said on the earnings call. .

Generally, Lipsman said, the Monday following Black Friday belongs to Amazon. Black Friday is an offline holiday and it’s also a big online shopping game. “Black Friday is Walmart’s day and Cyber ​​Monday is Amazon’s day,” Lipsman said. “But with this latest communication, Walmart is trying to address Cyber ​​Monday,” he added.

“Mondays in general during the holiday season are by far the most spent days of the week online. There’s always a peak on Monday, relatively speaking. And in fact, it’s not just Cyber ​​Monday , but the next two Mondays are also very busy days. Walmart is really trying to take a bite out of e-commerce Mondays,” Lipsman added.

Cyber ​​Monday saw $10.7 billion in consumer spending last year, down 1.4% from 2020, but still considered the biggest shopping day in line of the year, according to data from Intelligence Insider. According to Adobe, this year’s Black Friday online sales are expected to increase by just 1% over last year, while Cyber ​​Monday sales are expected to increase by 5.1%. The Monday following Thanksgiving has become the crucial start of the online Christmas shopping season due to the rapid growth of online shopping over the years.

The fight for online shoppers between Walmart and Amazon overlaps with Walmart’s efforts to bolster its ad business. The retailer is trying to catch up on its big rival’s booming ad business after recently announcing plans to integrate social media platforms such as TikTok and Snap into its ad tech platform.

Walmart’s strategy is to try to capture new customers at a faster pace. The retailer, as part of a very aggressive holiday promotion, has also cut the cost of Walmart+ subscriptions in half.

“There are customers on the fence that Walmart and Amazon are competing against and there’s probably more churn for Amazon Prime when Walmart drops its price,” Jason Goldberg, director of commerce at Publicis, told Modern Retail.

William L. Hart