Inflationary pressures have led to a dramatic increase in the number of consumers hunting for value this holiday season. Though 90% of US households shop with Walmart every year, we’re seeing an increase in mid- to higher-income customers who are looking for value, particularly with food and common everyday goods. Data from Walmart Connect’s recent report “Insights Guide: Holiday 2022” reveals that more than two-thirds of holiday shoppers plan to spend more time pursuing discounts this season and 35% of shoppers are open to trying new brands. This represents a unique chance to win over new customers.
As customer profiles and shopping habits rapidly shift, suppliers and sellers looking to connect with Walmart shoppers have an opportunity to elevate their brands with the right shopper at the right time. While pricing and deals play an important role in influencing customer purchases, product discovery is also critical—especially amidst the high traffic of the holiday season.
That’s where search advertising, or pay-per-click advertising, comes into play. At Walmart, we call it sponsored search, and it is designed to provide the scale, reach, and high conversion rates advertisers need to connect with the right customers.
The benefits of sponsored search
Walmart has become the No. 2 ecommerce platform in the US and our data shows that 39% of Walmart.com customers make at least one purchase every week. According to a recent customer survey, 81% of customers said low prices are the top reason they plan to shop at Walmart this holiday season. With an increase in customers and traffic during the holiday season, advertisers investing in our sponsored search product can cut through the clutter to connect with customers.
Sponsored products campaigns traditionally experience higher conversions and return on ad spend (ROAS) during the holiday season compared to the rest of year, according to Walmart’s internal data. In fact, during the 2021 holiday season, our advertisers collectively experienced about a 110% lift in conversion rates and around an 18% improvement in ROAS.
With a series of enhancements and new tools we’ve rolled out this year, we plan to make sponsored search more effective for our advertisers in a few key ways:
As the holidays approach, advertisers must stand out to catch and maintain the attention of potential customers who are increasingly searching for value. The good news is there’s still time to capitalize on Walmart Connect’s sponsored products campaigns to create valuable connections with holiday shoppers.
Visit our website to learn how to create relevant and compelling sponsored product ads this holiday season.
—Jeff Clark, Vice President, Officer of Product, Product Marketing, and Analytics, Walmart Connect
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