Gen-Z, Millennial Momvertising Update Opps: Walmart acquires digital fitting room platform called Zeekit (Score 77)

Update: Walmart announced it is acquiring an online fitting room platform called Zeekit. The value of the purchase has not been disclosed. Zeekit's technology allows users to upload a picture or choose a model that most closely matches their height, shape and skin tone to simulate the experience of trying on clothes in-store. It also has a sharing function so users can get their friend's opinion. This will also add a social function to online shopping. 

**We are unable to provide any contacts from Zeekit because it is based in Israel.** 

Please refer to the articles below for additional spend and targeting data. 

Agency & martech readers-- To the best of my knowledge, Walmart works with Haworth (media buying & planning AOR) and Lopez Negrete Communications (digital AOR). It also has an in-house creative team. Keep reaching out to Walmart's new DMs to see if you can pick up any of its business. Remember, we think Walmart might be considering a media review as well. 

Our last update was published on April 21:

Update: Walmart created a new position this month by naming Jean Batthany its first SVP and chief creative officer. Batthany comes from Disney where she served as global creative VP of parks experiences and consumer products and lead a 250 person in-house creative team. She will report to CMO William White and is responsible for keeping the company's messaging consistent across all marketing channels. In February, Walmart brought marketing SVP Courtney Carlson in from Under Armour, where she served as NA marketing head. Carlson will lead category marketing and manage the company's core retail business. These hires are sure to impact the marketing strategy and potentially the agency roster. 

Please refer to the article below for spend and targeting information. 

Agency & martech readers-- We told you Walmart may be considering reviewing its media account, which is currently held by Haworth. These new marketing DMs only make this account more vulnerable, so keep reaching out and pitching your services. The company also works with Lopez Negrete Communications on digital, with an in-house creative team. 

The original article was published on March 10th:

Walmart has announced that it's considering a media agency review; if the company does so, the new agency partner would handle a business worth $600m. Walmart's current media AOR, WPP's Haworth, has handled media buying and planning, strategy for brand integrations and strategic partnerships concerning marketing, media and entertainment for the past four years. Agencies shouldn't necessarily reach out right now. However, I suggest keeping Walmart on your radar for the next few months. We will, of course, keep you updated.

According to iSpot, Walmart has spent approximately $51.1m on national TV commercials YTD, down 12% from the approximately $57.8m it had spent by this point last year. Its 2021 commercials have targeted millennials (male skew) viewing programs such as NFL Football, The Tonight Show Starring Jimmy Fallon, NBA Basketball, The Voice and Late Night With Seth Meyers. Walmart spent approximately $488.4m on this channel in 2020, mostly in Q4, up 13% from the approximately $433.4m it spent in 2019.

You may remember that Walmart selected William White as CMO in April 2020. More recently (February 2021), it appointed marketing SVP Courtney Carlson; Carlson previously served as the head of NA marketing at Under Armour.

Pathmatics reports the company has allocated roughly $31.7m toward digital ads so far this year, a 20% increase from the roughly $26.4m it allocated within the same 2020 timeframe. YTD, Walmart has earned around 4.8b digital impressions via Facebook (42%), Instagram (23%), desktop display (23%), desktop video (6%) and mobile display (5%) ads. 59% of this year's desktop display ads were placed site direct onto yahoo.com. Walmart's estimated full-year 2020 spend grew by 8% to $204.7m from that of $190.1m in 2019. 

Additionally, Magellan reveals Walmart (and all of its brands and career ads) has aired 507 podcast ads within the past 12 months. This is a sharp (217%) increase from the 160 podcast ads we reported the company aired from November 2019-November 2020.

Even though Walmart hasn't yet spend as much on national TV as it had by this point last year, its YOY spend rose notably in 2020; since most of this spend was allocated in Q4, the last quarter of 2021 may make its 2021 spend end up rising YOY as well.

Walmart is primarily targeting Gen-Z and millennials right now, judging by its increased digital ad spend, reliance on Facebook and Instagram advertising and usage of podcast ads. It tends to target parents, specifically moms. I've also seen Hulu ads, so you should also offer OTT ad space. Per Kantar data, Walmart additionally utilizes OOH, print, radio and local broadcast. The retail giant holds planning conversations in Q1 and buying conversations in Q4.

Agency & martech readers - As I briefly mentioned, keep Walmart on your radar for a future media review. If it does conduct one, it will likely be followed by additional agency reviews, and it would follow our suggestion that reviews would follow the company's appointment of CMO William White in April 2020. Right now, Lopez Negrete Communications handles digital, and Walmart has an in-house creative team.