Jan 9, 2020 12 min read
Walmart's Sponsored Products and How Brands can Use Them
Updated: January 9
Sponsored Products are here. We have been working closely with Walmart to prepare the Pacvue eCommerce platform to support bid management for the latest major paid search channel on the market. We are very excited to empower Pacvue users to optimize their campaigns across multiple digital advertising channels, now with full support of Walmart Sponsored Products.
So, what exactly are Sponsored Products? Let's talk about how they work, who is eligible and how brands can begin leveraging this important new advertising channel.
Sponsored Product Ads
Walmart is the largest retailer in the US. According to Adobe Analytics research shared with us by Walmart, the retailer reached 95% of US households in 2018 and served over 160M customers per week across its various channels. With this in mind, the launch of Sponsored Products provides brands with a major new way to reach and influence consumers. Walmart's Sponsored Product ads have been designed to target shoppers who visit Walmart.com to discover, research and buy products.
Sponsored Products are pay-per-click ads that appear in three locations on Walmart.com: alongside organic search results, on related product detail pages (PDPs), and in Sponsored Product carousels.
To be eligible for Sponsored Products, a SKU must:
The above eligibility requirements also contribute to a SKU's relevancy score and the winning Sponsored Products are selected (and their placements are chosen) based on a combination of relevancy and bid.
Walmart uses a first price bidding auction. Advertisers bid on key terms and items, setting their bid at the maximum they're willing to pay per click. Then the winning bidder pays the exact value of their bid each time someone clicks on the ad placement.
Sponsored Product campaigns come in two forms: automatic and manual. When launching an automatic campaign, you allow Walmart to determine the optimal placement for ads based on the information contained in the product title, PDP content, category and related products. Product Carousel and Buy Box Banner placements are only awarded to automatic bids.
The advantage of automatic campaigns is how they mine for new terms. They allow your products to leverage terms used by previously undiscovered customer segments, high-performing terms used by competitors, and long-tail research terms you might overlook. And because bids can be set and optimized at a per-product level, you can eliminate the challenge of fine tuning specific bids for dozens of different terms.
Manual campaigns involve bidding on specific keywords. You choose the keywords and max bids and assign one of three match types:
Manual bidding requires more input upfront in exchange for transparency and full control over your campaign, allowing you to leverage your unique knowledge of your product and customers and develop a sophisticated paid search strategy tailored to your marketing goals. Manual Sponsored Product ads appear only on the search results page, alongside organic results.
Your First Campaign
Sponsored Products have been designed to drive traffic to your PDPs, increasing sales, visibility and your organic search rank in turn. Use paid placement to grow your market share by increasing page views and share of voice, and defend your pocket of the digital shelf by driving volume and controlling your most valuable keywords. Follow these steps to craft your first campaign:
We're planning to answer all of your questions about Walmart's growing advertising platform in the coming weeks. To make sure you don't miss the latest news, product updates and best practices from the leading eCommerce marketplaces, follow the Pacvue Blog.
Start diversifying your ad portfolio today. Contact us to set up a free demo and learn how to balance your budget across Amazon, Walmart and other ad platforms, increase your ROI and reach more customers.