Walmart doesn’t want to just sell groceries and t-shirts. It wants to be a media and advertising giant like Amazon.
Walmart doesn’t want to just sell groceries and t-shirts. It wants to be a media and advertising giant like Amazon.
Walmart announced Tuesday that it’s buying TV maker Vizio for $2.3 billion to shore up its advertising business and create a more potent rival to Amazon’s booming ad business.
Walmart currently sells ads at physical stores and its website. By acquiring Vizio, Walmart can now sell ads through streaming services on television.
“This accelerates Walmart’s advertising as it moves into streaming TV opportunities,” said Andrew Lipsman, an independent media analyst.
The acquisition could make Walmart a bigger presence in the TV streaming wars, especially if Walmart acquires a streaming service, Lipsman said.
Roku, a streaming competitor, last week noted that television advertisers are increasing the amount they spend on streaming ads as customers continue to cut the cable cord. Roku and Amazon sell advertising space on their various streaming channels and home screens, and they sell licensing arrangements for companies to put their brand on certain shows. They also sell space to apps and media channels to advertise their movies and shows on customers’ screens.
Walmart believes it can add revenue by offering brands the opportunity to advertise on Vizio televisions.
