Walmart is acquiring Vizio: Did Somebody Say “Retail Media Via CTV”?

The deal is a win-win for both partners.

For Walmart, it means additional ad revenue from Vizio’s 500+ advertising clients. It also potentially adds Vizio ad technology that Walmart doesn’t already have in its #retailmedia networks (Walmart Connect and Sam’s Club).

Walmart also gains distribution for its e-commerce offer via Vizio TV sets. Did anyone say “retail media on CTV”? There has been a lot of talk of using #CTV as a @directresponse channel for #ecommerce, but with little to show for it in terms of actual products. This partnership could drive that idea closer to realization.

For Vizio, the deal is a financial lifeline; the company has struggled in recent years. Walmart will also turbocharge distribution for Vizio TV sets.

For advertisers, the major difference will be better advertising targeting data for Vizio inventory (via adding Walmart’s shopper data). This will however also likely command higher ad prices for Vizio ads.

As an additional bonus, the combined platforms will have a greater audience reach, even though there is likely some overlap of the two platform’s demos.

Mostly hailed as a retail media deal, this is also yet another case of ongoing consolidation in the CTV segment, which will further increase competitive pressure on other streamers.

The acquisition is subject to regulatory approval. But the CTV and retail media spaces are so fragmented still that I don’t expect a review to come up with major issues.

Investors like what they see. Vizio’s stock price is up by 15%, Walmart’s by 3%. —

Walmart to acquire Vizio in $2.3 billion deal

https://lnkd.in/gjWHGsDM via @Verge11111