Walmart is interested in going in with Microsoft to buy the U.S. operations of popular social video app TikTok, and the retailer’s motivation for buying in likely has a lot to do with digital ad dollars.
At first blush, you might imagine Walmart using TikTok as a video component to go along with the Walmart+ membership it plans to offer in answer to Amazon Prime. But TikTok is nothing like the long-form video Prime members get from Prime Video, and shouldn’t be morphed into that. TikTok should just be TikTok.
TikTok is a premier space for digital advertising. Walmart said in a statement that TikTok might present “an important way for us to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses . . .”
Walmart is putting together all the pieces needed to sell programmatic advertising on its sites, similar to what Amazon has done. (Amazon now controls 8% of the digital ad space and its ad business is growing rapidly.) One of…
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Source : fastcompany.com
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