Will shoppable ads help Walmart’s Vudu compete with Amazon and Netflix?
Walmart’s Vudu video streaming service is following Amazon and Netflix in creating original programming to attract viewers. Unlike its rivals, however, Walmart will continue to offer Vudu as a free, ad-supported service rather than seeking subscription income. Management believes it can do this because of “new advertising technology” that will enable viewers of the shows to buy the products they see on the screen.
Bloomberg reports that Walmart has already lined up “tens of millions of dollars in upfront advertising” as brands look to cash in on the shoppable content opportunity.
The first program being produced is a series based on the “Mr. Mom” movie. The show, built around a stay-at-home dad, is emblematic of the family-friendly content that Walmart is planning to support, rather than big budget epics like Netflix’s “Game of Thrones.” Bloomberg reports that Vudu’s program budgets will be more like shows found on basic cable.
Shoppable content has become a larger part of the social media experience, with Instagram, Pinterest and others looking to connect engaged consumers with consumer direct brands and retailers. Last month, Instagram introduced Checkout, a new feature that enables members to buy items they find in their feeds without having to click out of the app. Checkout provides a secure shopping experience and stores members’ payment information so a separate log-in is not required.
- Walmart Bets on TV Shows for Families, Date Night in Media Push – Bloomberg
- Walmart’s Plan to Decimate Netflix Is Reportedly ‘Shoppable Content’ – Gizmodo
- Can Instagrammable moments turn into immediate and direct sales? – RetailWire
- Visually rich social content produces ‘shoppable’ experiences for retailers – RetailWire
DISCUSSION QUESTIONS: Will original programming with shoppable content help Walmart draw audience market share from Amazon, Netflix and other streaming competitors? If the service proves successful, what do you think it will mean for Walmart’s retail sales?