News of Walmart's forthcoming acquisition of Vizio for $2.3 billion signals a shift in the retail and advertising industries. This strategic move is more than just an expansion of Walmart's retail offerings; it's a direct play to bolster its advertising business and footprint. The purchase of Vizio will position Walmart squarely in the Connected TV (CTV) market, where Amazon — with the roll out of Prime Video Ads and expanded sports rights — has also doubled down.

Striking a Balance Between Precision and Scale

With Vizio's 18 million active accounts and valuable advertising partnerships at its disposal, Walmart Connect is optimally positioned to expand its advertising reach within the retail media landscape. This strategic move will also allow Walmart to continue engaging customers off-domain and across various stages of the marketing funnel. Concurrently, the integration of Vizio's Automatic Content Recognition (ACR) data is set to enhance precision, enabling brands to deliver highly targeted and personalized ads based on viewer habits and video consumption. This balanced approach to scale and precision with the addition of CTV could redefine the advertising experience on Walmart Connect.

E-commerce and CTV: A Powerful Fusion

Following in the footsteps of industry foe Amazon, Walmart looks to pair first-party shopper data and closed–loop attribution with their own proprietary CTV platform. When onboarded properly, this newfound offering presents a compelling proposition for advertisers, combining the precision and attribution of digital advertising with the expansive reach and innovation of Vizio’s Smartcast Operating System.

Harnessing the Power of ACR Data

ACR technology, which gathers data on viewer habits and consumption patterns on smart TVs, offers valuable insights that can be leveraged for highly targeted advertising.

However, the industry landscape for ACR data is becoming increasingly fragmented. Industry providers like Samsung and Roku already maintain an exclusive stance, making their ACR data available only via their respective owned-and-operated platforms. With the acquisition of Vizio, it's likely that its large-scale integrations will also become exclusive to Walmart, adding another level of fragmentation to the ACR data landscape. This exclusivity could potentially reshape strategies for advertisers and media agencies navigating the evolving connected TV market.

Shifting Dynamics: Impact on Partnerships and Competition

As current partnerships and contracts surrounding Walmart's first-party data and tech integrations draw to a close, Walmart is likely to reassess and revamp its partnerships within the retail and advertising sectors. Walmart will be out in the market actively selling CTV and directly competing with Amazon, Roundel and other retail networks. The acquisition of Vizio serves as a significant catalyst for these changes, leading to a redefinition of partnerships and competition within the industry.

The Kepler Advantage: Navigating the New Era of Walmart

At Kepler, we view the impending integration of Vizio by Walmart as a pivotal event, aligning perfectly with our mission to navigate the dynamic digital landscape with unparalleled precision and foresight. Our unique advantage lies in our ability to leverage our global network of expertise, enabling us to capitalize on industry shifts such as this one. As Walmart embarks on this significant journey to reshape the retail and advertising ecosystems, we at Kepler are primed to offer strategic insights and innovative solutions that harness the full potential of such integrations. This strategic shift extends beyond the expansion of a retail giant's portfolio; it sets a new precedent for how retail and technology can synergize to enhance consumer experiences and advertising outcomes. As the industry prepares for this transformation, Kepler stands ready to guide our clients, ensuring they remain at the forefront of innovation and impact.