Wal Mart said on Thursday it was confident it could meet the expectations of tiktok users in the US and allay concerns from US regulators. Last year, Wal Mart platform advertising business for the first time to large consumer goods companies and advertising companies.
A person familiar with the matter told media on Thursday local time that byte hopping, the parent company of tiktok, plans to close a deal to sell tiktoks US business by September 15.
Scott smigler, President of exclusive concepts, an e-commerce marketing agency, said: if Wal Marts acquisition plan is successful, its advertising business will grow rapidly.
Last week, Wal Mart reported its biggest ever growth in online sales, as demand surged unprecedentedly during the blockade imposed by the new coronavirus pandemic, and demand remained strong after the embargo was relaxed.
For Wal Mart, as consumers increasingly turn to online shopping, it is more important than ever to find new ways to win market share from Amazon, its closest e-commerce competitor.
Amazon reported $4.2 billion in advertising and other revenue in the last quarter, almost double the same period two years ago. Compared with the same period last year, the number was up 41%.
Websites of retailers such as targetcorp and Tesco are also actively attracting advertising from large advertisers, helping advertisers to promote sales through online advertising forms such as pop-up banners and search bar keywords. In July, Walmart media group, Wal Marts advertising platform, launched new features to increase its appeal to advertisers.
To build its online brand strength, Wal Mart bought bonobos for $310 million in 2017 and for undisclosed amounts in 2018 Art.com u3002
In 2010, after the acquisition of Vudu, Wal Mart launched a new VOD service, which provides free streaming media service selection with advertising support. However, Vudu still lags far behind competitors Netflix and Hulu. In April, Wal Mart sold Vudu to Fandango media, a film ticketing service owned by Comcast Corp.
Investors believe Wal Marts acquisition of tiktok, if successful, will be a victory.
Randy hare, portfolio manager at Huntington private bank, said the value of the return on Wal Marts successful acquisition of tiktok would be incalculable.
Its clear that the market is excited about [tiktok] because it can really help Wal Mart open up new advertising channels, Harley said (Tianmen Mountain)