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Home / Business / Walmart acquires Adtech startup Polymorph Labs to expand its advertising business – TechCrunch

Walmart acquires Adtech startup Polymorph Labs to expand its advertising business – TechCrunch



Amazon has a large and growing advertising business, but its own rival Walmart's advertising business is much smaller. Now they are working to change that. Earlier in the year, the retailer consolidated ad sales for its stores and websites, saying it was ready to monetize buyer data on a larger scale. Today, Walmart continues its efforts to have bought the advertising technology company Polymorph Labs to improve it with online digital ads based on customer data.

The terms of the deal were not disclosed.

The San Francisco-based startup technology and resources will enable Walmart to deliver more relevant ads to online shoppers, according to the retailer. In the meantime, Polymorph's team will be part of Walmart's internal advertising business, the Walmart Media Group.

Polymorph technology includes a high-speed ad server, a self-service interface, and server-side header bids. According to Walmart, this will facilitate the promotion of thousands of brands and provide consumers with more relevant ads ̵

1; faster than would normally be possible with Polymorph's "much faster" client-side server.

The technology complements Walmart's existing ad-tech investments, including the ad-targeting and metering omni-channel solution, which enables him to move later into new areas such as real-time auctions across multiple pricing models (cost per click, cost per click) Impression and cost per conversation).

At Walmart, Polymorph's technology enables advertisers to target segments based on shopping behavior.

For example, an advertiser might opt ​​for a cat food buyer instead of a dog food buyer, then automate ad serving and measure whether those ads lead to sales

The takeover takes place just months after Walmart placed its ad sales internally to build a larger advertising business. The move also allows large suppliers – such as P & G, Unilever and Mondelez – to interact with an advertising team instead of different groups inside and outside the retailer.

In addition, advertisers can leverage a unique combination of in-store and online shoppers' data from Walmart's hundreds of millions of customers, making it more efficient to buy ads.

The takeover comes at a time when Amazon quickly increased its advertising revenue by allowing merchants to pay for better placement in search ads. Research firm eMarketer raised its estimates in February about how big Amazon's advertising business had become. Amazon's advertising revenue in 2017 would have been $ 3.3 billion, compared to a previous estimate of $ 1.9 billion. Amazon said it was well on track to raise its advertising revenue to $ 15 billion by 2020.

Walmart, on the other hand, has room for growth.

"We have a tiny advertising business," CEO Doug McMillon told investors last October, according to a Bloomberg report. "It could be bigger."

Walmart says 90 percent of US consumers shop at Walmart each year, and their stores and websites attract nearly 160 million visitors each week. The number of website visitors is declined, but ComScore estimates the monthly assets of over 100 million.

Walmart says next month's "Fifty-Two Sixty", featuring CMOs, agency people, and seasoned brand sales reps, will be addressing hobnob with Walmart executives to talk about brands, thinking about their trading strategies.

"Walmart Media Group enables brands to reach more customers and measure advertising effectiveness throughout the shopping process," said Stefanie Jay, vice president and general manager of Walmart Media Group, commenting on today's news. "Put simply, we can help brands understand if they've seen their ad on the Walmart platform or the Internet, and then bought the product online or in-store. No one else can do this on scale like Walmart. "

Polymorph Labs was founded in 2013 and has proven its ad technology over the last five years, Walmart said. Previously known as AdsNative, Polymorph Labs had raised $ 10.6 million, according to Crunchbase of Rakuten Ventures, Interwest Partners, and Onset Ventures.

The company employed fewer than 50 employees, including full-time employees and contractors. Founders Satish Polisetti (CEO) and Dhawal Mujumdar join forces, and Walmart offers offers to the full-time team.


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