Axios has a story about how “mass market retailers and grocers are developing their own content and advertising businesses to compete with legacy media.”
The reason? “Ad-serving and video creation has become so democratized that any company with an audience is now able to steal advertising dollars or content budgets away from traditional media companies.”
Walmart’s consideration of a new video streaming offering - which would be positioned as competition to Amazon and Netflix, but could be ad-supported - is just one example of how retailers are getting into the media business. The story notes that Kroger “is launching an ad business that will go live next year. Similar to Walmart and Amazon, Kroger's pitch, according to Digiday, is that it will help brands better target its loyalty customers across the web, mobile and in stores across the country with advertising.” And Albertsons “also launched its own ad network called Albertsons Performance Media.”
Axios writes that “a focus on digital media is a reflection of some of the many ways retailers are transforming their brick and mortar mega-stores to be more digitally-accessible and profitable.” But, the story says, these “retailers are entering a crowded field of media, tech and telecom companies that already have their own streaming services, like CBS, and Facebook, as well as ones that are expected to build new ones, like Disney, AT&T and Apple.”
The reason? “Ad-serving and video creation has become so democratized that any company with an audience is now able to steal advertising dollars or content budgets away from traditional media companies.”
Walmart’s consideration of a new video streaming offering - which would be positioned as competition to Amazon and Netflix, but could be ad-supported - is just one example of how retailers are getting into the media business. The story notes that Kroger “is launching an ad business that will go live next year. Similar to Walmart and Amazon, Kroger's pitch, according to Digiday, is that it will help brands better target its loyalty customers across the web, mobile and in stores across the country with advertising.” And Albertsons “also launched its own ad network called Albertsons Performance Media.”
Axios writes that “a focus on digital media is a reflection of some of the many ways retailers are transforming their brick and mortar mega-stores to be more digitally-accessible and profitable.” But, the story says, these “retailers are entering a crowded field of media, tech and telecom companies that already have their own streaming services, like CBS, and Facebook, as well as ones that are expected to build new ones, like Disney, AT&T and Apple.”
- KC's View:
