Walmart Sponsored Products saw significant growth over the past year. In Q1 of 2021, more than twice the amount of advertisers were using Walmart Sponsored Products than in Q2 of 2020, according to a new report [download page] from Tinuiti.
Walmart Sponsored Products allows advertisers to target inventory both on and off Walmart through Walmart Connect. The platform utilizes a first-price auction method, making it stand out among other ad platforms. Advertisers gain more control over their CPC with this method, but may find themselves paying more for ad spots with little competition.
The report, which uses anonymized advertiser data from Tinuiti’s platform, shows that throughout the time periods measured, CPC varied. While there was a 3% growth in Q3 2020 over the previous quarter, CPCs decreased by 6% in Q4. CPC recovered in Q1 of 2021, but only slightly, increasing by 1% over the Q4 2020.
The majority (79%) of spend on Walmart Sponsored Products went towards automatic campaigns, meaning advertisers chose to rely on the platform’s algorithm for best results. Only 21% of spend was allotted to manual campaigns, allowing advertisers to submit their own keywords and get more performance insights once a campaign is complete.
Search placements significantly outperformed browser results in both CTR and Sales per Click. Sales per click for Browse placements are 46% of what they are on Search placements while CTR for Browse placements are only 1% of what they are for Search.
The full report can be found here.