Tag Archives: television

by | Thursday, April 11, 2024 · 7:22 am

Walmart Buys VIZIO to Grow Advertising

No longer content to be just a retail powerhouse, Walmart wants to expand into the advertising business and compete with online rival Amazon. To that end, Walmart is buying smart TV manufacturer VIZIO for $2.3 billion.

Why buy VIZIO? Mainly because VIZIO’s SmartCast Operating System will allow Walmart to connect with consumers using innovative entertainment. (Or should we say it will allow Walmart to advertise more easily.) VIZIO has more than 18 million accounts on SmartCast, which offers free, streamed content that is supported by ads. VIZIO’s advertising business has more than 500 direct advertiser relationships, including a number of Fortune 500 firms.

Today, Walmart does sell ads at its 10,500 physical stores and websites. But once it acquires VIZIO, Walmart will be able to sell ads through streaming services on televisions, similar to how Roku and Amazon operate.

Walmart stores serve 160 million visitors each week; a whopping 90% of all Americans shop at Walmart. And while Walmart’s advertising business generated revenue of $3.4 billion, that amount is less than one percent of its total retail sales. Compare this to Amazon which generates ad sales of about 15% of its total sales and the reason for the acquisition becomes clearer.

By buying VIZIO, Walmart keeps its valuable shopping data and gains operating systems and hardware that are used to deliver ads. It expands Walmart Connect, which brings advertising partners into contact with its extensive customer base through sponsored products ads.

Group Activities and Discussion Questions:

  1. Discuss the various approaches for promoting products.
  2. Show Vizio website: https://www.vizio.com/en/home
  3. Show Walmart Connect website: https://www.walmartconnect.com/
  4. Divide students into teams. Have each team analyze how Amazon and Walmart use sponsored ads to drive sales.
  5. In teams, have students develop a promotional plan that uses VIZIO to advertise.

Source: Meyersohn, N. (20 February 2024). Why Walmart is buying Vizio. CNN Business; Peiser, J. & Gregg, A. (20 February 2024). Walmart to buy TV maker Vizio for $2.3 billion to expand advertising. The Washington Post; other news sources

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by | Wednesday, August 16, 2023 · 7:30 am

Pssst… Want a free TV?

Telly: “Who wants a free television?”  

Me: “Me! Oh, wait. Is it a teeny tiny screen? Must be small or a poor screen to make it free. And there must be a charge somewhere…”  

Telly: “No, it’s not teeny tiny. It’s a 55-inch 4K television! And it’s free!”  

Me: “Wow. Then me! I want a free TV!”

Telly: “Great. There’s just one catch though. You also have to install a separate second display underneath that constantly displays ads and other information. That means all the time.”  

Me: “Hmmm….I’ll think about it.”  

While the above isn’t an actual conversation, it could be. And yes, a company named Telly is giving away 500,000 units of a 55-inch 4K televisions with a second screen. The second screen is located beneath the large screen and can show advertising, sports scores, and stock quotes based on a survey of the viewer’s information and interests. Telly is also equipped with a soundbar that includes a microphone and motion-tracking camera, and voice assistant.  

Telly starts with a survey gathering personal information plus information about cellphone provider, home ownership, household income, vehicle ownership, children, pets, and more. This information is used for selecting targeted advertising to viewers.  

Telly also collects information about what you watch, search for, others in the room, plus locations, geo-positioning, and more personal data. The data-gathering is required in order to retain the TV as free. And, even if you are not watching TV it will display ads.  

More than 250,000 people across the U.S. signed up in the first week Telly was offered. The company plans to distribute 500,000 units by the end of the year.  

Do you still want that free TV?      

Group Activities and Discussion Questions:

  1. Show video about Telly: https://youtu.be/RsQ-RCe5YKA
  2. Show Telly website: https://www.freetelly.com/
  3. Also show Telly Terms of Service page: https://www.freetelly.com/terms-of-service
  4. Poll students: Who wants a Telly?
  5. What are the challenges Telly has to solve?
  6. Who is the target market for Telly?
  7. What is its appeal to consumers?
  8. What is its appeal to advertisers and companies?

Source: Fried, I. (17 May 2023). Telly’s free TV is latest take on ad-supported hardware. Axios.com.; Graham, M. (19 July 2023). A billboard for the living room? How Telly want advertisers to pay for your TV set. Wall Street Journal.

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by | Wednesday, February 17, 2021 · 9:35 am

2021: Super Bowl 55 Advertisements

Winter is cold, but the Super Bowl always pumps up the heat! The Super Bowl has become one of the premier venues for marketers. The thrills, the chills, the excitement and surprises – and that’s just the advertisements! At a cost of $5.6 million for 30 seconds of air time, the Super Bowl is also the most expensive advertising placement of any event or show. Add to the air time the costs of designing and producing ads, plus the integration into other marketing tactics, and a company can easily spend upwards of $6 million on a single day.

Love them or hate them, Super Bowl advertisements have become a talking point before, during, and after the game. It’s a big stage, and can also be a big risk. This year, a Jeep advertisement featuring Bruce Springsteen backfired when news surfaced that Springsteen had received a DWI citation in November. Other criticism was about the lack of inclusion and diversity. Of the 67 public figures who appeared in the ads, only 18 were Black, 14 were women, one was Indian American, one was Asian American, and five were of multiple ethnicities.

This year an audience of 92 million adults in the U.S. tuned in to watch the Tampa Bay Buccaneers dominate the Kansas City Chiefs. The game had a 38.2 U.S. household rating and was viewed in an average of 46.2 million homes, far lower than previous years. Roughly 68% of U.S. homes in use were tuned to the Super Bowl.

The average amount spent per person was $74.55, a decrease from last year’s $88.65. Most is spent on food and drinks at 77%. As to who watches the big game, only 35% of Gen Z watch, compared to 54% of Millennials, 51% of Gen X, and 52% of Baby Boomers.

Which ad is your favorite?

Group Activities and Discussion Questions:

  1. Show the Nielsen data: https://www.nielsen.com/us/en/press-releases/2021/super-bowl-lv-draws-nearly-92-million-tv-viewers/?utm_campaign=Corporate%20Marketing&utm_medium=Email&utm_source=SFMC&utm_content=Newswire%20Newsletter&utm_id=02_10_2021
  2. Bring up one of the Web sites that have all the Super Bowl ads: https://www.ispot.tv/events/2021-super-bowl-commercials
  3. Divide students into teams. Have each team select a Super Bowl ad to analyze and present in class.
  4. What is the target market, key message, and offer from the ad?
  5. How does the ad integrate with a company’s other advertisements?
  6. Are the messages integrated with a company’s Web site and social media?
  7. As a class, after each commercial have students assign one to five stars for the advertisements. Which advertisement won the class vote?

Source:  Ad Week; CBS; iSpot.tv; Nielsen Research; other news sources

 

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