Google Express and Walmart Partnership: Potential Impact on Advertisers, Consumers and the Ecommerce Industry

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Google Express and Walmart Partnership: Potential Impact on Advertisers, Consumers and the Ecommerce Industry


Key Takeaways

  • The Walmart/Google alliance is directly fueled by Amazon’s dominance in ecommerce
  • Google will stem erosion in Google product searches and push ecommerce acceleration
  • Walmart will achieve immediate growth in consumers, online presence and ecommerce sales
  • The partnership will allow advertisers to reach consumers through multiple outlets and will spark new innovation connecting search to ecommerce and products to conversion
  • Consumers will have streamlined access to purchasing via Google Payments

Background

Google has recently announced a partnership with Walmart to bring nearly 1 million Walmart SKUs to Google Express delivery service. This deal marks the first time a major ad player has integrated horizontally with a retailer rather than investing vertically in proprietary products. While this deal does not include inventory from Jet.com or Walmart’s apparel sites, it is the first time Walmart has allowed its products to be sold online outside of Walmart.com. Both parties stand to gain a larger share of product searches and ecommerce sales across Google and Walmart’s existing customer base.

This briefing provides insights into the potential impact of this newly found partnership between Google Express and Walmart. For advertisers, this deal will likely provide additional outlets for advertisers to reach consumers. And for consumers, we will likely see an increase in competition between the likes of Amazon and Walmart/Google Express.

Impact on Key Players

Advertisers

This partnership will create new opportunities for advertisers. As Amazon currently holds rank as the go-to ecommerce engine, this new deal will allow Google Express to accelerate its growth within the industry. It also creates competition, which will ultimately move advertising along in the ecommerce sector. This also generates the ability for advertisers to connect more with consumers through multiple outlets, increasing the probability of conversion, along with creating more innovative products, sparking consumer interest.

Initially, CPG and OEM brands may see a gradual increase in Walmart.com sales if consumers begin to purchase more online than in-store at Walmart locations. Over time, the greatest advantage for advertisers and brands will be increased confidence in measuring online to offline sales – while Amazon remains a black box for conversion tracking, Google brings the full breadth of its open tech stack and ad network to the table. An increase in digital sales through Google Express will mean an increase in digital measurement and sales attribution for all participating online retailers.

Consumers

Besides Google and Walmart, the benefits of this deal will largely impact consumers. For one, Google will be waiving the annual Google Express membership fee of $95 and will provide free 2-day delivery for orders over $25. For existing Google Express customers, the number of products available for 2-day delivery just increased dramatically. While most Walmart.com customers already receive 2-day delivery for online purchases, Walmart consumers will be able to link their Google and Walmart accounts to enable Google Payments, a feature similar to Amazon’s “Buy With 1-click” feature. Existing Walmart customers will also gain access to the open marketplace Google Express offers which includes inventory from brands like Costco, Target and Kohl’s.

Ecommerce Industry

Both Google and Walmart stand to gain momentum towards countering Amazon’s dominant ecommerce lead with this mutually beneficial partnership. While Amazon’s market share is well-established for both online purchasing and voice-enabled shopping via Alexa, Google may benefit from the fact that most Walmart customers are not yet Amazon Prime members. Google Express may be the first experience Walmart customers have with streamlined delivery services.

To date, Google Home has lagged behind Amazon Alexa for voice-assisted shopping. By linking Walmart and Google Express accounts, consumers will be able to order Walmart products using voice-enabled devices like Google Home and/or Google Assistant. Google Home may gain ground on Amazon Alexa as Walmart households begin to adopt voice assistants into their lives. As most voice-shoppers use voice to make repeat purchases for household staples like paper towels or laundry detergent, this move will help both Walmart and Google apply predictive modeling to how frequently households are replenishing certain products.

While it is unclear whether or not Google and Walmart will directly share customer data with one another, this partnership creates an opportunity for Google to integrate its full stack of sales measurement capabilities with Walmart’s online and offline data. Data sharing between both companies may also create new conversion measurement opportunities for CPG and OEM brands who are restricted from linking Amazon sales data to their CRM databases. It should also be noted that Google’s advertising network, digital product stack, and measurement of offline sales stretches well beyond Amazon’s current capabilities.

For more info. on advertising on Google, Walmart.com, and Amazon, contact Performics today.


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