Improving Digital Penetration on Walmart: Strategies for Success

Many sellers ask, “Why am I spending more on Walmart ads but not seeing more results?” This is a common challenge for businesses trying to scale their presence on Walmart Marketplace. It’s easy to assume that high traffic means higher sales, but without the right strategy and optimization, your efforts might not yield the results you're hoping for. This blog will walk you through actionable strategies to improve your digital penetration on Walmart, drawing from insights shared in our recent session with industry experts.

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The Three Pillars of Walmart Success

To successfully penetrate Walmart’s digital marketplace, you need to focus on three essential pillars: Content, Media, and Promotion. These pillars build on each other and are integral to gaining visibility, improving sales, and scaling your business.

1. Content - This is the foundation of your digital presence on Walmart. Strong content is essential for visibility and ranking.
2. Media - Optimizing your ad strategy ensures that your content gets the visibility it deserves. It amplifies the reach and reinforces the rankings.
3. Promotion - Promotions drive visibility, but they only work when content and media are optimized and aligned.

Content Optimization: Setting the Foundation

Before diving into the media and promotions, you need to ensure your content is set up correctly. Here’s how you can optimize it:

1. Pre-Content Check: Taxonomy

Start by selecting the correct product type and category path. The right category placement ensures that your product is discoverable for the right search terms. For example, placing your product in the correct bucket (e.g., “Lip Balm” vs. “Chapstick”) can significantly improve your chances of ranking for a variety of related keywords.

2. Content Optimization: Keywords and Copy

Your title is the most impactful for visibility and ranking. Make sure your title includes strategic, high-relevance keywords that align with what customers are searching for. High search volume doesn’t always mean high relevance focus on keyword relevancy to boost your discoverability.

3. Content Quality Score (CQS)

CQS is a critical metric that influences how your product ranks, but it’s not a guarantee for success. A high CQS (>95%) is necessary but does not guarantee visibility. A perfect content score does not mean your listing will perform well without the right taxonomy and keyword strategy. Therefore, optimize both the content and category to boost performance.

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Media: Maximizing Ad Spend Efficiency

Once your content is optimized, it’s time to focus on media to amplify your reach.

Sponsored Rank: Bid x Relevancy Score

Walmart’s auction model is based on a combination of bid amount and relevancy score, not just the highest bid. To improve your chances of securing the top position, focus on improving your product's relevancy compared to top-ranking products. For example, ensuring that your product type and category path align with high-ranking products can increase your chances of securing a top spot at a lower cost.

Second Price Auction

Walmart operates on a second-price auction model. This means you can win the auction by bidding less than your original bid. For example, if you place a bid of $1 and the next highest bid is $0.50, you’ll only pay $0.51. This incentivizes efficiency in your bidding strategy.

Efficient Spending Strategy

Maximize your ad spend by lowering bids for high-ranking items and increasing bids for lower-ranked items. This strategy ensures you’re getting the most out of your advertising budget while boosting your product's visibility.

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Data-Driven Insights: Leveraging Key Metrics

Data is a powerful tool for optimizing your Walmart strategy. By leveraging key metrics, you can make informed decisions about where to allocate your resources.

Key Metrics to Track

• Ad Data: Focus on Return on Ad Spend (RoAS), impressions, clicks, and conversions (CVR).
• Ranking Data: Monitor both your organic and sponsored rank.
• 3P/Scintilla Insights: Use third-party data to track share of voice (SOV), add to cart share, and sales rank at the product-type level.

These metrics will help you determine which areas of your strategy are performing well and where improvements are needed. Use this data to fine-tune your ad spending, optimize keywords, and improve your store’s overall business performance.

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Promotion: Driving Visibility and Sales

Once your content and media are optimized, promotions can help push your product visibility to the next level.

External Traffic

Leverage external traffic sources like TikTok influencers, Google Shopping Ads, and publisher websites to drive more visibility to your Walmart listings. These external sources help boost your rankings, especially for 1P items, by bringing targeted traffic from customers already interested in products like yours.

Influencer Marketing

Partner with influencers to create organic content for your products. Use Spark Ads to amplify this content and target specific users within a defined radius of retail stores. Influencer-driven content can significantly improve brand credibility and drive more sales.

Publisher Traffic

Platforms like Slickdeals.com and BestReviews can be powerful allies in driving traffic to your listings. By distributing your content on these trusted platforms, you can increase your brand’s credibility and gain visibility among shoppers already researching products.

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Conclusion: Building Your Path to 1P Growth

To truly optimize your Walmart presence, leverage 3P data to prove your product’s worth, build momentum during high season, and then transition to 1P to unlock better margins and retail opportunities. As your products gain traction, you can secure in-store placements, benefiting from increased visibility and sales. This growth journey is powered by effective content, media optimization, and strategic promotions.

With these strategies, you’ll be well on your way to improving your digital penetration on Walmart and achieving sustainable growth. Start with the foundation optimize your content, media, and promotions and leverage data to refine your strategy.

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