Why does Walmart want TikTok?

A thread.

Brands used to create ad campaigns once a year. Maybe twice. They ran 30 second spots during prime time TV. This worked when we all watched ER together. Or Friends. Every Thursday.

It doesn't work now.

Instead we are all watching different content at different times of day almost entirely through our phones or apps on our phones (Netflix is an app).

Advertising as a result gas gotten more complex.

And at the same time who is influential to a consumer has changed.

If we all aren't watching ER together. That means the George Clooneys of the world don't exist as much as they used to.

Instead, we have increasingly what we call "micro influencers". Normal people (teens!) That amass huge engagment and followings through social channels.

As a brand now, you still need an owned messaged on what TV exist (live sports) and social channels but you also need to tap into this influence and content on these new channels.

TikToks algorithm is developed to keep you on their platform for 80 minutes a day!

So say you are Walmart. You sell a lot of stuff. A lot of brands. Your biggest competitor Amazon has built a content space. But frankly doesn't have a lwg into social influence.

Enter Tiktok.

For a small price (relatively) you get: influence and content to sell your products.

Better yet: you make revenue from competitors who pay for this influence and content.

It's worth the investment and risk.

End thread.