When to Use Sponsored Products on Walmart Advertising & Why

Maria Tobler

October 23, 2020

“How can I generate more revenue?” This is a common question among sellers on ecommerce sites. You can improve your success as a seller on Walmart or Amazon by having accurate and detailed product descriptions, high quality product images, optimizing SEO content, etc. However, those elements will only get you so far.

What is the next logical step? In most cases, advertising is your best bet! Below you will find out when you should start advertising on Walmart.com (read our starter guide to Walmart advertising) and why it’s so important. Whether you’re new to Walmart or a seasoned seller, here’s some advice for you if you’re taking the next step to grow your brand.

Why pick Walmart Sponsored Products

First you must decide what kind of ad type makes sense for you as a seller. We recommend Sponsored Products if you’re new to Walmart advertising. This ad type gives you the ability to control your campaigns and budgets, whereas the other ad types on Walmart are managed by the Walmart Media Group (WMG).

Sponsored Products are advantageous since they place your product in front of shoppers during different stages of their journey, increasing your visibility. This type of ad can show up on: 1) the first page of search results alongside organically ranked products, 2) product detail pages that are related to your product, and 3) in Sponsored Product carousels throughout search pages and product pages.

Walmart Advertising, Sponsored Products Best Practices | Pattern

Sponsored Products eligibility requirements

Before considering whether or not launching Sponsored Products is the right move for your business, you should consider Walmart’s eligibility requirements.

In order to ensure that your ad is able to show up on the first page of search results, the product must:

  • Be in stock
  • Win the Buy Box
  • Appear in the top 128 organic search results (manual campaigns only)
  • Be categorized as relevant to the search query
  • Be considered as the same type of product as at least one other organically ranked product within the top 20 ranked products

What new Walmart sellers should know about Sponsored Products

Chances are, if you are new to Walmart, your product does not rank within the top 128 organic search results. However, this does not mean that you cannot utilize Sponsored Products. In this case, you will want to take advantage of automatic campaigns.

This type of campaign is governed by Walmart’s algorithm, which chooses when and where to display the ad based on the keywords you use in the product title, descriptions, and other sections of the product detail page. You should optimize your listing before launching a Sponsored Product campaign to assure you’re able to convert shoppers once they decide to click on your product.

To set up your first automatic campaign, you will have to set a total campaign budget of at least $100 and the daily budget needs to be $50. This doesn’t mean that you end up spending $50 per day. Automatic campaigns allow the advertiser to set the bids on the item level. This will ultimately determine the level of spend behind your campaign. You can optimize the campaign by changing the bid throughout the lifetime of the campaign.

You should know that automatic campaigns are Walmart’s recommended first step for anyone doing Sponsored Products. The reason behind that is that automatic campaigns build relevancy around your product, which in turn helps to improve your organic search rank. This is also the only self service option Walmart currently offers.

Learn more about how to measure Walmart advertising campaigns.

What established Walmart sellers should know about Sponsored Products

If you have already built relevancy behind your listings on Walmart, you are in luck. Venturing into advertising should be an easy next step for you. As more brands are starting to trickle into the Walmart hemisphere, it is becoming an increasingly competitive marketplace.

This is why it is so important for you to defend your space on Walmart. Advertising allows you to do this. An easy next step is to use Sponsored Products. Beyond that, you could collaborate with the Walmart Media Group (WMG) team in order to set up other ad types such as native banner ads, catapult ads, or site search features.

These ad types require a larger investment up front, which is why Sponsored Products can be advantageous, since you control the level of investment and how the campaigns are run.

Use both automatic and manual campaigns

As an established seller, you should utilize both automatic and manual campaigns. The automatic campaign will continue to grow your brand and product relevancy. You most likely have a sense of what search terms are working well for your brand on Walmart, which is where the use of manual campaigns can be helpful.

Take note of which search terms your product appears in the top 128 organic search results for. We recommend you to bid heavily on these keywords in order to get your product to the top of the first search page. In order to grow your brand, you should target category terms within the category your product is in.

However, to defend your space against competitors on Walmart.com, you may also want to target branded search terms that pertain either to your brand or your products. We recommend you to split up brand awareness and brand defense campaigns for reporting and optimization purposes. This will give you a clear indication of how each pool of keywords perform and help to grow your brand.

The pay-per-click based Sponsored Product ads on Walmart can change the game for your level of growth, because they can increase the visibility of your listing and allow you to launch new products or drive traffic to seasonal ones. There are benefits to using these no matter where you are in your seller journey on Walmart.com. The automatic campaign helps you to get off the ground and once you are more established, the manual campaigns allow you a degree of control over where you want to appear throughout Walmart.com.

If you’re interested in consulting with Pattern’s in-house advertising team of experts, schedule a demo with our Predict rules-based advertising technology.

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Sept 27, 2022

Global Ecommerce Weekly News: 27th September 2022

Get up to date with this week's ecommerce headlines from around the globe. --- Amazon News --- Amazon drives renewable energy push with 71 new projects Amazon is planning to add 2.7 gigawatts of clean energy capacity through a couple of new projects as the company attempts to use 100% renewable energy by 2025. The ecommerce business will soon have a total of 329 renewable energy projects, generating 50,000 gigawatt hours of clean energy, which is equivalent to powering 4.6 million US homes every year. [Read more on Reuters](https://www.reuters.com/business/sustainable-business/amazon-drives-renewable-energy-push-with-71-new-projects-2022-09-21/) Amazon launches Prime Early Access Sale Amazon is launching a new 2-day shopping event for its Prime members only, beginning on the 11th of October. Across 15 countries, Prime customers will have access to the shopping event, with thousands of deals on offer globall, ranging from fashion to electronics to essentials. The event has the purpose of giving Prime users the chance to spread the cost of items over the winter months, 6 weeks ahead of Black Friday. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/26/prime-early-access-sale/) --- Other Marketplace News --- Shopify unveils new localisation tool Shopify is launching a new localisation tool, called Translate & Adapt, which works with Shopify Markets to offer localisation for sellers who are looking to expand into new markets. The tool translates a user’s online store into different languages, including product pages and information pages. Merchants are also able to create different shipping terms for each market using the new tool, which allows international expansion and offers a more localised consumer experience, unveiling new potential. [Read more on Ecommerce News](https://ecommercenews.eu/shopify-launches-new-localisation-tool/) Etsy is set to invest hundreds of millions into its marketing platform Etsy CEO claims that the company is on route to spend more than $570 million USD on marketing this year. Even during a time of macroeconomic pressure, inflation and rising interest rates, the company is preparing itself and its sellers for the upcoming holiday season and is focused on retaining interest from buyers. [Read more on Yahoo News](https://uk.news.yahoo.com/etsy-600-million-on-marketing-ceo-154054219.html) --- Other Ecommerce News --- Meta looks to cut costs by 10% in the coming months Meta employees are facing job redundancies as the company plans to cut its costs by 10% over the next few months. Meta reported a 22% YoY increase in costs and expenses, totalling over $20 billion USD. The cuts are expected to come in the form of job redundancies as a result of department reorganisations rather than formal layoffs. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/22/meta-to-slash-costs-by-10-over-coming-months/) DHL teams up with Quadient to offer smart locker deliveries in the UK DHL and tech company, Quadient, have partnered to offer smart lockers parcel pick-up throughout the UK. The new contactless, secure locker stations will give recipients more choice and flexibility to receive their parcels at a time and location best suited to them. The partnership plans to install 500 locker stations across the country by the end of 2022. [Read more on Charged Retail](https://www.chargedretail.co.uk/2022/09/21/dhl-partners-with-quadient-to-offer-smart-locker-delivery/) The online fashion market is set to be worth nearly $170 billion USD in 2025 The European online fashion retail market is set to grow 50% by 2025, with an online turnover of $170 billion USD, which is 33% of the retail branch’s total. Cross-border marketplaces prove to be the largest drivers of this growth, with online websites and apps like Vinted largely pushing the market’s online growth. Zalando recently became the largest cross-border fashion retailer/marketplace, responsible for 11.7% of the online market’s share. [Read more on Ecommerce News](https://ecommercenews.eu/online-fashion-market-worth-e175-billion-in-2025/)
Sept 22, 2022

How an Amazon SEO Agency Should Be Serving Your Brand

If you’re in the global ecommerce space, you are most likely aware of Amazon, and probably selling your products on the marketplace. With over $470 billion in sales in 2021 alone, Amazon stands as the third largest company in the world based on revenue. The ecommerce giant is a household name in the U.S. and working hard to grow its market share across five continents worldwide.

Having your products available on Amazon and being competitive there, though, are definitely two different things. If you want to really succeed on Amazon, you’ll need specialized insight into how Amazon works and how to make it work for you. So, for many brands, it’s a great idea to work with an Amazon Search Engine Optimization (SEO) agency.

At Pattern, Amazon SEO optimization service is one of our key competencies. We understand that technology, data-driven insights and expertise  are the most important tools brands can leverage to win top listing spots on digital marketplaces. With expert teams and years of experience, we help brands conquer the Profitability Death Spiral as they compete with other products and sellers online. We offer Amazon SEO agency services as a core solution to brands that need more resources to get ahead. 

What is an Amazon SEO Agency?

An Amazon SEO agency serves brands by improving their products’ rank and listing performance on Amazon. They make strategic decisions about ad spending and placement that lead to higher traffic, conversions, and revenue for ecommerce brands.

A great Amazon SEO Agency partner will:

Prioritize Your Success

Unfortunately, many Amazon SEO agencies profit in unfair ways from your brands’ perceived success based on the ROAS numbers they provide. This is done through including branded search terms in ROAS reports, which naturally skew listing performance

Let’s say, for instance, your brand is called “Annie’s” and you sell lollipops. Your brand has a very high likelihood of winning the top listing spots on Amazon for lollipop search terms that are paired with “Annie’s,” your brand name. So, SEO agencies will spend your ad money on those terms and report a very high ROAS. 

To avoid scenarios like these, it’s best to look for an agency that either calculates their profits on metrics other than your ROAS scores or weighs branded search terms differently in the performance metrics reports. Regardless of your Amazon SEO agency’s cost structure, you should align onbranded search terms before committing to a scope of work.

Provide Detailed Competitive Insight

A great indicator of a high-quality Amazon SEO agency is the level of insight they can provide into your competitors’ listing positioning and how it compares to yours. Data fanaticism is so important at Pattern that we’ve developed proprietary technology to display this exact information with precise detail for every brand we work with. In fact, you can find our free version here to see how you compare to some of your top competitors based on ASIN.

It’s certainly possible to improve your Amazon search performance with blind spending strategies. But a truly great solution will help you to know where your dollars are at their most powerful and competitive.

Reduce Your Ad Spend Over Time

Amazon’s A10 algorithm prioritizes customer satisfaction—it wants to show consumers the best products that align with their search intent to improve conversions and sales. So, the best way to gain momentum on Amazon is to work on incremental wins. 

Improving your performance on more obscure search terms that align with your customers’ search intent is a great way to increase ROAS for the long term. A10 will reward your success with better rankings on higher-volume search terms and the virtuous cycle can help you conquer your most-coveted listing spots. And the best part? This process of gaining momentum, if done right, will naturally decrease your ad spend over time as Amazon recognizes your value and works with you to keep your products at the top of consumers’ search results.

Amazon SEO Optimization and More

As an Amazon SEO specialist, Pattern knows how to help your brand win better success for long-term profitability on Amazon. With our data-driven tools and brilliant teams of ecommerce experts, we help brands with listing management, content optimization, Amazon ad strategies, and more.

Contact us to learn more about our SEO optimization services.

Sept 20, 2022

4 Ecommerce Marketplace Consultant Must-Haves

Entering the ecommerce landscape is a huge undertaking for any brand—it usually requires a large investment in resources and expertise to really be successful. Any brand can quickly get in over their heads trying to navigate the nuances of SEO, fulfillment and logistics, distribution control, listing optimization, and meeting the numerous other requirements and administrative tasks to show up well on marketplaces. 

Unfortunately, because it’s so easy for third party, gray market, and unauthorized sellers to obtain and sell products online, many brands find themselves pressured to execute an ecommerce plan without the right resources to succeed on marketplaces and their other channels.

So, for brands looking to enter the ecommerce space or improve their current and future performance, it makes sense to partner with an ecommerce consultant.

Pattern’s global presence and proven success with hundreds of brands has allowed us to develop highly effective ecommerce consulting services. We can guide your brand to navigate issues both large and small in marketplaces worldwide. To maximize your ecommerce efforts, you’ll need to understand what an ecommerce consultant does and how to select one who drives the right value for your brand and products. 

What is an Ecommerce Consultant?

An ecommerce consultant is a specialist in the ecommerce space who can give you personalized guidance on how to market your products and grow their presence on digital marketplaces.

An ecommerce consultant should be able to analyze your brand, audience, category, opportunity, and current roadblocks and help you understand how to utilize your resources (or what resources are missing) to be most effective in capturing your opportunities in the ecommerce space.

Not sure how to evaluate a consultant? Here are 4 key attributes to look for as you make your choice.

1. Brand Obsession/Specialization/Passion

At Pattern, we prioritize brand obsession for a reason—we know that a brand-centered mindset makes a crucial difference in the outcomes and results our partners achieve. So in our experience, when you begin your search for an ecommerce consultant, it’s important to look for a partner who is specialized in ecommerce, invested in the product, and passionate about helping brands build and improve their strategies. Typically, this means finding someone that consults exclusively for ecommerce marketplaces, rather than choosing a consultant who offers many different services. 

2. Proven Results

It’s also important to avoid choosing a consulting partner who can’t deliver the right experience for your brand. The best indication of whether your potential consultant can do that is to review their history, data, and results with other brands. Ask if they’ve helped others in your selling category, if they’ve solved specific issues your brand is facing, and why they feel you are a good fit. The key is to leave the conversation feeling confident that you understand your consultants’ capabilities and whether or not they match up with your needs.

3. Wide Range of Marketplace Expertise

It’s best to pick a consultant who knows how to guide a brand onto and through multiple marketplaces worldwide. You’ll want to take a look at your long-term strategy and think about the regions and platforms you’re currently on and where you might want to take your brand in the future. If your consultant is truly great at what they do, they’ll be able to help you perform well enough with your current product roadmap that it’ll be a no-brainer to expand your presence at the right time.

4. Network of Resources

The most effective partnership with an ecommerce consultant will be able to give you both recommendations and point you to solutions for making those changes in your planning, processes, and execution. Your time and money is valuable, so you want to make sure that you’re spending it as efficiently as possible as you follow your consultant’s advice. So, before you commit to an ecommerce consultant, ask about the resources and concrete solutions they typically recommend to the brands they work with.

Achieve Your Ecommerce Goals With Pattern

Finding an ecommerce consultant that checks the boxes can be a difficult task. At Pattern, our entire focus and drive centers around giving brands the tools and resources they need to succeed on domestic and international ecommerce marketplaces. 

With over 100 global ecommerce consultants across 10 global offices, we have the right tools to partner with brands across the world to achieve better ecommerce success. We give specialized advice, then make sure our partners have all the adequate SEO, social media, CRM, Amazon multi-channel fulfillment services, and ecommerce outsourcing services they need.

Interested in ecommerce consulting services? Set up a call here to learn what Pattern can do for your brand on global marketplaces.