Walmart Local Ad Fight Takes Off

The retailer is doubling the airtime of local TV commercials that feature ad price comparisons, a strategy that is resonating among consumers.

April 12, 2013

NEW YORK – Walmart TV ads have come home, Advertising Age reports. Whereas in the late 1990s, it flexed its ad muscle with national spots that had its regional competitors trembling, today, it’s strategy has become localized, with a growing portion of its TV ad budget allocated to price-comparison ads targeting local retailers.

The local ads have launched in 60 markets this year, up from 50 last year, and will lead to 1,500 TV ads during 2013. That’s double the number it ran in 2012, which were up 79% from the year prior.

The effort combines the real-time immediacy of social media with TV, and it is serving as a hearty complement to its robust national ad presence.

"We're still running a number of national ads and still feel that's playing an important role," a Walmart representative said. "But we also know grocery is a local business, and it's important to have that local voice out there."

The focus of the local TV ads is comparing the cash-register totals from consumers who shopped at a competitor versus what they would have paid at Walmart. And according to Advertising Benchmark Index consumer panels, the ads are resonating among consumers, registering an average 130 on the index — or 30 points above average for industry ads.

The price comparisons have sparked complaints to state attorneys general, though none that have prompted any formal investigations, another Walmart spokesperson said.

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