The Shoppe - Major Media Mergers, YouTube Ad Types & More

November 25, 2020

Welcome back to The Shoppe! This week we are covering the launch of HomeGoods.com, new YouTube ad types, major media mergers and more. Be sure to tune in every week for the latest marketing news. 

With the continued shift in consumer preferences toward online shopping due to COVID-19, we have seen many retailers change their strategies for meeting the needs of their customers. More consumers are expected to use socially distant pick-up and delivery services than ever before. In an effort to maximize their preparedness for the holiday season, Walmart has announced that it has nearly doubled its number of personal shoppers from last year. Like many grocery retailers have had to do to combat the rush of digital shopping, Walmart has hired over 500,000 new associates since March. The company now employs over 157,000 personal shopping associates, who they deem crucial to providing the necessary contactless pick-up and delivery services that have been expanding since the start of the pandemic. While the future of shopping in-person is uncertain, accommodating for online ordering, curbside pick-up and customer safety appears to be at the forefront of every retailer's concerns.

In response to the increased consumption of audio centric content on the platform, YouTube has launched a new type of audio based ad unit, to help advertisers tailor their media to all of the ways users are engaging with YouTube. The new ads increase the potential to reach music and podcast listeners, and will allow marketers to deliver a voiceover message over a still image on the user’s screen. YouTube audio ads are currently in beta but are available in auction on Google Ads. The platform has also announced it will start running ads on channels that are not a part of its YouTube Partner Program. In a new addition to their terms of service, YouTube now requires users not currently enrolled in YPP, to consent to the platform running ads against their videos without payment. Creators will not receive a share of revenue, and should they opt out of running ads on their videos, the platform may run them anyway. We can expect to see increases in available ad space as well as more ways to reach relevant audiences.

Despite a history of resisting the push to move its operations online, the TJX Companies have announced the launch of an e-commerce platform for its HomeGoods chain. Expected in the second half of 2021, the platform aims to satisfy current customers and attract new ones, while helping to increase revenues. With over 400 brick-and-mortar stores still closed, TJX has been forced to adapt to the persistent trend of online shopping. While they, like many off-price chains, have attempted to avoid e-commerce due to channel incompatibility with their style of merchandising, TJX has seen an overall decline in sales for months. In an effort to get ahead of the holiday season and the possibility of reduced store traffic or mass closures, they hope the launch of HomeGoods.com to help them improve their quarter four performance. 

Under a deal between BuzzFeed and Verizon Media, BuzzFeed and HuffPost will be merging in hopes to work together through a financially turbulent year. Giving Verizon Media a minority stake in BuzzFeed, the deal allows the companies to partner on monetization opportunities, content syndication across each other’s platforms and ad products. The merged company will be run by BuzzFeed’s co-founder and CEO, Jonah Peretti. Hoping to come out of a year of layoffs and budget cuts with a profit, the companies will be focusing primarily on advertising opportunities and maximizing readership as the digital media industry grows more and more competitive


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