https://www.cnbc.com/2020/09/21/why-tiktok-deal-could-mean-big-growth-for-walmarts-ads-business.html
The article notes that Walmart Media Group "boasts about its "massive scale" and "massive reach" to advertisers" with 1.5 to 2 million customers shopping its (online and/or retail) store every day. However, Walmart hopes that's about to change as TikTok has an estimated audience of 50 million users every day. Assuming the U.S. and China agree on a deal, Walmart's ad business would profit from this new customer base.
According to Kantar research, Walmart's average shopper is 46 years old, while TikTok's average user is between 18 and 24 years old. Walmart is hoping to advertise to/make customers out of these users since these users are responsible for creating and promoting trends. Marc Anthony, a hair tools company, noted a 60% increase in sales at big box stores through widespread exposure from viral TikToks. Assuming Walmart gets a stake in the company, it will be able to react appropriately (perhaps even proactively) to these trends. With this purchase, Walmart has the opportunity to compete against Facebook, Instagram, etc. in the up-and-coming social commerce business.
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