In hard times, with shrinking advertising budgets, who can blame retailers for trying to get the most for their money by convincing their suppliers to promote stores by co-branding? When Walmart is involved…pretty much everyone blames the retailer. See, everyone’s favorite retail juggernaut is threatening to take shelf space away from vendors that do not use part of their ad budget to promote Walmart.
You could call it “synergy.” Or you could call it “bullying.” AdAge has the story:
In recent months, the country’s largest retailer has been quietly rolling out a system — the cost-supplement initiative — that marketers and industry consultants say directs marketers to divert money proportionate to their share of sales to Walmart marketing programs. Walmart is looking for a share not just of trade-promotion funds but also consumer-ad dollars. The vehicles Walmart wants funded include co-branded TV and other media ads, in-store TV and banner ads on Walmart.com.
My favorite reader comment on the article reads, in its entirety, “Why does Walmart need to advertise at all? Seriously, what would happen if they stopped?” What, indeed?