Please ensure Javascript is enabled for purposes of website accessibility

Walmart Acquires Next-Generation Advertising Tech From Thunder Industries

By Eric Volkman - Feb 4, 2021 at 4:54PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The new assets should allow the company to offer more personalized digital ad spots.

Walmart (WMT 1.19%) is attempting to sharpen its competitive edge in advertising with a new asset purchase. Various media are reporting the the giant retailer is acquiring the technology and assets of Paper G, a privately held ad tech company that does business as Thunder Industries.

Neither the price nor the terms of the deal have been disclosed. The arrangement does not include Thunder's customer contracts, which apparently are to be wound down. It does include the bulk of the company's workforce.

A Walmart employee scanning a product.

Image source: Walmart.

Walmart is buying a company that harnesses data to deliver personalized digital advertising to individuals. The company will utilize this technology to offer advertisers the ability to create their own ads to target different customer demographics. Monitoring features will allow those advertisers to gauge the effectiveness of this targeting.

"As we continue to grow our media business we need to find ways that we can easily serve all suppliers -- be it companies who have been Walmart suppliers for years or brand new marketplace suppliers," chief customer officer Janey Whiteside said in a statement to The Wall Street Journal.

Like some of its big retail peers, Walmart has a considerable digital advertising business that leverages the mountains of data it harvests from its shoppers. According to the Journal, while Walmart does not break out the financials for its advertising business, the company has said it doubled revenue from such activity in the past year.

The Thunder deal appears to be a bolt-on acquisition that should bolster that end of the company's operations.

On Thursday, Walmart shares lagged slightly behind the performance of the S&P 500 index, closing 0.9% higher on the day.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wal-Mart Stores, Inc. Stock Quote
Wal-Mart Stores, Inc.
$127.50 (1.19%) $1.50

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.