In December 2024, Walmart made a $2.3 billion purchase that left many scratching their heads. The iconic retailer snagged consumer electronics company Vizio, best known for its smart TVs and soundbars, for $11.50 a share.
At the time, Walmart said it had plans to turn Vizio into one of its private label brands. The acquisition would allow the retailer to offer cutting-edge electronics to consumers at a lower cost.
“Vizio offers great products at great prices that customers love,” Walmart Chief Growth Officer Seth Dallaire said in a statement. “They’ve always put customers at the center of their business – and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out.”
When taken at surface level, the acquisition seemed a little strange — certainly there were less expensive ways for Walmart to launch its own line of consumer electronics?
However, with Walmart and Vizio’s latest announcement, it’s become increasingly evident that the retailer wasn’t just after a budget line of smart TVs but access to a one-of-a-kind omnichannel shopping experience that could shape the way retailers operate.
Walmart and Vizio launch a content-to-commerce program
Earlier this week, in a NewFronts presentation, Walmart and Vizio announced new integrations, branded content innovations, and connected TV (CTV) advertising campaigns.
What this means in practice is that Vizio TV owners will now use their Walmart.com login credentials to access their Vizio TV accounts (Vizio TV accounts have been a requirement for device owners pre-Walmart acquisition).
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Using the same account for both will make it easier for Walmart to track what products viewers are exposed to and what ads translate into purchases. It will also make it possible for viewers to shop Walmart directly through their TVs, thanks to shoppable ads.
In other words, the announcement means Walmart will now be able to associate past in-store and online purchases with individual Vizio owners, use streaming ads to introduce those viewers to new and existing products they might be interested in, and then let them purchase those products directly, without walking into a brick-and-mortar location or accessing a website.
“By unifying account access, we’re creating a seamless experience across screens while laying the groundwork for deeper integration between retail and entertainment,” Walmart Senior Vice President of Business Integration and Planning Courtney Naudo said in a statement.
Walmart owns Vizio.
The L’Oreal test case
During the NewFronts panel, Walmart and Vizio also announced that they had partnered with cosmetics brand L’Oreal on a first-of-its-kind product placement integration plan.
L’Oreal products will soon appear in VizioOS content, like the home screen or its ad-supported WatchFree+ channel, and Walmart will create product pages and other touchpoints allowing users to make purchases directly from their couches.
“We’re thinking about the home screen really as the front door to the living room,” L’Oréal’s Senior Vice President and US Head of Media Nora Wolfe said during a NewFronts panel, according to Marketing Dive.
“It gives us the opportunity to get in front of all 92 million Vizio homes before they pick their content or get behind a paywall where we can’t reach them,” she continued. “And so these are really unmissable moments that we’re strategically aligning with product launches or other really critical messages that we need to get out.”
If the partnership is successful, Vizio TV users could soon be able to make similar purchases from a wide range of sector-leading brands and other major retailers, like Target and Amazon could follow suit.
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