Walmart's advertising business is rattling agencies

Lauren Johnson

Hi! Welcome to the Insider Advertising daily for October 30. I'm Lauren Johnson, a senior advertising reporter at Business Insider. Subscribe here to get this newsletter in your inbox every weekday. Send me feedback or tips at LJohnson@businessinsider.com.

Today's news: Walmart rattles agencies, WPP hires McKinsey for five-year plan, and CEOs field investor questions about influencers.

Walmart is ramping up its advertising business by partnering with a handful of adtech firms that help marketers buy and manage ads.
I reported that some small e-commerce agencies say that Walmart is pushing advertisers to work directly with the adtech firms, cutting out ad agencies.
The agencies also said Walmart has limitations that could lead clients to move ad dollars from Walmart to Amazon.

Ad holding company giant WPP created its first five-year plan, said people with direct knowledge of the matter, reports Patrick Coffee.
Former WPP executives said it shows how the company wants to move from cost-cutting to growth as its traditional advertising business struggles.
The five-year plan signals a departure from the past, when WPP ran its business on a quarterly basis and sometimes discussed long-term plans that weren't formalized, said a former WPP financial executive.

Dan Whateley reviewed hundreds of company transcripts to see how CEOs talk about working with influencers.
Influencer marketing was once viewed as experimental marketing, but CEOs now often field questions about them from investors.
Abercrombie & Fitch, Vera Bradley, American Eagle Outfitters and ad holding WPP have all specifically called out 16-year-old TikTok star Charli D'Amelio to investors this year.