Back-to-school is in full swing this month and major retailers are investing heavily in digital ads to reach families with kids. In fact, retailers in the United States have continued to increase their ad spend into H2 2022. Pathmatics by Sensor Tower data reveals that between July 17 and August 15 Target had approximately 177 creatives with the keywords "school" or "back to school", followed by Walmart and Amazon, with 105 and 65 creatives, respectively.
Amazon has spent approximately $174 million on digital advertising over the past month. Amazon’s product offerings are vast, and its digital ads typically run the gamut from deals on fashion and home goods, to services like Prime Gaming and Kindle Unlimited. Over the last 30 days, Amazon has also been promoting deals on school supplies like backpacks, pencils, crayons, and kids’ clothing alongside its usual offerings.
With inflation driving the price of consumer goods to record highs, Amazon's back-to-school ads give parents permission to spend less on supplies without feeling guilty. Amazon utilized the full range of devices including OTT, video, display, and social media to promote its back-to-school deals. Overall, Facebook (37 percent) and Instagram (31 percent) were Amazon’s top platforms to advertise on.
While Walmart only spent roughly $40.5 million on digital ads, it has still invested millions in establishing itself as a top destination for back to school shopping.
Five of Walmart’s top ten creatives in the last month referenced back-to-school, from shopping for supplies to stocking your dorm room, while the remaining 50 percent of ads were for groceries and Walmart+ grocery delivery. Like Amazon, its ads revolved around saving money with the slogan, “When you shop at Walmart, you get it” — suggesting that savvy parents shop at Walmart.
Like Amazon, Facebook (40 percent) was Walmart’s top platform to advertise on. However, Walmart also devoted around 24 percent of its budget to desktop video. Instagram (21 percent) was also a top device for Walmart to advertise on.
Like Amazon and Walmart, Target’s top creatives in the last 30 days touted low prices and savings on school supplies. However, Target also highlighted competitive differentiators like Drive Up and School List Assist, which allows parents to search for their kid’s school supply list and add everything to their cart with just one click.
Other creatives showcased school snacks and lunch items available in Target’s grocery section. This is something Walmart's creatives hadn't outlined, in spite of half of its ads being grocery-related, which could indicate a missed opportunity.
While Amazon and Walmart prioritized ads on social media, Target spent the largest share of its $24.4 million digital advertising budget on OTT ads (24 percent). All ten of its top creatives in the last 30 days were video ads. Pathmatics Explorer also reveals two large spikes in desktop display on July 21 and July 28, which coincided with the start of Target’s Teacher Prep event as well as its tax-free weekends.
With many parts of the country still gearing up for the start of school, Amazon and Walmart will likely continue to devote significant budget to promoting back-to-school deals while prioritizing social media platforms like Facebook and Instagram. Meanwhile, Target is leaning into OTT to reach busy moms and dads with the promise of simple and painless back-to-school shopping. For more insights on how top advertisers are spending, download our State of Retail Advertising 2022 report.