Wal-Mart begins sponsorship with Oscars; famous directors create short films to air during ceremony

In this March 2, 2014 file photo, an Oscar statue is displayed at the Oscars at the Dolby Theatre in Los Angeles.
In this March 2, 2014 file photo, an Oscar statue is displayed at the Oscars at the Dolby Theatre in Los Angeles.

Wal-Mart Stores Inc. is taking its advertising campaign to Hollywood.

The Bentonville-based retailer said Thursday it is beginning a multiyear sponsorship agreement with the Academy Awards on Feb. 26. To mark the occasion, Wal-Mart has challenged a few well-known directors to create three, 60-second films that will air during the Oscars.

Antoine Fuqua, Marc Forster and the directing team of Seth Rogan and Evan Goldberg accepted Wal-Mart's challenge to create ads centered around the theme of "behind every receipt, there's a story." The directors were given parameters to build stories based on a sales receipt containing six items selected by the company: a scooter, video baby monitor, bananas, paper towels, batteries and wrapping paper.

While the commercials must remain true to Wal-Mart's family-friendly foundation, the directors were otherwise given creative liberty to create the short films. Fuqua told The Hollywood Reporter there were "no restrictions" on the type of story he could produce for the 60-second spot.

"I've been a storyteller for as long as I can remember," Fuqua, who directed Training Day, said in a statement provided by Wal-Mart. "This was a wonderful challenge from Wal-Mart that allowed me to do just that: tell an extraordinary story shaped around six ordinary objects."

Wal-Mart said in its announcement the campaign is part of its plan to explore new ideas in advertising. Tony Rogers, chief marketing officer for Wal-Mart U.S., said in a statement being part of the Academy Awards is a "great way to connect with our customers in a fresh, new way."

"As the world's largest brand, and a company that sells just about everything, we plan to be more involved, more engrained in the cultural moments that our customers care about, starting with the Oscars," Rogers said in a statement.

It's a good move, according to Martin Thoma, a principal at Little-Rock based brand leadership firm Thoma Thoma and author of Branding Like the Big Boys. He believes Wal-Mart's efforts to involve Hollywood directors and create a competition, of sorts bends the stereotypes of an ad campaign.

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Thoma added that being able to do so during events such as the Oscars or the Super Bowl can have a big impact on companies.

"Every brand has an imperative to stay culturally relevant, especially a huge brand like Wal-Mart," Thoma said. "They've got to be in the conversation and they've got to be relevant.

"Clearly, what they're doing here is really driving a stake into the sand and saying, 'We are part of the culture. We're involved. We're engaged and we want to tell stories that are relevant to people in an engaging fashion.'"

There is a price to pay to spread Wal-Mart's message to viewers with three 60-second films.

According to February 2016 data from Kantar Media, the average price of a 30-second spot during the 2015 Academy Awards was $1.8 million and the total was expected to reach $1.9 to $2.0 million last year. The cost is expected to be between $1.9 and $2.2 million this year, according to New York-based firm MediaRadar Inc.

Thoma said the value of spending on advertisements is not just about driving sales. He said events such as the Oscars are high-visibility, high-impact opportunities to make an impression on a lot of people.

"Wal-Mart doesn't expect someone to turn around and go buy paper towels as a result of seeing these films," Thoma said. "They want to create an impression about who the company is and what it stands for. That's the impact."

Wal-Mart spokesman Meggan Kring confirmed Wal-Mart is the exclusive retail sponsor of this year's Academy Awards. JC Penney's long-time stint as exclusive retail sponsor ended in 2015. Kohl's was the sponsor last year.

As part of the sponsorship, Wal-Mart also announced its will make a $250,000 donation to The Academy Grants Program for FilmCraft in the name of each participating director.

Rogers said the Academy Awards campaign is "celebrating creativity and storytelling" and noted the company thinks of its business "beyond simple transactions."

"A Wal-Mart receipt tells a story as diverse as the customers who shop us," Rogers said. "This unexpected way of telling our brand story is a perfect fit for a night where compelling storytelling is celebrated."

Business on 01/27/2017

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