A good position in the digital market
In 2023, Walmart generated 3.4 billion dollars with its retail media business. This figure contains both ads on its e-commerce properties and any of the forms of promotion brands can use to advertise their products at Walmart’s physical stores. In digital terms, Walmart Connect is the second-largest digital retail media network in the U.S. However, its revenues pale in comparison to the ranking's leader. Amazon makes roughly ten times more selling e-commerce media.Investments in the brick-and-mortar retail media
But it is not e-commerce operations that make Walmart the largest company worldwide. It is the thousands of physical stores across North and South America, as well as Africa and China. While the company’s ad revenue accounted for only 0.5 percent of its sales in 2023, it holds a great potential to develop into a more profitable revenue stream. During a 2023 investment community meeting, Walmart announced plans to strengthen its ad business. Some 170 thousand digital screens would be installed in its U.S. locations and various new ad formats, such as in-store radio spots or self-check-out screens ads, would be introduced. Shortly afterward, marketers recognized Walmart as the most promising physical retail media network in the U.S.Innovations to get ahead of the curve
The retailer is also implementing more innovative solutions in its ad business. In February 2024, the company announced the acquisition of connected TV (CTV) producer Vizio, whose devices are owned by approximately one in 10 adult Americans. This will considerably grow the audience of Walmart’s digital ads and add streaming capabilities, which are very attractive for advertisers.In Mexico, Walmart Supercenters and Sam’s Club stores have been equipped with a unified digital signage software and artificial intelligence-based camera analytics solution. The two together allow Walmart to collect customer engagement data and offer advertisers valuable insights into their ad audiences. These can then be used to target ads both in physical stores and on online platforms.
