Walmart is the biggest and (quite literally) bluest retailer in the US, minting hundreds of billions in retail sales and making billions in digital advertising revenue.
In the eyes of advertisers, though, it still doesn’t hold a candle to Amazon.
Even though Walmart has made strides growing its retail media platform, advertisers are still warming up to Walmart’s capabilities this holiday season, media buyers told Marketing Brew.
“Walmart has not been the place where brands are focusing their e-com dollars,” Ryan Dietrich, SVP of e-commerce, retail media, and technology at the agency Monks, told Marketing Brew. “Historically, we always told brands to treat Walmart as kind of like Amazon Canada, which means, as a rule of thumb, 10% of your Amazon US sales.”
Though media buyers say the company’s retail media network has considerably more upside in recent years, Dietrich said Walmart still has ways to go before it makes a dent in Amazon’s retail media market share.
How it’s stacking up: In many ways, comparing the two retailers’ retail media platforms is a bit like comparing apples to a diamond-studded orange.
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Amazon’s advertising business posted revenue of $14.3 billion last quarter. Meanwhile, Walmart’s retail media business brought in around $3.4 billion for the 2024 fiscal year.
Slowly but steadily, though, Walmart is expanding its retail media footprint. Its US ad business, Walmart Connect, grew by roughly 30% in Q2 and 26% in Q3, according to company earnings reports.
“We’re getting better at converting someone who may just be eyeballs looking at our website to actually completing a checkout and putting something in their basket and having that delivered to their house,” Walmart CFO John David Rainey told investors in November. “We’re pleased with our progress, but it also indicates we still have a long way to go.”
Continue reading here.—RB
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