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Walmart’s ad business grew 27% year over year in 2024, according to the company’s recent earnings report, netting the retail giant $4.4 billion in global ad revenue for the year. That growth has come as Walmart has continued to evolve its ad offerings. This week, for example, the company announced a new Application Programming Interface (API) for Walmart Connect that allows ad tech platforms to create and manage tools for display campaigns — a move that buyers see as Walmart setting the stage to transition display campaigns from managed service to self-service.
As Walmart’s retail media network matures, buyers see it as the leader of the pack among the bevy of retail media networks — aside from Amazon of course. Walmart is checking a lot of the boxes when it comes to what buyers want from retail media networks now, including adding more capabilities and tools, more measurement tracking and off-site ad units. Whenever Walmart adds streaming and CTV capabilities — something buyers expect it will do given its acquisition of smart TV maker Vizio — that will only help the retailer continue its current growth trajectory, according to four ad buyers Digiday spoke with for this piece.
“Walmart has been the one to watch,” said Amie Owen, chief commerce officer at IPG Mediabrands.
Walmart’s pitch to buyers tends to focus on touting partnerships, the evolution of its products — like its new API — and its rich data capabilities. Its CPMs are competitive and its scale makes it an easy sell to advertisers. The expectation that Walmart will continue to transition from managed service, which is typically where retail media networks start, to self-service is a sign that the retail media network is continuing to mature. There’s a sense from buyers that, given Walmart’s scale, it was “only a matter of time that they really started to grow their ad business,” said one buyer who requested anonymity. “They have the audience size that buyers are looking for and with a marketplace, ad buying is the way to stand out in a crowded field.”
That being said, if Walmart wants to hold onto its strong position among the other major retail players and the niche networks and maybe even score some of Amazon’s ad dollars, buyers believe Walmart needs to focus on streaming and CTV. The expectation is that the company will eventually, but doing so sooner rather than later will likely help keep its growth going strong.
“If I was Walmart and I wanted to compete with Amazon, I would be pushing the Vizio acquisition so much more,” said another buyer who requested anonymity. “[Imagine if] everyone who signs up for Walmart+ got a free Vizio TV? If Walmart did that they would compete with Amazon because then you’re getting like every household in America to sign up and then you’re getting addressable TV tied to Walmart data.”
When it comes to retail media players, advertisers typically see Walmart and Amazon in “different pools,” a third ad buyer who requested anonymity said, adding that “in earlier days of retail media it was more of ‘this or that’” competition. Buyers believe that advertisers are likely to spend with both Walmart’s and Amazon’s platforms as they have different relationships with the two retailers, with Walmart leaning on its brick-and-mortar presence, shelf space, and supplier and vendor relationships to scale its retail media business.
With that said, as Amazon beefs up its streaming capabilities and offerings, and goes after brand dollars, buyers believe it would make sense for Walmart to do the same, as there’s still room for client spending on Walmart to grow, according to buyers. The ad buyers Digiday spoke with for this story declined to share specific figures on how much clients are increasing their ad spending on Walmart, as it varies significantly from client to client, making it hard to share an exact figure. But they did say that, overall, clients continue to increase spending on the platform.
Aside from streaming and CTV, buyers want to see more connectivity between Walmart’s actual retail business and its retail media business, with different teams talking to each other more clearly. That’s not just a request that pertains to Walmart, though, noted buyers. “Agencies usually act as the glue but we want retailers to also understand what’s happening on their side and all those pieces,” Owen said, adding that buyers want to see a “more cohesive ecosystem” from retailers.
“They’re all like middle schoolers trying to find their way,” Owen said of retail media networks today. “It’s going to be interesting to find out what they’re like in high school.”
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