Walmart's advertising revenue surges 130% to $2.1 billion

According to the latest news from Walmart , its advertising business   Connect's revenue surged 130% in the past year to $2.1 billion, and it is expected to reach $4 billion in revenue by 2025.

Walmart   Connect was launched in late January 2021 and mainly provides marketing services to small and medium-sized businesses and sells digital advertising to consumer product companies and other advertisers.

Walmart's profit margins are under pressure from inflation, labor and supply chain, as well as long-term investments in home delivery, new store setups, etc. Walmart is increasing high-margin businesses, such as the third-party seller market, and especially advertising, to balance these investment pressures.

“ We expect Walmart   Connect will continue to scale in the coming years and plans to become a top 10 advertising business in the medium term . And the strong pipeline of new advertisers and future growth opportunities will continue to drive strong growth for the advertising business. " Brett, Walmart CFO   Biggs said.

Currently, third-party sellers on Walmart have reshaped Walmart's product categories and advertising needs. There may be tens of thousands or even hundreds of thousands of SKUs in Walmart supermarkets . The number of SKUs provided by third-party sellers online can reach 170 million. More third-party sellers mean more advertiser demand. Therefore, Walmart can significantly expand the scale of advertising at the lowest possible cost.

Walmart also revealed that its overall revenue in the fourth quarter exceeded market expectations, exceeding $150 billion for the first time . Consumers mainly buy groceries, clothing and health care services at Walmart.

Before the pandemic, more and more people were already living online, using the internet to shop, date and watch TV . After the pandemic, people spent more time at home , which also increased the time they spent online.

According to a report by Research And Markets last year, the global digital advertising and marketing market was estimated at $350 billion in 2020, and the U.S. market was estimated at $155.3 billion last year. Overall, the market is expected to reach $786.2 billion by 2026, a growth rate of 13.9%.

According to the above data and reports, it can be predicted that the digital advertising and marketing market will continue to flourish in the future and become one of the main ways for businesses to promote and increase their visibility. In addition, consumers nowadays are more willing to choose third-party sellers for shopping. Therefore, Walmart   The expansion of Connect will be of great help to the revenue growth of both Walmart itself and its sellers.

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