Walmart surpassed Amazon in digital advertising revenue growth

Walmart surpassed Amazon in worldwide digital advertising revenue growth during Q2 2024, posting a 26% increase, ahead of Amazon's 20%, according to the company's latest financial reports, based on data collected by eMarketer.

This notable increase is mainly due to the performance of its Walmart Retail Media division, Walmart Connect, which experienced 30% year-over-year growth.

According to projections made in March of this year, Walmart will capture 6.8% of all retail media advertising spend in the U.S. this fiscal year, equivalent to $3.72 billion.

So-called retail media networks are attracting billions in advertising spend. According to eMarketer, global Retail Media ad spending is expected to double from $114.18 billion in 2023 to $233.89 billion in 2027. In addition, Retail Media is projected to account for a larger share of digital ad spending, eclipsing traditional media spending, increasing from 18.9% of that segment in 2023 to 25.7% in 2027.

In this context, advertising bought through retail media networks is deployed across various platforms, including in-store displays, websites, mobile apps, streaming services, smart TVs, and social networks. This arena not only offers advertisers the opportunity to present their offerings to consumers willing to spend but also provides a valuable amount of first-party data. Retailers have a significant amount of data on their customers, from one-time shoppers to loyal shoppers, which is key for advertisers looking to optimize their exposure.

Walmart keeps growing

As reported by CNBC, Walmart CEO Doug McMillon recently highlighted the differentiating advantage retailers possess: “If brands advertise with a digital ad, for example, and a customer makes a transaction a week later in a store, we can connect it for them and let them know that the ad worked.”

Walmart has emerged as a key player in the Retail Media landscape. Its foray into advertising has contributed to the company's growth in recent quarters, and its recent deal to acquire TV maker Vizio underscores its commitment to this expanding business.

Overall, it seems Walmart is going through some ‘good times.’ Not only is their advertising growing, but their physical retail and e-commerce also showed some interesting statistics during 2023: 

• Walmart's Holiday-Quarter Earnings: With quarterly total sales of US$173.4 billion in Q4 2023, Walmart grew by 5.7%.

• Walmart eCommerce Boost: With a 23% increase in eCommerce sales, Walmart hit the US$100 billion mark in online sales in 2023.