Walmart's advertising revenue in 2021 is $2.1 billion! The huge buyer scale helps the development of advertising business!

It is learned that Walmart's advertising revenue in 2021 was US$2.1 billion, mainly driven by its retail media network Walmart Connect. According to the company's earnings report, the number of active advertisers on Walmart Connect in 2021 increased by more than 130% year-on-year, and about half of advertising sales in the fourth quarter came from automated channels, more than double the fourth quarter of 2021.

Walmart.com is the ninth most visited website in the U.S. (after Pornhub), according to Semrush. Amazon is fourth. And nine of the top 10 U.S. retailers, including Target, Kroger, Lowe’s, Walgreens and Albertsons, have built their own media networks in the past few years.

Walmart uses its massive buyer base to attract advertising revenue

• Globally, approximately 230 million customers visit Walmart’s online and offline channels each week;
• Nearly 150 million of these customers are in the United States;
• 90% of American households shop at Walmart every year;
• Walmart plans to expand its InHome grocery delivery service to more than 30 million U.S. households by the end of 2022.

Walmart sells sponsored search inventory and display ads on its website, and last fall it launched a demand-side platform built by The Trade Desk that lets advertisers reach Walmart customers across the internet, further growing its ad business.

Walmart plans to use Walmart+, which was launched in 2020, as a loyalty program to better track individual shoppers' purchasing behavior without using a membership card discount mechanism. Whenever someone uses a debit or credit card to buy something at Walmart - whether online, through Walmart+, or in a Walmart store - Walmart can match the "anonymous ID" mapped to the individual.

Walmart said the move helps Walmart connect buyers' online and offline purchases with their information, which typically includes information such as their email addresses, IP addresses and zip codes. These households can then be aggregated and segmented for targeting. For example, if there is a demand for selling soda business, Walmart can tell advertisers how to attract suburban 18-24 year olds who they believe are interested in high caffeine, sugary drinks. And provide insights such as what these buyers have in their shopping carts and whether these buyers are new buyers or loyal customers, thereby further developing the advertising business with its huge buyer scale.

Editor ✎Estella/

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