Demand for Retail Media Pushes Global Walmart Ad Sales Up by 24%

Walmart’s AdTech platform, WalmartConnect, has registered significant growth in quarter one of the 2024-2025  fiscal year. According to the earnings statement released by the e-commerce giant, Walmart ad sales grew by 24% globally. This includes a 26% growth for the company’s US-based WalmartConnect. 

In the same period, active advertiser accounts on Walmart Connect grew by 19%. This is according to company executives who discussed the financial results. To a large extent, Walmart ad sales growth was driven by a 50% increase in emerging brands, small businesses, and companies that sell through the Walmart online marketplace. 

“Our team delivered a great quarter. Around the world our goal is simple – we’re focused on saving our customers both money and time. It’s inspiring to see how our associates are simultaneously executing the fundamentals and innovating to make shopping with us more enjoyable and convenient. We’re people-led and tech-powered, and that combination is propelling our business,” Walmart President and CEO, Doug McMillon said. 

Connecting Brands to Customers 

Walmart Connect primarily links brands with Walmart customers. The ad media business provides unparalleled opportunities for brands to reach customers irrespective of their location, or when they shop. 

In recent months, Walmart Connect has been targeting smaller sellers to purchase more ads. This strategy has contributed to its broader goal of setting up a one-stop ecosystem. The ecosystem allows sellers to leverage first-party data to customize ad campaigns for higher sales. 

Walmart Connect holds that in the current environment, omnichannel shopping remains critical for advertisers. Walmart’s ad sales platform provides more ad places beyond the Walmart website, including in-store demo spaces, media partnerships with platforms like TikTok and Roku, and self-service capabilities on TV wall ads.

Future Plans

Growth in the ad segment has been driven by an increase in retail media and digital marketing spending among consumer goods brands. In the coming year, the multichannel seller plans to grow Walmart ad sales by targeting businesses and brands that don’t sell through its platform like finance and automotive marketers. 

Walmart Connect is preparing to take on AdTech giants like Amazon through strategic acquisition. Recently, the company acquired smart TV, Vizio for $2.3 billion. This deal brings 500+ direct brand connections and valuable viewership datasets to the AdTech platform.