Now that Walmart is number two in the e-commerce space, it’s platform will surely find new suppliers and sellers. This creates an opportunity to charge those selling on their platform for guaranteed result placement.
The changes at Walmart Media Group, which will be renamed Walmart Connect, signal the company’s growing ambitions to diversify revenue and become a top 10 ad company in the next few years, said Janey Whiteside, chief customer officer at Walmart.
“We built a pretty substantial media business and are investing in new capabilities and products that allow us to pivot from a traditional media business to a closed-loop omnichannel media company,” Ms. Whiteside said. The group has doubled its advertisers and revenue in the past year, she added.The Wall Street Journal
Walmart has been leaving potentially billions of dollars on the tables.
By way of comparison, in the third quarter, Amazon’s “Other” business segment, which “primarily includes sales of advertising services,” accounted for $5.4 billion in revenue, nearly 6% of the company’s total. It’s consistently growing more than 40% on an annualized basis.
Though Walmart’s ads business is smaller than its tech competitors, the segment has gotten a supercharge during the pandemic with so many consumers buying groceries and other items online.CNBC