Walmart ad revenue was $2.1 billion in 2021 as it builds ad network

Industry growth Andrew Lipsman, principal analyst at eMarketer Insider Intelligence, said that Walmart is in…

Industry growth

Andrew Lipsman, principal analyst at eMarketer Insider Intelligence, said that Walmart is in a strong position to compete with Amazon in advertising, because it has some strengths that the online retailer can’t match. Walmart has 10,500 stores, which generate shopping data in the real world. Walmart can “use it to target ads on-site, and to target ads, through The Trade Desk, across the web,” Lipsman said.

Lipsman also said that connected TV is a “huge opportunity in retail media” in 2022. “The Trade Desk is giving access to that inventory,” Lipsman said.

E-commerce and retail media networks are becoming an important spoke of the online advertising wheel. Walmart called the advertising a “flywheel,” with an increase of 136% in the number of brands using its ad tools to buy media. Meanwhile, Target, Best Buy, Kroger, CVS, Lowe’s, Albertsons and Walgreens are among the traditional retailer building media networks in recent years, too.

There also are startup e-commerce and delivery players like Instacart coming into digital advertising.

Walmart’s total fourth-quarter revenue, including sales in stores and online during the important holiday shopping period, rose 0.5% to $152.9 billion. Fourth-quarter U.S. e-commerce sales rose 1%.

Profit topped analysts’ expectations. The company, like others, continued to contend with issues including inflation, higher gas prices and supply chain troubles.