Walmart's ad business expanded from an unmonetized operation in 2018 into a multi-billion-dollar unit by 2024, generating $4.4 billion and growing 27% year-over-year. The unit grows slightly faster than Amazon's much larger ad business and supplies nearly a third of Walmart's profit, helping absorb costs such as tariffs. The retail media market now includes more than 200 networks with mixed performance. Macy's Media Network generated $34 million in a recent quarter, flat year-over-year. Industry forecasts show commerce ad spend growth slowing in 2025 compared to 2024.
"Back in 2018, Walmart CEO Doug McMillon felt that Walmart's ad business was " tiny." "Our data has never been monetized," McMillon told analysts at the time. "[The ad business] could be bigger." Fast forward to 2025, and Walmart's advertising business has now become a multi-billion-dollar behemoth. In 2024, Walmart's advertising business brought in $4.4 billion in advertising revenue, up 27% year-over-year. While it still pales in comparison to Amazon's $56 billion advertising business, Walmart's advertising business is growing at a slightly faster clip."
"And, perhaps most importantly, it's become a significant profit driver for Walmart. Last year, Walmart CFO John David Rainey said that almost a third of Walmart's profit comes from selling ads. And McMillion has said that having an advertising business has been helpful as Walmart - like every retailer - is trying to figure out how much of the costs it can absorb from tariffs before passing on price increases to consumers."
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