Big Blue becomes bigger.
Walmart’s advertising activities increased to $ 4.4 billion in its most recent financial year, increasing by 27% from one year to the next, according to the company’s quarterly revenues. In the fourth quarter, Walmart’s global advertising activities increased by 29%, with Walmart Connect increasing 24% in the United States.
Its advertising activity, however, is still only a fraction of the company’s overall income. During its last financial year, Walmart recorded a turnover of $ 681 billion, up more than 5% in annual shift.
So what? Retailers like Walmart and Target make a lot of money Sell ads by transforming their electronic commerce websites and their experiences in stores into advertising networks. These retail media networks should represent approximately a quarter of all American media spending, or 130 billion dollars, by 2028, according to emmonyter.
The retailer continues to extend his advertising imprint. In December, Walmart completed its acquisition of $ 2.3 billion VizioWhat leaders have said they will help fuel your advertising business.
“Vizio will help us serve customers new ways to improve their purchasing trips while creating new opportunities so that advertisers connect with customers and stimulate the discovery of products, allowing brands to make an impact More importantly of their advertising expenses with Walmart, “John David Rainey, EVP and the director of Walmart, on Thursday told investors.
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What stood out from the call:
On weight loss drugs: “We have seen the growth of health and well-being in mid-adolescence, largely due to GLP-1 sales“Said Rainey.
On prices: “Prices are something that we have managed for many years and we will continue to manage this,” said CEO and president of Walmart, Doug McMillon. “We cannot predict what will happen in the future, but we can very well manage it.”
On inflation (and egg prices): “There will always be anomalies, as we see at the moment with eggs following avian flu last fall,” said John Furner, president and chief executive officer of Walmart US. “These things tend to train over time, so we don’t have a big inflation number this year.”
On consumer confidence: “We see a coherent and resilient consumer,” said Furner.
Zoom out: For the first time, Walmart fell Behind Amazon in total income. Its advertising activity is still well behind the own network of media for retail sales of electronic commerce, which, which, which, which, which, which, which generated $ 56 billion in advertising revenue last year.
All eyes are now on the target, which should share its profits on March 4. Its washer advertising network experienced “growth in the adolescence environment” in the third quarter of 2024, but the company has not yet disclosed the size of its advertising activity.