Walmart enters advertising market, faces competition from Amazon, Google, etc.

The online advertising business is extremely lucrative for Facebook, Google, and Amazon. Facebook earned nearly $115 billion in advertising revenue last year alone, and $841.69 trillion in 2020 .

Google's advertising revenue was $209.497 billion last year and $ 146.92 billion in 2020. According to Amazon's fourth-quarter financial report, its advertising revenue in 2021 was $ 31.2 billion, with sales increasing by 32% in the fourth quarter .  

Now, Walmart is looking for ways to get a bigger piece of the advertising pie , not just on its own site but across the entire Internet .

How is Walmart growing its advertising business?

Walmart is posting some new positions at its digital advertising division , Walmart Connect , which the company changed its name from Walmart Media Group to Walmart Connect last year .

Walmart is looking to hire partner managers and search performance managers to help improve seller advertising on its marketplace , according to a KeyBanc report, which also noted that Walmart Connect grew nearly 240% in the third quarter of last year on a two-year basis .

Last year, Walmart also partnered with The Trade Desk (TTD) to facilitate digital media transactions on various media networks and seller platforms , using its understanding of customers to conduct advertising business on the Internet. The cooperation with The Trade Desk means that Walmart can place advertisements on some of its competitors ' websites.

How big is the online advertising market in the United States?

Even before the pandemic , people were increasingly shopping , dating and watching TV online , but the pandemic-induced home life has greatly increased the time people spend on the Internet.

According to a report by Research And Markets , the global digital advertising and marketing market was valued at $350 billion in 2020 , with the U.S. market estimated at $155.3 billion last year. The global advertising market is expected to reach $786.2 billion by 2026 .

At present, the online advertising market is mainly dominated by three technology giants . Last year, Facebook's advertising revenue was 114.934 billion US dollars, Google was 209.497 billion US dollars, and Amazon was 31 billion US dollars.

Did Meta's challenge lead to Walmart's opening?

Last year, Walmart said it was on track to become one of the top 10 advertising platforms in the world .

Facebook has been swayed recently by changes Apple made to its policies regarding tracking of customers on its iOS devices . If an iPhone user declines to be tracked when they open an app, app developers will no longer be able to access the device's identifier for advertisers.

Because Facebook relies heavily on targeted advertising, Apple's changes to its privacy policy could cost it $10 billion this year alone , and that number is likely to increase .

Also , Mark Zuckerberg bet the company's future on the Metaverse , causing its stock to drop by $30 billion earlier this month.

Walmart may have a chance to grab some of Facebook's market share. In addition , the move by US lawmakers to break up large technology companies could also greatly change the current online advertising market .

Walmart

Amazon

advertise