[eMarketer] Walmart’s retail media business records soaring revenues and more advertisers

Walmart highlighted huge gains in its advertising business during its recent earnings call for the quarter ending on July 31, 2021.

eMarketer's latest forecast puts Walmart’s US digital advertising revenues on pace for $1.55 billion in 2021, up 53.5% for the year and representing 6.5% of US ecommerce channel ad spending, a close proxy for the digital retail media market.

Walmart’s ad business was up 95% during the quarter versus last year, while the number of active advertisers was up more than 170%.
On the other hand, Walmart’s ecommerce business—which now ranks No. 2 to Amazon with a US market share of 7.2% this year—saw growth slow to 6% year over year (YoY) after being on a tear over the past four quarters.

In the retail media sector, ecommerce and advertising growth rates are typically correlated, since brands spend against growing consumer demand. Walmart’s diverging trend this quarter points to a long runway for Walmart Connect, with advertiser demand still catching up to the recent surge in spending on Walmart.com.

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