Walmart Aims to Compete with Major Digital Ad Platforms with Expanded Advertising Ambitions

Walmart has outlined its ambition to expand beyond retail media and build a full-scale ad platform that can compete for budgets across connected TV, social media, and shopping apps. The company's advertising arm, Walmart Connect, is growing quickly and remains highly profitable, with margins above 70% compared to the roughly 5% margin in core retail.

Walmart Connect's shift from a retail media publisher model to a broader advertising platform has been underway for three to four years. Ryan Mayward, senior vice president and general manager of Walmart Connect U.S., said the company is aiming to resemble major digital ad platforms that combine scale, ease of use, and clear measurement.

Mayward argued that only two retailers fully match the traits of the biggest ad platforms: Walmart and Amazon. Both can reach nearly every customer in their home market, invest heavily in customer attention, offer simple ways for advertisers to buy ads, and show clear return on investment.