Walmart closed out its fiscal year with a strong fourth quarter, reporting a 4.1% revenue increase to $180.6 billion, while its full-year revenue surged 5.1% to $681 billion. A major driver behind this growth is the retailer’s booming advertising business, which expanded 27% in 2024 to $4.4 billion, continuing its rapid rise as a key revenue stream.
Advertising and Membership Bolster Profits
Walmart’s global ad business grew 29% in Q4, with its U.S. segment, Walmart Connect, up 24%. CFO John David Rainey emphasized the impact of advertising and membership services on overall profitability.
“If you just take advertising and membership, just those two categories, that was a little more than a quarter of the overall operating income for us in the quarter,” Rainey said on the earnings call.
Despite the impressive growth, Walmart’s ad revenue still trails far behind Amazon, which crossed the $56 billion mark last year, boosted by its expansion into Prime Video advertising. However, Walmart is actively positioning itself to close the gap.
Vizio Acquisition Expands Retail Media Potential
A key move in Walmart’s advertising strategy was its December acquisition of Vizio, which is expected to significantly enhance the retailer’s ability to integrate retail media with connected TV advertising. By leveraging Vizio’s SmartCast Operating System, Walmart aims to provide brands with more impactful ad placements, improving product discovery and optimizing ad spend.
“I’m just really pleased with the way it works for the Walmart Connect business to have more ways to distribute advertising for sellers and suppliers,” said Walmart U.S. President and CEO John Furner.
The retailer expects this integration to further solidify its position in retail media, allowing it to compete more effectively in the evolving ad landscape.
E-Commerce Growth and Marketing Investments
Beyond advertising, Walmart’s continued expansion into e-commerce is reshaping its cost structure. Digital sales now account for 18% of its total business, a shift that is impacting the retailer’s overall channel mix and influencing advertising strategies.
Recognizing this shift, Walmart has increased its marketing investments, a move that was particularly evident in Q4. “Marketing is an area that stands out that we invested a little bit more heavily into,” Rainey noted.
In January, Walmart introduced a new visual identity designed to reflect its growing digital presence and position itself as a “modern, culturally dynamic brand.” As the company continues to embrace digital transformation, its focus on advertising, e-commerce, and branding signals a long-term commitment to growth in an increasingly competitive retail environment.
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