The world’s largest retailer has quickly turned Connect into a great offer. The use of technology plays an important role for Walmart and its performance in the advertising field. The retail chain will link its Walmart Fulfillment Centers with advertising, it will also give the merchants the opportunity to transact more frequently during prolonged crisis periods in supply chain.
According to John Furner, president, and CEO of Walmart U.S., “That’s really the key to the growth of advertising:
to have a large seller and supplier base that can reach our customer base.”
For Walmart, advertising sales represent an important segment, so much it is now added as a fixed feature on Walmart’s financial reports. Due to companies providing their purchase database for the purpose of advertising services, several automated processes have been implemented, which executives expect great growth opportunities and hope to position it among the 10 best advertising platforms in the coming years. That’s how technology plays an important role for Walmart.
In 2021, Walmart Connect broke down its advertising finances for the first time in its annual report with a total revenue of $2.1 billion due to expanding its marketing technology stack. The earnings release reflects a net profit of $1.6 billion on sales, with the remainder coming from its collection as a “cost of sales reduction,” in keeping with the nature of various advertising deals.
The retail chain expects Connect to become more efficient as more operations are automated, so they are enacting ambitious offers to optimize their technology infrastructure. It’s clear that many brands are looking into Connect to promote messages closer to where people are looking for a purchase. Walmart e-commerce sales have reached 70% in two years, which how much technology plays an important role in Walmart, and how the pandemic has enshrined online shopping behaviors.