Ads hit the aisle as Walmart and other retailers shop for a new income stream
Where we’re going, we don’t need ad blockers… Coming soon to a Walmart near you: ads. The largest US retailer is incorporating third-party ads in its self-checkout lanes, TV aisles, store intercoms, and at free-sample stations. For advertisers, it's a way to reach Walmart’s 139M weekly US customers. For shoppers, it’s a commercial that can’t be skipped.
90% of Americans live within 10 miles of one of Walmart’s ~4.7K US stores, and the chain has ~170K screens ripe for ads. That lets it deliver “Super Bowl-sized audiences” to advertisers every week.
Room in the cart: Last fiscal year, Walmart’s global ad biz grew 30% to $2.7B. But that’s still less than 1% of the retail goliath’s total annual revenue.
Ads to cart… Walmart isn’t the only retailer reminding customers to buy stuff while they’re buying stuff. Grocery king Kroger sells ad space on digital smart screens in its cooler aisles and plays audio ads, while Target’s testing demos. “Retail media” (retailers selling ad spots/data) is becoming a big side hustle, on track to hit $45B this year (up 20% from last year). But retailers need to tread carefully because ad overload could alienate shoppers.
Advertisers are on the hunt for a guarantee… Giants like Meta and Google can serve up ads based on browsing preferences, but those have become easy to scroll past. Meanwhile, retailers like Walmart offer advertisers a trove of shopping-habit data on customers who already have their wallets open and their foot in the aisle.