Walmart executives detailed a major expansion for the company's advertising division at the Goldman Sachs Communacopia + Technology Conference. The company is repositioning its Walmart Connect unit from a retail media network into a full-scale performance advertising platform.
This strategy shifts focus toward advertising budgets typically spent on social media and connected TV. The advertising business reportedly carries margins above 70%, far exceeding the profitability of Walmart's core retail operations.
Management identified marketplace sellers as a primary growth driver for the platform. The company also highlighted the recent acquisition of VIZIO as a key move to bolster its connected TV offerings.