Ad dollars flow in for Walmart in Q1

Retail chain behemoth Walmart reported its revenue increased 6% year over year for its fiscal first quarter 2025 ended April 30, and its U.S. ecommerce sales increased 22% year over year.

Walmart also reported that its global advertising business grew 24%, which includes a 26% increase for its U.S. advertising segment called Walmart Connect. This U.S. segment grew 30% in Walmart’s fiscal 2024.

“Walmart’s U.S. ad sales reflected more than 50% growth from marketplace sellers, while overall active advertiser counts increased nearly 19%,” John David Rainey, Walmart’s executive vice president and chief financial officer told investors on an earnings call according to a SeekingAlpha transcript. “Sam’s ad business now has 30% more active advertisers versus last year.”

Recently, Walmart has made a larger push into revenue from advertising dollars, which is poised to grow even more.

Within the quarter, Walmart announced it would acquired SmartTV manufacturer Vizio for $2.3 billion. The move could allow Walmart to sell advertisements across Vizio’s screens and apps along with viewership data. With the trove of data of what consumers are watching, Walmart can link in its own customer data to serve targeted ads for Walmart products on Vizio devices.

“We believe Vizio’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart U.S., in a release announcing the acquisition. “Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week.”

In addition, Walmart made a larger push into allowing brands to advertise in Walmart stores in 2023. It sold spots on screens in Walmart’s self-check out lanes and TV aisle and over the store’s radio.

Read more details on Walmart’s fiscal Q1 2025 earnings here.