Walart’s 2022 Q3 ad revenue grew by 30%
Walmart’s Q3 earnings were released this week. Things are looking good for the retail giant. Their advertising revenue increased by 30% over Q2.
Doug McMillon, President and CEO of Walmart Connect in the U.S., stated that the growth was due to more items and sellers driving GMV and customer satisfaction. He also said that advertising success is mutually reinforcing. Double-clicking advertising with Walmart Connect in America shows that it is benefiting from both growth in ecommerce and improvements within the business. We’ve also seen strong growth in the return on ad spending over the past year.
WalmartConnect. Connect is Walmart’s self-service advertising platform. This platform allows retailers to create an online account, upload their product SKUs to Walmart’s platform and wait for approval.
Like advertising, expanding our marketplace business unlocks fulfillment service opportunities through fulfillment centers and last mile delivery. These businesses are being scaled in the U.S. and we are now looking to expand in Mexico and Canada. The Mexican team increased the number of sellers in our marketplace by 20% over the last quarter. The marketplace on Walmart.com in the United States now has approximately 370 million SKUs.
This is a more than 50% increase over Q2. Many of these sellers are eager to take advantage of our fulfillment network. They want to make use of our advertising capabilities to drive sales, which we are making easier. Recently, we shared with you that all U.S. marketplace sellers are now eligible for a 5% commission.
You will automatically be added to our self-service advertising platform. This seamless integration will allow both businesses to scale faster. Our results show that we are able to run engaging stores and clubs, scale first- and second-party ecommerce businesses, and connect them in an omnichannel fashion that is cost-effective and efficient for customers and members. Our strategy opens up new growth opportunities and a thread that runs across digital retail, fulfillment and advertising. It also opens up more opportunities in financial services and health and wellness.
Doug McMillon
Snap, TikTok and Roku are all partners. Walmart also increased its ecommerce platform through the power of ads on TikTok and Roku. Walmart will be able to measure all sales generated by those ads.
Dig deeper. The earnings announcement can be viewed here.
Why we care. Walmart could be a great place to test your ecommerce brand or retailer if you are looking to increase your reach and connect to new customers.
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