The announced acquisition of TV manufacturer Vizio by Walmart will marry Walmart's streaming content with a key appliance supplier, boosting opportunities to create advertising revenue.
The acquisition would give Walmart a stronger foothold in the smart TV market through Vizio's SmartCast platform, boosting Walmart's position in the battle against other major retailers, ranging from Amazon to Target and Costco.
But the deal also makes Walmart a bigger player in the advertising market, positioning the firm to compete to some extent with Amazon, Google and Meta for digital ad spending.
By some estimates, Amazon controlled 75 percent of the $45.15 billion U.S. retail media ad market in 2023. Of course, the total U.S. digital ad market is larger.
U.S. Digital Advertising Estimates, in Billion USD
Other estimates of retailer advertising suggest a smaller market. The IAB, for example, estimates current retailer revenues at lower levels. But most estimates suggest Walmart shows the fastest growth in the category.
In 2023, for example, Walmart digital ad revenues grew 42 percent. Amazon almost certainly posted the greatest amount of net new ad revenues in 2023 at $5.5 billion.
But retail leads digital advertising, accounting for perhaps 28 percent of all such advertising in 2023, followed by consumer packaged goods at about 15 percent of total and financial services at about 11 percent of total.
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