Walmart Is Bringing Digital Ads To An Aisle Near You

According to CNBC, Walmart shoppers "will soon see more third-party ads on screens in Walmart self-checkout lanes and TV aisles; hear spots over the store's radio; and be able to sample items at demo stations." From the report: For Walmart, selling ad space to its wealth of existing partners is another way to capitalize on the company's huge reach and to expand into higher-margin businesses. The discounter has nearly 4,700 stores across the U.S., with roughly 90% of Americans living within 10 miles of a Walmart store. In the U.S., about 139 million customers visit Walmart stores and its website or app each week. The company plans to ramp up in-store ads using its approximately 170,000 digital screens across its locations as well as 30-second radio spots that will be available to suppliers later this year and can target a specific store or region. And it's hoping at least one of the new advertising initiatives will be easy to digest: free samples in stores on the weekends. It tried out the new in-house approach of selling sampling stations in Dallas-Fort Worth and plans to offer the option in more than 1,000 stores across the country by the end of January. Advertising still drives a small sliver of Walmart's overall revenue. Its global advertising business hit $2.7 billion in the most recent fiscal year, which ended in late January. That's less than 1% of Walmart's total annual revenue. Yet it is becoming a more meaningful growth engine for Walmart. CEO Doug McMillon said earlier this year that he expects company profits to grow faster than sales over the next five years, driven in part by higher-margin businesses, including advertising. In the most recent fiscal year, Walmart's global ads business grew nearly 30% and its U.S. ads business, Walmart Connect, rose about 40%. That's a sharper gain than the approximately 7% increase in Walmart's total revenue and Walmart U.S. net sales during the period.

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