Walmart CEO says the big-box retailer is well-positioned to grow its advertising business
After Walmart‘s earnings report impressed Wall Street on Tuesday, CEO Doug McMillon told CNBC’s Jim Cramer that his company has unique advantages in the advertising space.
“When you grow your digital reach, and you’ve got an e-commerce business that’s scaling like ours is,” McMillon said, “You get an opportunity to sell advertisements, and we can connect the dots for advertisers.”
Walmart’s global advertising business climbed 28% for the year, McMillon said, adding that the big-box retailer’s e-commerce sales topped $100 billion for the first time. The company also announced on Tuesday it would acquire TV maker Vizio for $2.3 billion to further grow its ad business.
According to McMillon, Walmart’s strength lies in its reach and ability to effectively measure the success of advertisements.
“If [advertisers] advertise with a digital ad, for example, and a customer transacts a week later in a store or club, we can connect that up for them and let them know that the ad really worked,” he said. “That’s the differentiating advantage that we’ve got.”
McMillon also attributed some of Walmart’s recent success to its ability to attract and retain customers across income brackets, as well as its focus on convenience. He said the company has managed to keep prices in a “good range” despite stubborn inflation, and it offers customers a variety of delivery services, including the subscription program Walmart+.
