Walmart is aggressively investing in artificial intelligence and agentic technologies for its advertising platform, positioning itself against Amazon’s ad business. Recent announcements include incorporating ads into Sparky, Walmart’s AI shopping assistant, and introducing Marty, an AI-powered advertising assistant currently in beta for sponsored search campaigns. Walmart’s focus on AI-driven insights and creative solutions mirrors Amazon’s approach with its ad tool, Rufus. The shift towards AI in retail reflects consumer trends towards AI chatbots for shopping. With 81% of customers interested in using Sparky for product inquiries, Walmart is leveraging its extensive first-party data for targeted advertising. Walmart Connect’s ad revenue reached $4.4 billion in 2024, growing significantly compared to Amazon’s ad revenue of $17.7 billion for the same period. Experts predict that Walmart could rival Amazon’s ad business within a few years, solidifying the dominance of these two retailers in the evolving retail media landscape.
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