Walmart’s Real-Life Ad Fairytale Began In 2023
Walmarts Ad Products Are Performing Strongly
Ad budgets across Amazon Sponsored Products, Google Search, Facebook, Instagram, and YouTube in 2023 began with a whimper and ended strong, but one of the more interesting storylines from performance agency Tinuiti’s Q4 2023 Digital Ads Benchmark Report released this week came from Walmart. Tinuiti’s report found that three-quarters of all Walmart’s search-advertising clicks were generated from its mobile app.
The investments advertisers made in Walmart Sponsored Products grew every quarter last year — peaking at 62% year -over-year (YoY) in Q4 after growing 55% in Q3. Cost-per-click (CPC) growth topped 30% in each of the last two quarters of the year, following five straight quarters of YoY declines in CPC. This follows Walmart’s June 2022 move to switch from a first-price auction to a second-price auction.