Amazon didn’t just build a successful advertising business — it showed every other major retailer what was possible. Walmart and Target are now running hard to build their own versions. The gap is wide, but the opportunity is real.
Walmart Connect: Scale Is the Advantage
Walmart’s advertising platform — Walmart Connect — is increasingly seen as a significant revenue opportunity. Its advertising business has grown substantially, with operating margins estimated at around 70% — comparable to Amazon’s. Advertising profits are estimated to represent around 10% of Walmart’s 2024 operating income. Walmart’s key asset: it serves more than 90% of US households within 10 miles of a store, creating a first-party data set that bridges physical and digital shopping behaviour in a way Amazon cannot replicate.
Target’s Roundel: The Loyalty Angle
Target rebranded its retail media network as Roundel in 2019. Roundel grew more than 20% in 2023 and contributed over $1.5 billion in value to both sales and gross profit. Target’s strength is its loyal, high-spending customer base — and its off-site capabilities, allowing brands to reach Target shoppers across the web using first-party purchase data.
The Practical Implication for Brands
Amazon’s advertising revenue of approximately $47 billion dwarfs Walmart’s and Target’s current numbers — the gap reflects Amazon’s earlier start, superior e-commerce penetration, and more mature technology. But the direction of travel at Walmart and Target is clearly right. For brands, diversifying retail media investment beyond Amazon is both strategically sound (reducing platform dependence) and commercially attractive: early movers get more attention and better pricing from retailer sales teams still hungry for spend. Build the Walmart Connect and Roundel relationships now, before they achieve Amazon Ads’ pricing power.