tech
Walmart's head of growth says AI is rewriting the rules for its fast-growing ads business
Ads have already overrun conventional search results, but Walmart's head of growth is taking a slower, more strategic approach to ads in AI commerce.
TL;DR
- Walmart is testing ads within its AI shopping assistant, Sparky.
- The company aims for a more strategic and less intrusive advertising approach compared to conventional search results.
- Walmart's ads business generated $6.4 billion in revenue last year, with 46% growth.
- AI-driven conversations with Sparky provide deeper insights into customer needs than traditional search queries.
- Ads are seen as a way to improve shopping experiences, introduce new products, and boost merchandise sales.
- Walmart is currently prioritizing learning from customer interactions with Sparky over ad revenue from the assistant.