The Big Ad Boom: How Retail Giants and Social Platforms Are Reshaping Digital Advertising

$649M

Target’s ad revenue grew 24% YoY to $649M in 2024, with its digital media unit Roundel generating $2B in value and Q4 revenue up 14% YoY to $190M. Despite economic challenges and a consumer boycott, Target sees Roundel as a key growth driver, benefiting from a 35% increase in sponsored product ads and a 40% rise in small business advertisers. Executives expect Roundel’s business to double in five years as it aligns more with Target’s social commerce and membership programs.

27%

​Walmart Connect's ad business grew 27% to $4.4 billion in 2024, boosted by a new Display Advertising API. This API allows brands to combine search and display ads, making customers three times more likely to purchase and spend 40% more. Notably, campaigns in the entertainment, toys, and seasonal categories saw a 67% sales boost when using both ad types. ​

70%

​Recent Gartner research indicates that marketing budgets have decreased from 9.1% of company revenue in 2023 to 7.7% in 2024, with only 24% of CMOs feeling they have sufficient funds to execute their strategies. Additionally, 70% of marketing leaders struggle to measure ROI, and 66% find it challenging to demonstrate campaign impact to stakeholders. ​

87%

​Recent data indicates that 87% of senior marketing decision-makers have encountered campaign performance issues in the past 12 months. Additionally, a report by The Australian emphasizes that over-investing in performance advertising can reduce ROI by 20-50%, while a balanced mix of brand and performance marketing can lift ROI by 25-100%, with an average increase of 90%. These insights highlight the challenges marketers face in balancing campaign volume and effectiveness.​

27%

​Walmart's global advertising revenue grew 27% year-over-year to $4.4 billion in 2024, with a 29% increase in Q4 and a 24% rise in U.S. ad sales through Walmart Connect. The company's recent $2.3 billion acquisition of Vizio aims to enhance its advertising capabilities by integrating Vizio's SmartCast OS, offering brands more precise targeting opportunities. This strategic move positions Walmart to better compete with Amazon, whose ad revenue surpassed $56 billion last year. ​

$32.4B

TikTok's ad revenue is expected to reach $32.4 billion in 2025, growing 24.5% YoY, but a potential U.S. ban could put $12 billion at risk. The U.S. accounts for nearly 40% of TikTok's ad revenue, and if banned, Meta could absorb 55% of its lost ad spend. Despite uncertainties, TikTok is set to claim 11% of the global social media ad market.

$56.2B

​Amazon's advertising revenue reached $56.2 billion in 2024, up from $46.9 billion in 2023. To strengthen its position in the connected TV (CTV) market, Amazon introduced Complete TV, an AI-powered tool within its Demand-side Platform (DSP) that helps media buyers optimize streaming campaigns across Prime Video and other premium publishers. This move aligns with the growing CTV ad market, which is projected to reach $35.2 billion in 2024. ​