Why Walmart Is Putting Ads in Its AI Assistant (And Why It's Smart)

Should retailers put ads in their AI shopping assistants? Walmart is testing exactly that with its AI engine Sparky, and the strategic implications could reshape retail media as we know it.

This isn't just about adding another ad placement. Walmart's move addresses a critical question facing every retailer: where is shopping traffic actually coming from, and how should you monetize it? With generative AI searches already converting at higher rates and Walmart's ad business growing nearly 100% year-over-year, this test could unlock decidedly incremental margin while solving the bigger puzzle of whether retailers need to connect with platforms like ChatGPT. We break down why this strategy makes sense and what it signals about the future of retail media networks.

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