"ChatGPT now drives roughly 20% of Walmart's referral traffic, Modern Retail previously reported. It's worth noting, however, that referral clicks account for less than 5% of total site visits. A working paper authored by OpenAI's Economic Research team found that around 2% of all ChatGPT queries involve shopping, or about 50 million queries per day. Selling its wares within ChatGPT positions Walmart to capture sales if AI-powered shopping takes off."
"If shoppers complete transactions inside ChatGPT, Walmart may miss out on opportunities to serve its lucrative on-site ads. "Roughly two-thirds of U.S. retail media spending still goes to sponsored search ads," said Sarah Marzano, a principal analyst covering retail and ecommerce at at eMarketer. "If we see consumer behavior shift away from retailers' owned and operated websites, the value of that ad inventory inherently decreases because there's less traffic and fewer searches to monetize.""
Walmart Connect transformed into a major profit engine by selling search and display placements across Walmart.com and its app, generating $4.4 billion last year and accounting for nearly one-third of operating income. A new partnership with OpenAI lets shoppers buy products directly inside ChatGPT, increasing referral traffic but risking diversion from Walmart's own site. ChatGPT drives about 20% of Walmart's referral traffic while referral clicks remain under 5% of total visits and roughly 2% of ChatGPT queries involve shopping. If transactions move into ChatGPT, on-site ad impressions and sponsored-search revenue could decline, reducing the value of retail ad inventory.
Read at Modern Retail
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