Walmart's Advertising Revenue Is Outpacing Amazon's

Why It Matters

The rapid expansion positions Walmart as a credible challenger in the retail‑media market, reshaping advertising spend and seller strategies across the industry.

Key Takeaways

• Walmart ad revenue grew 46% versus Amazon's 22%
• Dollar gap narrowed to 11:1, still large
• VIZIO acquisition inflates growth; core platform grew 41% Q4
• Advertising now >20% of Walmart's operating income
• Marketplace GMV only 10% of e‑commerce, far behind Amazon

Pulse Analysis

Retail media is becoming a cornerstone of e‑commerce profitability, and Walmart’s recent performance highlights a shift in the competitive landscape. While Amazon still dominates in absolute spend, Walmart’s 46% year‑over‑year growth—driven by its Walmart Connect platform and the recent VIZIO acquisition—signals a strategic push to capture more of its $150 billion e‑commerce base. Analysts note that the inclusion of VIZIO’s connected‑TV ads inflates the headline figure, but the core platform’s 41% Q4 increase demonstrates genuine momentum among sellers seeking visibility on the world’s largest brick‑and‑mortar chain.

The financial impact is equally striking. Advertising now contributes roughly 20% of Walmart’s operating income, a substantial leap from its modest share a few years ago. This revenue stream helped the retailer transition from a $1 billion e‑commerce loss in 2019 to consistent quarterly profitability in FY26, with double‑digit incremental margins. For merchants, the growing cost of Walmart ads reflects both rising competition and expanding audience reach, especially as the marketplace segment—currently only 10% of Walmart’s total e‑commerce GMV—offers a less saturated alternative to Amazon’s 69% marketplace share.

Looking ahead, Walmart’s ability to sustain double‑digit ad growth will hinge on scaling its marketplace and deepening integration of VIZIO’s TV inventory. If the retailer can increase the proportion of GMV generated through its marketplace, the addressable advertising market will expand, potentially narrowing the 11:1 revenue gap with Amazon. Investors and advertisers alike will watch how Walmart balances aggressive ad pricing with value creation for sellers, a dynamic that could redefine retail media economics over the next few years.