Walmart's Advertising Revenue Is Outpacing Amazon's
In recent years, Walmart has seen significant growth in its advertising revenue, surpassing Amazon’s growth rate. This article explores the factors contributing to Walmart’s advertising success and how it compares to Amazon’s advertising performance.
Walmart’s Advertising Growth
Walmart’s advertising business has experienced remarkable growth, with revenues reaching $6.4 billion in 2025. This represents a 46% increase from the previous year. In contrast, Amazon generated $68.6 billion in advertising revenue, growing by 22%. While the absolute dollar gap remains substantial, the relative growth rates indicate that Walmart is closing in on Amazon.
Understanding the Revenue Metrics
It is important to note that Walmart’s advertising revenue figure includes contributions from VIZIO, a connected TV manufacturer acquired in late 2024. The VIZIO ad network operates outside the traditional retail media environment, which means that Walmart does not separately disclose its contributions. Despite this, Walmart’s CFO, John David Rainey, highlighted “triple-digit growth” for VIZIO advertising, albeit from a small base.
Walmart Connect and E-commerce Performance
Walmart Connect, the U.S. platform where sellers bid for search placements, grew by 41% in the fourth quarter of 2025. This growth is particularly significant for sellers looking to gain visibility on the platform. Furthermore, Walmart’s global e-commerce exceeded $150 billion for the first time in fiscal year 2026, a milestone that underscores the company’s expanding online presence.
Comparative Analysis with Amazon
When comparing the advertising revenues of Walmart and Amazon, it is essential to consider their respective e-commerce bases. Amazon’s advertising revenue represents approximately 8% of its estimated $830 billion gross merchandise volume (GMV). In contrast, Walmart’s $6.4 billion in advertising revenue, when measured against its $150 billion e-commerce base, indicates a penetration rate of around 4%. This suggests that Walmart’s advertising revenue is closer to a 2:1 ratio compared to Amazon, rather than the previously stated 11:1 ratio based on total revenue.
Future Growth Potential
Walmart’s advertising revenue growth is indicative of its potential to capture a larger share of the advertising market. CFO Rainey emphasized that there is still significant room for growth, particularly when considering advertising as a percentage of the addressable market or GMV. Walmart’s e-commerce operation, which was losing over $1 billion annually as recently as 2019, has turned profitable in every quarter of fiscal year 2026, with double-digit incremental margins.
The Role of Advertising in Profitability
Advertising has played a crucial role in Walmart’s turnaround. The full-year advertising revenue of $6.4 billion equated to over a fifth of Walmart’s $29.8 billion operating income. This demonstrates how advertising is not just an ancillary revenue stream but a vital component of Walmart’s overall business strategy.
Marketplace Dynamics
Walmart’s marketplace is still in its early stages, with an estimated GMV of around $15 billion, representing roughly 10% of its $150 billion e-commerce base. In comparison, Amazon’s marketplace GMV is estimated at 69%. This disparity highlights the potential for growth in Walmart’s marketplace, which can further enhance its advertising revenue.
Conclusion
Walmart’s advertising revenue is on an upward trajectory, outpacing Amazon’s growth rate. With significant investments in e-commerce and advertising, Walmart is positioning itself as a formidable competitor in the online retail space. As the company continues to expand its advertising capabilities and marketplace offerings, it is likely to capture an even larger share of the market in the coming years.
Frequently Asked Questions
Walmart’s advertising revenue growth can be attributed to the expansion of its advertising platform, Walmart Connect, and the acquisition of VIZIO, which added a new revenue stream. Additionally, the company’s overall e-commerce growth has provided a larger base for advertising revenue.
While Walmart’s advertising revenue is significantly lower in absolute terms compared to Amazon’s, its growth rate is outpacing Amazon’s. Walmart’s advertising revenue reached $6.4 billion in 2025 with a 46% growth rate, while Amazon generated $68.6 billion with a 22% growth rate.
The acquisition of VIZIO is significant because it expanded Walmart’s advertising capabilities beyond traditional retail media. VIZIO’s ad network allows Walmart to tap into connected TV advertising, which is a growing segment of the advertising market.
Note: The information presented in this article is based on data available as of February 2026 and may be subject to change as new data becomes available.
