What was once seen as a traditional brick-and-mortar retail giant is now a powerful e-commerce and advertising ecosystem competing directly with Amazon and Target in digital advertising, marketplace sellers and retail media.

For brands, especially those entering retail marketplaces for the first time, understanding how Walmart advertising works, which ad formats exist and which strategies drive ROI can be the difference between slow movement and predictable growth.

This guide breaks down Walmart’s advertising model, targeting options, campaign structure, costs and what makes Walmart a unique platform for both established brands and emerging sellers.

What is Walmart Advertising and How Does It Work?

Walmart advertising (formerly Walmart Media Group, now Walmart Connect) is a retail media ecosystem that allows brands to promote their products across Walmart’s digital and physical touchpoints.

Advertising placements include:

• Walmart.com marketplace

• Walmart online grocery

• Walmart app

• In-store screens

• Search results

• Product detail pages

• Display inventory across partner networks

The core objective is straightforward:

Help brands increase product visibility at the exact moment shoppers are ready to buy.

Unlike traditional advertising, retail media platforms like Walmart have a massive advantage:

Access to buying intent
Access to first-party purchase data
Alosed-loop attribution (ad → purchase → lift)

This makes Walmart advertising extremely attractive for CPG brands, grocery suppliers, emerging D2C players and Amazon sellers expanding into retail.

Walmart Advertising vs. Amazon Advertising: What’s Different?

Amazon pioneered retail media advertising, so naturally, Walmart is compared to it. While both platforms offer sponsored ads and marketplace visibility, three key differences stand out:

1. Shopper Demographics

• Walmart shoppers skew value-driven and family-oriented

• Stronger representation in grocery, home essentials and CPG

• Larger blended audience across in-store + online

2. Retail Media Reach

• Walmart integrates in-store digital screens, which Amazon does not

• This creates omnichannel exposure from aisle to checkout

• Stronger link between physical + digital product discovery

3. Marketplace Structure

• Walmart's marketplace is less saturated than Amazon's

• Competition is lower in many categories

• Ad CPCs tend to be cheaper, especially for new entrants

For emerging brands, this often translates into:

Faster ranking improvements
Lower customer acquisition costs
Stronger platform - level retail partnerships

Types of Walmart Ads Available to Brands

Walmart offers a structured advertising stack that’s simpler than Amazon’s but still highly effective. Key formats include:

1. Sponsored Search Ads

These appear in Walmart.com search results and product listings.

Brands can bid on:

• Branded keywords (“Tide detergent”)

• Generic category keywords (“laundry soap”)

• Competitor keywords

Sponsored products help brands:

• Capture share of search

• Accelerate product launches

• Steal competitor placement

• Boost bestseller rank

2. Sponsored Brand Amplifier

These appear at the top of search pages featuring:

• Brand logo

• Tagline

• A carousel of products

This helps drive:

• Brand recall

• Cross-category exposure

• Multi-SKU engagement

3. Display Advertising (Programmatic)

Walmart partners with The Trade Desk for programmatic buying, allowing brands to run:

• Banner ads across Walmart’s digital properties

• Retargeting across ad networks

• Upper-funnel awareness campaigns

4. In-Store Advertising

Walmart’s in-store network includes:

• TV screens

• Smart displays

• Self-checkout screens

This omnichannel pairing gives Walmart a unique ability to:

• Promote a product online

• Reinforce in-store at the point of decision

Most retail competitors cannot deliver that loop.

Is Walmart Advertising Effective for Small & Emerging Brands?

Yes—if executed well.

In fact, small brands often have three major advantages:

Fewer direct competitors compared to Amazon
Cheaper clicks due to lower bidding competition
Higher discoverability in underserved categories

For example, emerging brands in:

• Health supplements

• Ethnic foods

• Household supplies

• Toys

• Pet care

often see strong performance because Walmart customers are actively browsing those aisles both online and offline.

Not every category behaves the same, but Walmart offers fertile ground for brands priced competitively and positioned for family buyers.

How Much Does Walmart Advertising Cost?

Walmart uses an auction-based CPC model similar to Amazon. While pricing varies by category, typical advertising costs include:

• CPC (Cost Per Click): $0.30 – $1.50

• Minimum Daily Budget: ~$50 per campaign (flexible)

• Management Fees: If using agency or API partners

Total ad budgets scale based on goals:

• Product launches: higher initial push

• Competitive categories: higher CPCs

• Evergreen campaigns: consistent long-tail spend

Most emerging brands begin with test budgets between $1,500 – $5,000/month to validate ROAS and optimise listings.

What Factors Influence Success in Walmart Ad Campaigns?

Success on Walmart advertising isn’t just about bids - it’s about retail execution. Top performance drivers include:

1. Buy Box & Marketplace Presence

To run ads, you must win the buy box. Poor pricing or low inventory blocks ad delivery.

2. Listing Quality

High-performing listings include:

• Optimized titles

• SEO-rich bullet points

• High-resolution images

• Comparison graphs

• A+ enhanced content (when available)

3. Pricing Strategy

Walmart shoppers are price-sensitive. Competing SKUs must reflect:

• Everyday low price (EDLP)

• Competitive positioning against Amazon

• Consistent pricing across channels

4. Inventory Management

Stockouts kill campaign momentum. Walmart expects reliable fulfilment performance.

API-first platforms with order management solutions help sellers:

• Sync inventory across channels

• Avoid overselling

• Maintain buy-box presence

5. Smart Retargeting

Walmart’s first-party data allows:

• Retargeting shoppers who viewed but didn’t buy

• Cross-selling complementary SKUs

• Lifecycle marketing based on purchase frequency

Brands that treat Walmart as a true performance channel, not a dumping ground, win faster.

Optimising Walmart Advertising for Better ROI

To get more from Walmart ad spend, brands should:

Start with branded + generic keywords
Gradually test competitor keywords
Map campaigns to funnel stages (awareness → conversion)
Use programmatic to build awareness for new SKUs
Improve listing SEO before scaling media spend
Use Walmart Connect analytics for insights
Monitor product-level ROAS weekly

Brands selling on multi-channel platforms (Amazon, D2C, Shopify, etc.) should also unify reporting across channels using e-commerce store analytics, enabling better attribution and channel budgeting.

Frequently Asked Questions (FAQ)

1. What is Walmart advertising and how does it work?
Walmart advertising uses retail media placements across Walmart’s online and in-store ecosystem to promote products to shoppers based on intent and historical purchase data.

2. How is Walmart advertising different from Amazon advertising?
Walmart offers omnichannel placements across physical stores and digital properties, whereas Amazon’s network is primarily online. Walmart also has less marketplace saturation, leading to lower CPCs in many categories.

3. What types of ads are available in Walmart advertising?
Walmart offers sponsored search ads, brand amplifiers, display advertising, programmatic media via The Trade Desk and in-store ad screens.

4. Is Walmart advertising effective for small and emerging brands?
Yes, especially in categories with lower competition. Walmart’s shopper base is price-sensitive and loyal, making it a strong channel for CPG and household goods.

5. How much does Walmart advertising typically cost?
CPC ranges from $0.30–$1.50 depending on category competitiveness. Test budgets typically range from $1,500–$5,000/month for emerging brands.

6. What factors influence success in Walmart advertising campaigns?
Listing quality, pricing competitiveness, inventory management, funnel-based strategy and proper campaign structure contribute heavily to performance.

7. How can brands optimise their Walmart advertising strategy for better ROI?
By improving SEO, testing keyword strategies, leveraging retargeting, enhancing listings and using Walmart Connect analytics for continuous optimisation.

Conclusion

Walmart advertising may not be as mature as Amazon’s retail media platform, but it offers massive omnichannel reach, unique shopper demographics and scalable opportunities for brands that invest in operational excellence.

For emerging brands, Walmart can serve as both a marketplace growth engine and a retail media test bed - with lower competition and smarter attribution thanks to in-store + online shopper signals.

As retail media continues to reshape the advertising landscape, Walmart’s position between ecommerce, grocery and physical retail makes it one of the most valuable channels for growth-minded companies in 2025 and beyond.