Retail media advertising has become one of the fastest-growing segments in e-commerce.
For years, Amazon has dominated this space, building the largest retail media platform in the world. In 2025 alone, Amazon generated $68.6 billion in advertising revenue, making it the clear leader in marketplace advertising.
However, a new competitor is expanding rapidly.
Walmart’s advertising business generated $6.4 billion in revenue in 2025, growing 46% year-over-year, according to research from Marketplace Pulse.
While the total revenue difference remains large, the growth trajectory suggests that Walmart’s advertising ecosystem is still in an early expansion phase.
For Amazon sellers, this trend raises an important strategic question:
Should marketplace advertising remain Amazon-only, or should sellers begin exploring multi-marketplace advertising strategies?
In this article, we examine what Walmart’s advertising growth means for Amazon sellers and how brands should think about marketplace diversification.
Contents
Understanding Walmart Advertising Revenue Growth
Walmart’s advertising growth is primarily driven by Walmart Connect, the company’s retail media platform.
According to Marketplace Pulse, Walmart’s advertising revenue increased to $6.4 billion in 2025, representing a 46% annual increase.
Amazon’s advertising revenue grew to $68.6 billion, but its growth rate was lower at 22%.
The difference highlights two key realities.
First, Amazon remains the dominant retail media platform by a significant margin.
Second, Walmart’s advertising ecosystem is still early in its development cycle.
Advertising Penetration Comparison
A useful way to compare advertising ecosystems is to measure advertising revenue relative to total marketplace sales.
Amazon advertising revenue represents approximately 8% of its $830 billion e-commerce GMV.
Walmart advertising revenue represents about 4% of its $150 billion e-commerce GMV.
This suggests that Walmart still has substantial room to expand its advertising business as its marketplace grows.
For sellers, this indicates that advertising opportunities on Walmart may still be developing.
Why Amazon Sellers Should Pay Attention
The rapid growth of Walmart advertising highlights a broader shift in the retail media landscape.
Historically, most sellers relied almost entirely on Amazon for advertising-driven traffic.
However, as other marketplaces develop their own advertising ecosystems, sellers may benefit from diversifying their acquisition channels.
Potential advantages of testing Walmart advertising include:
- Less mature advertising competition
- New customer acquisition channels
- Additional marketplace visibility
However, sellers must also evaluate whether Walmart’s current marketplace scale aligns with their growth strategy.
The Role of Walmart Connect
Walmart Connect has become the central driver of Walmart’s retail media expansion.
The platform experienced 41% growth in Q4, indicating strong advertiser adoption.
Walmart Connect allows brands to run advertising campaigns that appear in:
- Walmart search results
- Product detail pages
- Off-site digital placements
Additionally, Walmart’s acquisition of Vizio introduces connected TV advertising opportunities that extend beyond traditional marketplace placements.
This integration expands Walmart’s advertising inventory and strengthens its retail media capabilities.
How Big Internet Ecommerce Can Help
At Big Internet Ecommerce, we help brands build scalable marketplace growth strategies.
As the retail media ecosystem expands, sellers need structured strategies to decide when and how to diversify beyond Amazon.
Our team helps sellers with:
Marketplace Expansion Strategy
We evaluate whether brands are ready to expand beyond Amazon and identify opportunities across additional marketplaces.
Cross-Platform Advertising Strategy
We analyze advertising performance across platforms to identify the most efficient customer acquisition channels.
Marketplace Listing Optimization
Selling successfully on Walmart requires different listing strategies than Amazon.
We help sellers optimize listings for new marketplaces while maintaining strong brand consistency.
Amazon remains the dominant retail media platform and will likely continue to lead the market for years.
However, the rapid growth of Walmart advertising signals that the retail media ecosystem is evolving into a multi-platform environment.
For Amazon sellers, the key takeaway is not that Walmart will replace Amazon, but that marketplace diversification may become an increasingly important strategic consideration.
Brands that monitor these shifts early will be better positioned to adapt their advertising strategies as the retail media landscape continues to evolve.
If you want help evaluating your advertising strategy or exploring multi-marketplace growth opportunities, schedule a call with our team.
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