What's Happening
Walmart's advertising business grew 46% in 2025, reaching $6.4 billion. Amazon's ad revenue grew 22%, hitting $68.6 billion. In raw dollars, Amazon is still 11x larger. But the growth gap is narrowing fast. Two years ago, the ratio was 15:1. Now it's 11:1.
That's the headline from Marketplace Pulse's analysis published February 26, 2026. The data comes from Walmart's Q4 FY26 earnings report, where the company also confirmed that its e-commerce business crossed $150 billion in annual sales for the first time. E-commerce is now profitable every quarter.
For Amazon sellers, this isn't just a competitor story. It's a signal. Walmart is becoming a real alternative advertising platform. And as more ad dollars flow there, two things happen: Walmart's ad costs go up, and Amazon faces pressure to deliver better PPC performance to keep sellers from shifting budgets.
Walmart Ad Growth (2025)
46%
$6.4B total ad revenue
Amazon Ad Growth (2025)
22%
$68.6B total ad revenue
Revenue Ratio Gap
11:1
Down from 15:1 two years ago
Walmart Q4 FY26 Earnings
Walmart reports 46% ad revenue growth in 2025, e-commerce crosses $150B
Marketplace Pulse Analysis
Analysis confirms Walmart ad growth is 2x faster than Amazon's 22% rate
Walmart Connect Expansion
Walmart Connect opens self-serve DSP to mid-size sellers for the first time
Why This Matters for Amazon Sellers
Rising Competition for Ad Dollars
As Walmart becomes a credible ad platform, brands are splitting budgets across both marketplaces. That means the brands you compete with on Amazon are also investing in Walmart. If they build strong positions on both platforms, they'll have diversified traffic sources and more pricing use. Sellers who only advertise on Amazon are increasingly at a disadvantage.
Pressure on Amazon to Deliver ROAS
When sellers have a real alternative, Amazon can't just raise CPCs without consequences. Marketplace Pulse notes that Amazon's ad revenue growth slowed from 26% in 2024 to 22% in 2025. If Walmart keeps growing at 40%+, Amazon will need to improve ad efficiency, roll out better targeting, or risk losing mid-market sellers who are cost-sensitive.
Walmart's E-Commerce Is Now Profitable
Walmart's e-commerce crossed $150B in 2025 and is profitable every quarter. That's a signal of sustainability. It's not a loss leader anymore. Walmart is investing in fulfillment infrastructure, marketplace growth, and ad tech because the unit economics work. For sellers considering multi-channel, this removes the "Walmart isn't serious" objection.
Amazon vs. Walmart Advertising: 2025 Numbers
| Metric | Amazon | Walmart |
|---|
| 2025 Ad Revenue | $68.6B | $6.4B |
| YoY Growth | 22% | 46% |
| E-Commerce GMV | ~$830B (est.) | $150B+ |
| Self-Serve Ad Platform | Mature (all seller tiers) | Expanding (mid-size+) |
| DSP Access | Open to all advertisers | Opening to mid-size in Q1 2026 |
| Ad Revenue as % of GMV | ~8.3% | ~4.3% |
Sources: Marketplace Pulse, Digital Commerce 360, Walmart Q4 FY26 earnings, Amazon Q4 2025 earnings.
Walmart Connect: The Part Sellers Care About
Walmart Connect, the segment that covers marketplace advertising (the equivalent of Amazon's Sponsored Products, Sponsored Brands, and Sponsored Display), grew 41% in Q4 2025. That's the fastest-growing segment within Walmart's already fast-growing ad business.
What's driving it? Three things. First, Walmart's marketplace seller count is growing. More sellers means more competition for visibility, which means more ad spend. Second, Walmart opened self-serve DSP access to mid-size sellers in early 2026, bringing programmatic advertising to a broader audience. Third, Walmart's e-commerce traffic is growing steadily, which means ad impressions are increasing alongside ad spending.
For context, Walmart's ad revenue as a percentage of GMV is still only 4.3%, compared to Amazon's 8.3%. That gap represents runway. As Walmart's ad platform matures, that percentage will climb. Sellers on Walmart today are getting cheaper CPCs than they would on Amazon for similar categories. That won't last forever.
What This Means for Your Strategy
- Track your Amazon ROAS closely. If your PPC costs are rising while conversion rates stay flat, that's a sign the competitive pressure from multi-platform sellers is hitting your categories. Use custom analytics to benchmark your ACoS and TACoS trends month over month.
- Evaluate Walmart as an ad channel. If you're already selling on Walmart, test advertising there. CPCs are lower, competition is lighter, and Walmart's ad platform has improved significantly. Daily tracking across platforms will help you compare true ROI.
- Diversify, don't abandon. Amazon is still 11x larger. It's your primary revenue channel. But building a presence on Walmart now means you're positioned when their ad costs inevitably rise. The sellers who got into Amazon PPC early benefited from low CPCs. The same opportunity exists on Walmart today.
- Watch the ad-to-GMV ratio. Walmart's 4.3% ad take rate will climb as the platform matures. When it does, ad costs for sellers will follow. Getting established on Walmart before that happens gives you a head start with reviews, organic ranking, and lower customer acquisition costs.
Why Multi-Channel Analytics Matter More Now
As sellers spread budgets across Amazon, Walmart, and potentially other marketplaces, the need for unified analytics grows. You can't optimize what you can't compare. Tracking Amazon and Walmart performance in separate dashboards creates blind spots.
Nova's profit and loss analytics help you see true profitability across channels. Combined with winner/loser detection and Custom Breakdowns, you can identify which products perform best on which platform and allocate ad spend accordingly.
The sellers who win in a multi-platform world aren't the ones spending the most. They're the ones who know exactly where each dollar produces the best return. That requires data, not guesswork.
The Bottom Line
Key Takeaway
Walmart's ad business is growing twice as fast as Amazon's. The dollar gap is still massive, but the trajectory matters. Sellers who build multi-channel strategies now will have more use, more diversified revenue, and better unit economics than those who wait until Walmart's ad costs catch up to Amazon's. Track your numbers. Test the water. And make sure you're seeing performance data from both platforms in one place.
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