Walmart Ad Revenue Growing 2x Faster Than Amazon

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. Anything that moves the fee, fulfillment, or returns metrics gets pulled into our weekly cockpit review, and this fits. Anything that moves the fee, fulfillment, or returns metrics gets pulled into our weekly cockpit review, and this fits.

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.

Why This Matters for Amazon Sellers

Amazon vs. Walmart Advertising: 2025 Numbers

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