The retail media landscape is witnessing significant shifts, and Walmart Connect, the retail media division of Walmart, is at the forefront of this transformation. With the launch of a new display advertising API, Walmart Connect is revolutionizing the way brands and agencies manage their ad campaigns. This innovative tool enables businesses to directly manage their ads from their own platforms, seamlessly integrating them with paid search, thereby enhancing campaign efficacy and segmentation.
The introduction of this API marks a pivotal milestone in Walmart Connect’s advertising strategy. Previously, vendors could only book display ads through Walmart Connect’s interface, limiting their control over ad management. Now, with this update, advertisers can utilize their own management tools to direct and optimize their ads with greater precision, streamlining their marketing efforts.
Initial results from the implementation are encouraging, with Walmart reporting that customers who interacted with both search and display ads from the same brand were three times more likely to make a purchase and spent 40% more compared to those who only saw search ads. Notably, sectors such as consumer electronics, toys, and seasonal products have seen a 67% increase in sales when combining search and display ads, compared to search-only campaigns.
Since its transformation from Walmart Media Group to Walmart Connect, the company has diversified its advertising offerings, expanding beyond paid search ads to include self-service ad bookings, campaign APIs, and second-price auctions. In tandem, Walmart has strengthened its market presence through a partnership with The Trade Desk, leading to the development of Walmart’s demand-side platform (DSP). This platform provides advertisers with access to connected TV (CTV) and social media inventories, sectors experiencing rapid growth.
However, a gap existed in Walmart’s advertising model, where external advertising drew in potential customers, and search ads finalized purchases, but lacked a stronger intermediate connection in the conversion funnel. The new display advertising API aims to bridge this gap, offering a more comprehensive advertising solution.
Walmart Connect has also introduced a partner classification system to facilitate advertisers’ choice of provider. This system establishes two tiers: Premium Partners, experts in Walmart Connect advertising solutions offering basic campaign execution and optimization support; and Premium Partner+, specialists in data-driven strategies and advanced optimization, focusing on long-term growth and full-funnel strategies. Initially, this classification will apply only to partners providing campaign management services, but Walmart Connect plans to expand the program throughout the year.
Looking ahead, Walmart Connect is experimenting with Clean Rooms, analytics environments that comply with privacy regulations, enabling advertisers to obtain more granular information beyond standard reports. This solution targets large consumer goods manufacturers requiring detailed consumer behavior analysis. The company also plans to further integrate CTV, having already incorporated NBCUniversal, Disney, and Paramount’s CTV inventory into its DSP. The recent acquisition of smart TV manufacturer Vizio is expected to reinforce this business area, with Ryan Mayward, Senior Vice President of Sales at Walmart Connect, stating that Vizio is an “ideal addition” to their business.
As Walmart Connect intensifies its competition with Amazon, the retail media landscape is becoming increasingly dynamic. According to a report by eMarketer, 46% of advertisers used Walmart Connect in 2024, marking significant growth from 24% in 2023. One of Walmart’s key advantages over Amazon is its extensive network of physical stores, with approximately 5,200 Walmart and Sam’s Club locations in the United States. By combining online advertising with in-store presence, Walmart offers brands a direct connection to the point of sale. The US in-store retail media market is expected to grow from $360 million to $1 billion by 2028.
Walmart’s business figures underscore its expansion in this sector, with advertising now accounting for a third of its total revenue. In 2024, its advertising business grew by nearly 30%, outpacing Amazon’s growth rate. With the launch of the new API and increasing integration of CTV advertising, Walmart Connect is solidifying its position in the US retail media market, emerging as a serious competitor in the digital advertising industry.
