If you sell on Amazon, you already know how competitive the platform has become. CPCs keep climbing. Ad placements are more crowded than ever. And every percentage point of margin matters. So when a channel offers 40-50% lower cost-per-click, a growing audience of 120-150 million monthly unique visitors, and far less advertiser competition, it deserves your attention.
That channel is Walmart Connect. And for Amazon sellers who are looking to diversify revenue without reinventing their advertising playbook, it represents one of the best growth opportunities available right now.
This guide breaks down everything you need to know to start advertising on Walmart Connect. We will cover the ad types, how costs compare to Amazon, how to set up your first campaigns, and the tactical differences that matter most when you make the transition.
Table of Contents
- 1. What is Walmart Connect?
- 2. Why Amazon Sellers Should Advertise on Walmart
- 3. Walmart Connect Ad Types Explained
- 4. Key Differences Between Amazon PPC and Walmart Connect
- 5. How to Get Started: Setting Up Your First Walmart Campaign
- 6. Campaign Optimization Tips for Amazon Sellers Transitioning to Walmart
- 7. Common Mistakes to Avoid
- 8. Next Steps
1. What is Walmart Connect?
Walmart Connect is Walmart's retail media platform. It allows marketplace sellers and brand owners to run paid advertising across Walmart.com, the Walmart app, and Walmart's network of partner sites. Think of it as Walmart's answer to Amazon Advertising.
Originally launched as Walmart Media Group, the platform was rebranded to Walmart Connect in 2021. Since then, it has grown rapidly. Walmart Connect grew 31% year-over-year in Q1 of fiscal year 2026, and Walmart reported $4.4 billion in global advertising revenue for FY2025. Industry projections estimate that figure will reach $6.2 billion by 2026.
The platform is still maturing, which is exactly why the opportunity is so compelling. The advertiser-to-seller ratio on Walmart is significantly lower than on Amazon. With 150,000-200,000+ marketplace sellers (compared to Amazon's millions), you face less bidding competition for many of the same product categories.
If you are already running Amazon PPC, you will find the Walmart Connect interface and campaign structure familiar. The learning curve is manageable. The real differences are in auction mechanics, attribution, and audience behavior. We will cover each of those in detail.
2. Why Amazon Sellers Should Advertise on Walmart
Expanding to Walmart is not about abandoning Amazon. It is about building a second profitable channel that reduces your dependence on a single marketplace. Here are the numbers that make the case.
Lower CPCs mean higher margins. The average cost-per-click on Walmart Sponsored Products ranges from $0.30 to $0.90. That is roughly 40-50% lower than comparable Amazon CPCs. For sellers in competitive categories where Amazon CPCs have crossed $1.50 or even $2.00+, Walmart offers a chance to acquire customers at a fraction of the cost.
Strong ROAS out of the gate. Walmart Sponsored Products typically deliver a return on ad spend in the $4-$8 range. Buy Box placements specifically tend to show the highest performance, with average ROAS around $6.0. These are strong numbers, especially when you consider the lower entry cost.
Massive, purchase-ready audience. Walmart.com attracts 120-150 million monthly unique visitors, making it the second-largest retail website in the United States. These shoppers are high-intent buyers. Walmart's customer base also skews differently from Amazon's, giving you access to demographics and geographies you may not be reaching today.
Less competition for ad placements. With 150,000-200,000+ marketplace sellers compared to Amazon's several million, the auction dynamics on Walmart are far less crowded. This means better placement visibility and more affordable bids, particularly in categories that are already saturated on Amazon.
3. Walmart Connect Ad Types Explained
Walmart Connect offers five primary ad formats. If you are coming from Amazon, you will recognize the general structure, but there are some important differences in how each format works.
3.1 Sponsored Products
This is the workhorse of Walmart advertising and the best place for most sellers to start. Sponsored Products are cost-per-click ads that appear in search results (in-grid), on browse pages, on product detail pages, and in the Buy Box carousel.
You can run Sponsored Products using two targeting methods:
- Keyword targeting: You select specific keywords and set bids for each. This works similarly to Amazon Sponsored Products manual campaigns.
- Automatic targeting: Walmart's algorithm matches your ads to relevant searches based on your product listing content. This is useful for keyword discovery, just like Amazon auto campaigns.
The minimum CPC bid is $0.20, and ads are charged on a cost-per-click basis. Buy Box placements tend to deliver the strongest ROAS (around $6.0 on average), so optimizing your product listings for Buy Box eligibility is critical.
3.2 Sponsored Brands
Sponsored Brands ads display your brand logo alongside a curated selection of products at the top of search results. They function similarly to Amazon Sponsored Brands (formerly Headline Search Ads).
These ads are available only to brand-registered sellers on Walmart. They are ideal for building brand awareness and driving consideration at the top of the funnel. When a shopper clicks on a Sponsored Brands ad, they can be directed to a brand shelf page or a specific product listing.
If you are already running Sponsored Brands on Amazon, this format will feel very familiar. The key difference is that competition for these placements is significantly lower on Walmart, meaning your brand can own premium visibility at a lower cost.
3.3 Sponsored Videos
Sponsored Videos appear within search results as in-line video placements. They auto-play as the shopper scrolls, making them highly attention-grabbing.
This format is particularly effective for new-to-brand customer acquisition. Industry data shows that approximately 60% of Sponsored Video impressions come from shoppers who are new to the brand. If you are trying to introduce your product to Walmart's audience for the first time, video is one of the strongest tools available.
Video creative requirements are straightforward. You need a short, high-quality video (typically 15-30 seconds) that showcases your product's key benefits. If you have existing video assets from Amazon Sponsored Brands Video campaigns, you can often repurpose them for Walmart with minor adjustments.
3.4 Onsite Display
Onsite Display ads use audience-based targeting to reach shoppers across Walmart.com and the Walmart app. Unlike Sponsored Products (which are keyword-driven), Display ads are served based on shopper behavior, purchase history, and demographic data.
These are CPM-based ads (cost-per-thousand impressions), and they are managed through Walmart DSP or The Trade Desk. Onsite Display supports retargeting, allowing you to re-engage shoppers who have viewed your products but not yet purchased.
This format sits higher in the funnel and works best as a complement to your Sponsored Products campaigns. Use it for brand awareness, retargeting, and category conquest strategies.
3.5 Offsite Display
Offsite Display extends the power of Walmart's first-party shopper data to the open web. Your ads appear on third-party websites and apps, but they are targeted using Walmart's purchase and browsing data.
This is a significant advantage. Walmart's first-party data is based on real transaction history from both online and in-store purchases. That makes the targeting signals extremely valuable for reaching high-intent shoppers even when they are not actively browsing Walmart.com.
Offsite Display is typically used by brands with larger budgets who want to build full-funnel advertising programs. If you are just getting started on Walmart, focus on Sponsored Products first and layer in Display campaigns once you have baseline performance data.
4. Key Differences Between Amazon PPC and Walmart Connect
While the platforms share structural similarities, several key differences will directly impact your campaign performance and strategy. Understanding these before you launch will save you time and budget.
Quick Answer: The Auction Model
Both Walmart and Amazon now use second-price auctions for Sponsored Products. You pay based on the next-highest bid, not your full bid amount. Walmart transitioned from a first-price to an advanced second-price model in 2023. However, Walmart's Onsite Display ads still use a first-price auction, so bid management for display campaigns requires more precision than search.
Attribution window. Walmart uses a 14-day attribution window by default. Amazon's default is 7 days. This means Walmart will attribute conversions to your ads over a longer period, which can make your ROAS appear higher. Keep this in mind when comparing performance across platforms. The metrics are not apples-to-apples without adjusting for the attribution difference.
Minimum CPC. Walmart's minimum CPC bid is $0.20. There is no equivalent floor on Amazon. This means you cannot run ultra-low bids on Walmart. Your bidding strategy needs to account for this floor, especially in lower-competition categories where Amazon bids might fall below $0.20.
Listing content matters more. Walmart's organic search algorithm and ad relevance scoring rely heavily on your product listing quality. Rich media content, complete attribute fields, and strong product titles directly influence your ad eligibility and placement. On Amazon, you can sometimes muscle your way into placements with higher bids despite mediocre listings. That strategy is less effective on Walmart.
Buy Box dynamics. On Walmart, winning the Buy Box is essential for ad eligibility. If you do not hold the Buy Box, your Sponsored Products ads may not serve at all. This is similar to Amazon but enforced more strictly. Make sure your pricing, shipping speed, and seller metrics are competitive before investing in ads.
Fewer negative targeting options. Walmart's negative keyword and targeting capabilities are more limited than Amazon's. You have less granular control over where your ads do not appear. This makes keyword research and campaign structure even more important upfront.
5. How to Get Started: Setting Up Your First Walmart Campaign
Here is a step-by-step walkthrough for Amazon sellers who want to launch their first Walmart Connect campaign.
Step 1: Get approved as a Walmart Marketplace seller
Before you can advertise, you need an active Walmart Marketplace seller account. Apply through Walmart's seller center. Approval typically takes 2-4 weeks. You will need a U.S. business tax ID, a product catalog, and a track record of e-commerce experience (your Amazon seller history helps here).
Step 2: Optimize your product listings
Do not skip this step. Your listing quality directly affects ad performance on Walmart. Focus on these elements:
- Product title: Include your primary keywords. Walmart's algorithm weighs titles heavily.
- Key features and description: Complete all available attribute fields. Use natural, keyword-rich language.
- Images: Use high-resolution images with a white background. Include lifestyle images and infographics.
- Rich media: Add enhanced content (Walmart's equivalent of A+ Content) wherever possible.
- Pricing and shipping: Ensure your price is competitive and you offer fast shipping options. Both affect Buy Box eligibility.
Step 3: Access Walmart Connect Ad Center
Log into Walmart Seller Center and navigate to the Walmart Connect Ad Center. This is where you will create and manage all of your campaigns. The interface is clean and intuitive, especially if you are familiar with Amazon's Campaign Manager.
Step 4: Launch an automatic Sponsored Products campaign
Start with an automatic campaign to gather data. Set a daily budget of $20-$50 and let Walmart's algorithm identify which search terms drive clicks and conversions for your products. Run this for 2-3 weeks before making major adjustments.
Step 5: Build manual keyword campaigns based on your data
After your auto campaign has collected enough data, pull your search term report. Identify the converting search terms and move them into manual keyword campaigns with targeted bids. This is the same auto-to-manual harvesting workflow you likely use on Amazon.
Step 6: Set your bids strategically
Walmart now uses a second-price auction for Sponsored Products, similar to Amazon. You will not pay your full bid every time. That said, start with bids in the $0.30-$0.50 range for most categories. Monitor your impression share and adjust up or down based on visibility and ROAS. Walmart's $0.20 minimum CPC means you cannot test with ultra-low bids the way you can on Amazon.
6. Campaign Optimization Tips for Amazon Sellers Transitioning to Walmart
Your Amazon PPC experience gives you a significant head start. Here are the tactical adjustments to make as you optimize your Walmart campaigns.
Start bids lower than your Amazon equivalents. Walmart CPCs are 40-50% lower than Amazon's, so your Amazon bid levels will likely overshoot on Walmart. Start at 50-60% of your Amazon bids for the same keywords and increase incrementally based on impression share and ROAS data. The $0.20 minimum CPC also means you need to structure your low-bid testing differently than on Amazon.
Focus on listing quality score. Walmart assigns a listing quality score that affects your ad relevance and eligibility. Check your listing quality dashboard regularly and address any flags. Missing attributes, low image count, or incomplete descriptions will hurt your ad performance more than they would on Amazon.
Use the 14-day attribution window to your advantage. Walmart's longer attribution window captures more conversions. This is especially beneficial for higher-priced products with longer consideration cycles. When reporting to stakeholders, note the attribution difference to set accurate expectations.
Monitor Buy Box ownership closely. If you lose the Buy Box, your ads stop serving. Set up alerts or check daily to ensure you maintain Buy Box eligibility. This is particularly important if you are competing with other sellers or if Walmart itself sells your product category.
Leverage your Amazon keyword data. Your highest-performing Amazon keywords are a strong starting point for Walmart campaigns. Export your Amazon search term reports and use converting terms as seed keywords for your Walmart manual campaigns. The search intent is often similar across platforms.
Test Sponsored Videos early. With 60% of Sponsored Video impressions reaching new-to-brand customers, this format is a powerful tool for building your Walmart customer base. If you have video assets from Amazon, repurpose them. The investment in video creative pays off quickly on Walmart given the lower competition for video placements.
Segment campaigns by match type. Just as you would on Amazon, create separate campaigns or ad groups for broad, phrase, and exact match keywords. This gives you cleaner data and more precise bid control. Exact match keywords should carry your highest bids, while broad match campaigns serve as discovery tools.
7. Common Mistakes to Avoid
We have helped many Amazon sellers expand to Walmart Connect. These are the mistakes we see most often.
- Treating Walmart bids like Amazon bids. This is the most expensive mistake. Walmart's CPC environment is 40-50% cheaper than Amazon's. Sellers who port over their Amazon bid levels without adjusting for Walmart's lower competitive landscape massively overpay for clicks and waste significant budget in their first few weeks. Start bids at 50-60% of your Amazon levels and scale from there.
- Launching ads before optimizing listings. Walmart's ad algorithm factors in listing quality more heavily than Amazon's. Running ads on poorly optimized listings results in low relevance scores, poor placements, and wasted spend. Invest time in your listings before spending a dollar on ads.
- Ignoring the Buy Box. Some sellers launch campaigns without confirming they hold the Buy Box. If you do not own the Buy Box, your Sponsored Products ads will not serve consistently. Check your Buy Box status before allocating ad budget.
- Comparing raw ROAS numbers across platforms. Walmart's 14-day attribution window inflates ROAS compared to Amazon's 7-day window. A $6 ROAS on Walmart and a $5 ROAS on Amazon might represent similar actual performance. Always normalize for attribution when comparing cross-platform results.
- Setting it and forgetting it. Walmart's ad platform is evolving quickly. New features, bid modifiers, and targeting options are released regularly. Sellers who set up campaigns and stop checking them miss optimization opportunities and may find their campaigns underperforming as the competitive landscape shifts.
- Skipping automatic campaigns. Some experienced Amazon advertisers jump straight to manual campaigns on Walmart. This is a mistake. Walmart's search behavior differs from Amazon's. Running auto campaigns first reveals Walmart-specific search terms and shopper patterns you would not discover otherwise.
- Spreading budget too thin across ad types. Start with Sponsored Products. Get profitable there first. Then layer in Sponsored Brands and Sponsored Videos. Trying to run all ad types from day one with a limited budget dilutes your data and slows your learning curve.
8. Next Steps
Walmart Connect represents a genuine growth opportunity for Amazon sellers and brands in 2026. The combination of lower CPCs, strong ROAS, a massive shopper audience, and less advertiser competition creates favorable conditions that will not last forever. As more sellers discover the platform, costs will rise and competition will intensify.
The best time to establish your presence on Walmart Connect is now, while the economics are still in your favor.
Here is your action plan:
- Apply for a Walmart Marketplace seller account if you do not already have one.
- Optimize your top-performing ASINs for Walmart's listing quality standards.
- Launch automatic Sponsored Products campaigns with a $20-$50 daily budget.
- Harvest converting search terms and build manual keyword campaigns after 2-3 weeks.
- Monitor Buy Box status, bid efficiency, and listing quality scores daily.
- Layer in Sponsored Brands and Sponsored Videos once your Sponsored Products campaigns are profitable.
If you are already running Amazon PPC successfully, you have the foundational skills to make Walmart Connect work. The tactical adjustments are manageable, and the upside is significant.
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