Walmart’s Global Ad Business Grew 26% in Q2

Walmart’s ambitions to be a major advertising player are continuing to grow.

The retailer reported global ad business growth of 26% year-over-year during the second quarter of its financial year 2025 earnings. Within the U.S., Walmart’s ad business, called Walmart Connect, saw 30% year-over-year growth during the quarter. 

Walmart specifically credited third-party marketplace sellers, which allows brands to list and sell their own items, for the advertising boost. Ad revenue from third-party marketplace sellers increased by nearly 50% year-over-year during the quarter.

The retailer did not disclose the total size of its ad business. Walmart last pegged its global ad business at $3.4 billion in a year-end earnings report for its fiscal year 2024.

Walmart is the second-largest retail media player behind Amazon, according to Emarketer. The research firm expects for Walmart to make $3.7 billion from advertising this year, while Amazon is expected to make $42 billion in the U.S. To compare, Target is expected to make $1.76 billion, and Instacart will hit $1 billion in the U.S., per Emarketer.

Advertising is one of several growth drivers for Walmart in making ecommerce profitable. Walmart’s membership model, sales from its third-party marketplace, and fulfillment centers are other areas of growth, said chief financial officer John David Rainey during the quarter’s earnings call.

Walmart is going for big brand money

Endemic brands that sell their products with Walmart make up the bulk of the retailer’s ad business, but Walmart also has its eyes on new types of advertisers.

Walmart has recently upped its pitch to non-endemic advertisers, opening up in-store ad formats on self-checkout kiosks and on TV walls, according to a pitch deck. The TV wall ads, for example, run on an average of 20 screens per store and are played between 3 and 12 times per hour. And the ads that appear on self-checkout kiosks are seen by 105 million weekly shoppers. 

Walmart is also working with broadcasters like Disney to provide advertisers with shopper data that is used to better target and measure TV ads.