Walmart’s U.S. advertising unit, Walmart Connect, has seen significant growth in revenue in the retailer’s fiscal Q2 2025. According to an earnings statement, Walmart Connect grew revenue by 30% year over year, while the company’s global advertising business, which includes India-based Flipkart, was up 26% year-over-year. While Walmart does not disclose specific revenue figures for advertising, it has revealed that the business generates billions annually.
One of the key drivers of growth for Walmart Connect during this period was marketplace sellers, smaller and emerging brands that sell their products through Walmart. Ad sales derived from this category climbed nearly 50%, showcasing the importance of these sellers to Walmart’s advertising business. Walmart CEO Doug McMillon highlighted the contribution of newer businesses like marketplace, advertising, and membership, stating that they are diversifying profits and reinforcing the resilience of the company’s business model.
In an effort to expand the reach of its advertising partners, Walmart Connect has been working on increasing the number of places where ads can be purchased. In-store and offsite channels have been key priorities for the retail media network. More ads have started appearing in self-checkout lane screens, TV aisles, sampling stations, and over Walmart’s store radios as the retailer aims to better monetize its brick-and-mortar footprint. In the offsite arena, Connect has struck deals with publishers like Disney to leverage first-party shopper data for better targeting and measuring ads on connected TV. Walmart’s recent acquisition of smart TV maker Vizio for $2.3 billion has also strengthened its position in the video advertising space.
The growth of Walmart’s e-commerce business in Q2 likely contributed to the success of onsite advertising, or campaigns that run on properties Walmart owns. Walmart leads among retail media networks in generating onsite advertising impressions, according to third-party analysis. Global e-commerce sales were up 21% year-over-year, making a significant contribution to the overall results for the quarter.
The positive earnings report impressed Wall Street, beating sales estimates and leading Walmart to raise its outlook for the full year. U.S. comparable sales increased by 4.2%, while consolidated revenues were up by 4.8% to $169.3 billion. Advertising and membership growth accounted for over 50% of operating income growth for the quarter, highlighting the importance of these segments to Walmart’s financial performance.
In conclusion, Walmart Connect’s strong performance in Q2 2025, driven by marketplace sellers and strategic partnerships, showcases the retailer’s commitment to diversifying its revenue streams and leveraging its vast network of stores and online platforms for advertising opportunities. As Walmart continues to invest in its advertising business and expand its reach, it is poised for continued growth and success in the competitive retail landscape.