The news: Walmart’s advertising business is scaling rapidly even as growth rates begin to normalize.
- Walmart generated $6.4 billion in global ad revenues in 2025, including Vizio; up 46% YoY, according to Adweek. Walmart Connect in the US grew 41% in Q4 alone.
- YoY growth slowed to 37% in Q4 from 53% in Q3; CFO John David Rainey attributed the deceleration to scale effects rather than weakening demand. “You get to the law of large numbers,” he told investors, adding he does not see overall advertising progress slowing.
- The Vizio acquisition is contributing meaningfully; Rainey said the business saw triple-digit ad growth in the quarter and is selling inventory with a reported $200,000 minimum buy.
- Walmart is also testing ads within its AI chatbot, Sparky, which executives say is already influencing higher basket sizes; ecommerce sales were up 27% YoY for the period.
Our forecasts support the expansion. US Walmart ad revenues are projected to rise from $2.51 billion in 2023 to $7.02 billion in 2027; worldwide revenues are expected to reach $8.82 billion by 2027.
Why it matters: The composition of Walmart’s ad growth suggests improving monetization across formats and channels.
- US onsite retail media ad revenues are forecast to increase from $2.27 billion in 2023 to $5.11 billion in 2027, per our forecast; growth moderates from 32.8% in 2025 to 12.4% by 2027 as the base expands.