Walmart’s advertising business continues to gain serious momentum. The retail giant reported $6.4 billion in global advertising revenue for the full fiscal year, marking a 46% year-over-year increase. In the U.S., its retail media division, Walmart Connect, grew revenue by 41% in Q4 alone, a critical quarter that includes the holiday shopping season.
Advertising and membership fees, two of Walmart’s highest-margin segments, accounted for one-third of operating income in Q4, highlighting how central retail media has become to the company’s profitability strategy.
Executives see “Plenty of Runway”
Despite already delivering strong growth, Walmart leadership believes the opportunity is far from saturated.
“We still have long ways to go here to get in the neighborhood of some of the best-in-class competitors,” said CFO John Rainey during the earnings call. “We feel like we can improve our own advertising capabilities while doing it on a growing base, which gives us a lot of runway into the future.”
A key driver of growth is increased demand from Walmart’s marketplace, particularly from third-party sellers. Unlike traditional first-party brand advertising, marketplace sellers are increasingly investing in sponsored listings and retail media placements to gain visibility within Walmart’s ecosystem.
Vizio: Unlocking video & full-funnel retail media
Another strategic lever is Walmart’s acquisition of Vizio, purchased two years ago for $2.3 billion.
While operating from a smaller base compared to Walmart’s core U.S. business, Vizio gives Walmart a significant entry point into connected TV (CTV) advertising, a crucial component as retail media networks expand into full-funnel marketing ecosystems.
“We saw triple-digit growth in advertising with our Vizio business in the quarter,” Rainey noted. “This is exciting because it gives us yet another channel to market to our customers. And I feel like that’s really just getting started.”
CTV advertising strengthens Walmart’s ability to connect upper-funnel brand awareness campaigns with lower-funnel purchase data, a major competitive advantage in retail media.
Structural changes to support global expansion
To further scale its advertising ambitions, Walmart implemented leadership changes designed to unify growth platforms and replicate U.S. success internationally.
In January, the company promoted Seth Dallaire to Chief Growth Officer. His expanded oversight now includes Walmart Connect, Walmart+, Walmart Data Ventures, Vizio, and the global marketplace platform.
CEO John Furner, who recently stepped into the top role, described the move as a signal of confidence:
“I think that signals confidence that the capabilities we have built in the U.S. are exportable to other markets, and we can work with our other markets to accelerate these platforms to grow.”
Retail media’s expanding role
Walmart’s performance reflects a broader industry shift: retailers are evolving into media companies. By combining first-party data, marketplace inventory, membership programs, and connected TV capabilities, Walmart is building a comprehensive advertising ecosystem.
With strong margins, rising advertiser demand, and expanding video capabilities through Vizio, Walmart appears positioned for sustained growth in retail media.
If current momentum continues, the $6.4 billion milestone may just be the beginning.
