Walmart reported 38% global ad revenue growth in its second quarter and confirmed the integration of its recently acquired CTV platform Vibe.co into Walmart Connect. The retailer is leveraging its first-party commerce data and Vizio ownership to scale its retail media and streaming advertising capabilities against Amazon.
The integration of Vibe.co and Vizio signals Walmart's transition from a traditional retailer to a sophisticated media owner capable of closing the loop between streaming ads and physical transactions. By leveraging first-party commerce data across its massive physical footprint, Walmart is positioning itself as the primary alternative to Amazon for brands seeking measurable retail media outcomes. This strategy shifts the competitive landscape of CTV from pure viewership metrics to direct-to-cart conversion data. Watch for the first unified reporting metrics from the combined Vizio and Vibe.co stack to see if Walmart can bridge the scale gap with Amazon's $76 billion ad business.
Walmart's retail media ambitions have accelerated through a series of strategic acquisitions that position Walmart Connect as a full-funnel advertising platform. In early 2025, Walmart completed its acquisition of Vizio for $2.3 billion, gaining access to the SmartCast operating system and its 18 million active accounts, which gave the retailer direct ownership of a CTV hardware and software ecosystem. The Vibe.co acquisition, announced in mid-2025, added a programmatic CTV advertising platform that enables real-time bidding on streaming inventory, complementing Vizio's device-level reach with transactional ad-serving capabilities. Together, these assets allow Walmart Connect to offer advertisers a closed-loop measurement path from streaming ad exposure to in-store or online purchase, a capability that few competitors outside Amazon can match at scale.
The competitive pressure from Amazon's advertising business continues to intensify. Amazon reported $15.7 billion in advertising revenue for Q2 2025, representing 22% year-over-year growth, maintaining its position as the third-largest digital ad platform behind Google and Meta. Amazon's advantage lies in its Prime Video streaming inventory combined with purchase data from its e-commerce marketplace, creating a similar closed-loop attribution model to what Walmart is now building. Walmart's 38% ad growth rate significantly outpaces Amazon's, though from a much smaller base. The retailer's global ad revenue reached approximately $4.4 billion in Q2 fiscal 2026, compared to Amazon's $15.7 billion, highlighting the scale gap that Walmart Connect must close. Industry analysts note that Walmart's physical store network of over 10,500 locations provides a unique offline attribution layer that Amazon lacks.
On the technical and measurement front, Walmart Connect has invested in identity resolution and attribution infrastructure to make its CTV offering credible to performance-focused advertisers. Walmart Connect launched its measurement partnership with Innovid in late 2024 to enable cross-screen attribution across Vizio SmartCast devices, allowing brands to track ad exposure on television screens against downstream purchase behavior. The integration of Vibe.co's programmatic layer is expected to enable real-time audience targeting using Walmart's first-party shopper data, similar to how Amazon DSP uses shopping signals to target Prime Video ads. Seth Dallaire, who leads Walmart Connect, has emphasized that the combined Vizio and Vibe.co stack will support both brand and performance objectives, with early pilot campaigns showing conversion lift rates comparable to Amazon's Sponsored TV product. The broader retail media market is projected to reach $150 billion globally by 2027, according to eMarketer estimates, making Walmart's accelerated buildout a significant competitive development for the CTV advertising ecosystem.
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