Online marketplaces are now the top choice for buyers and sellers worldwide. Businesses no longer depend only on traditional retail because eCommerce platforms have created direct ways to connect with customers. Among these platforms, Amazon and Walmart are the biggest players. Both have powerful advertising networks that help sellers increase sales, improve visibility, and build brand authority.
Many sellers ask which is better between Amazon Advertising and Walmart Advertising. To answer this, we must look at ad types, campaign costs, targeting options, placements, and competition. This guide will cover everything in detail so you can choose the right platform for your business.
Why Marketplace Advertising Matters
Marketplace advertising is now one of the most effective ways to capture buyer attention. With millions of products listed every day, sellers cannot rely on organic reach alone. Paid advertising gives sellers the chance to:
- Improve product visibility
- Gain Buy Box eligibility
- Compete with established brands
- Target specific keywords, products, and categories
- Control ad spend with pay per click advertising models
Amazon Advertising and Walmart Advertising both run on PPC systems. Sellers only pay when a shopper clicks on their ad. This makes advertising cost-effective and performance-driven.
What is Amazon Advertising?
Amazon Advertising is the in-house retail media platform managed through Amazon Seller Central. It allows sellers to create ad campaigns that reach millions of active Amazon shoppers. The main goal is to drive traffic, increase conversions, and boost product rankings.
Types of Amazon Ads
- Amazon Sponsored Products
- Appear in search results and product detail pages. Best for individual product promotion.
- Sponsored Brands
- Show your brand logo, tagline, and multiple products in search results. Useful for brand awareness.
- Sponsored Display
- Targets audiences on and off Amazon. Great for retargeting and cross-selling.
- Sponsored Video
- Short videos placed in search results to engage shoppers. Highly effective for visual storytelling.
What is Walmart Advertising?
Walmart Advertising, also called Walmart Connect, is the retail media network of Walmart. It allows sellers to promote products across Walmart’s online store and its in-store digital displays. The focus is to give brands exposure both online and offline.
Types of Walmart Ads
- Walmart Sponsored Products
- Appear in search results and product detail pages on Walmart.com.
- Sponsored Brands
- Highlight your brand with multiple items, similar to Amazon’s format.
- Sponsored Display
- Target customers across Walmart digital properties and partner sites.
- In-store Digital Ads
- Unique to Walmart, these ads run on digital displays inside physical stores.
Amazon Advertising vs Walmart Advertising: Key Differences
| Feature | Amazon Advertising | Walmart Advertising |
|---|---|---|
| Marketplace Size | Largest global marketplace with millions of sellers | Growing marketplace with fewer sellers, less competition |
| Ad Types | Sponsored Products, Brands, Display, Video | Sponsored Products, Brands, Display, In-store Ads |
| Auction Model | Second price auction (winner pays slightly above second highest bid) | First price auction (winner pays exact bid) |
| CPC (Cost Per Click) | Higher due to competition | Lower due to fewer advertisers |
| Ad Placements | Search results, product pages, external sites | Search results, product pages, in-store displays |
| Targeting Options | Keyword targeting, product targeting, category targeting, audience retargeting | Keyword targeting, product targeting, category targeting, geo-targeting |
| Seller Access | Amazon Seller Central | Walmart Connect |
| Brand Visibility | High but competitive | Easier visibility due to less competition |
Auction Models Explained
Advertising success depends on how auction systems work.
- Amazon’s Second Price Auction: You bid a maximum amount, but you only pay slightly more than the second-highest bid. This makes bidding more efficient and reduces overspending.
- Walmart’s First Price Auction: You pay the exact bid you place. This makes bidding riskier but gives more control to advertisers who want top placements.
Cost Per Click (CPC) Comparison
Amazon Advertising has higher CPC rates because of its massive competition. Popular categories like electronics, beauty, and home goods often reach several dollars per click.
Walmart Advertising usually has lower CPCs because fewer sellers advertise on the platform. For new sellers, this means cost-effective entry into retail media advertising.
Ad Placements and Visibility
Amazon ads appear across search results, product detail pages, and even external partner websites. Sponsored Brands and Sponsored Display ads offer wide exposure.
Walmart ads appear in similar placements online but also extend to in-store digital displays. This unique feature allows Walmart to connect digital campaigns with physical shopping experiences.
Keyword Targeting and Campaign Management
Both Amazon and Walmart allow sellers to use keyword targeting, product targeting, and category targeting.
- You can automate Amazon PPC campaigns or manage them manually, using broad, phrase, and exact match keywords.
- Walmart PPC campaigns provide simpler structures but also include geo-targeting, which Amazon does not offer.
Campaign management is crucial on both platforms. Sellers need to test keywords, track CPC, monitor ROI, and optimize bids regularly.
Brand Visibility and Competition
Amazon has higher traffic and a massive customer base, but this also means intense ad competition. New sellers may struggle to rank unless they spend heavily.
Walmart offers less traffic but lower competition, giving newer sellers a fair chance to stand out. With strategic ad placements, brands can secure better visibility with smaller budgets.
Which Platform is Better for Sellers?
The answer depends on your business goals:
- Choose Amazon Advertising if you want global reach, higher traffic, and advanced targeting options. It suits established sellers ready to invest in competitive ad campaigns.
- Choose Walmart Advertising if you want lower CPC, less competition, and exposure in both online and offline retail. It suits newer sellers looking for cost-effective brand visibility.
Many successful brands use both platforms to maximize reach and diversify ad strategies.
Future of Marketplace Advertising
Retail media advertising is growing fast. Both Amazon and Walmart are expanding their ad products. Sponsored Video and interactive ad formats are gaining traction. As competition rises, sellers who master PPC strategies will secure long-term growth.
FAQs About Amazon Advertising vs Walmart Advertising
Yes, Walmart ads usually cost less per click because there is less competition compared to Amazon.
Yes, many brands advertise on both platforms to maximize visibility and sales.
Amazon uses a second price auction while Walmart uses a first price auction system.
Yes, Walmart offers digital in-store ads that Amazon does not provide.
Amazon offers more exposure, but Walmart gives easier visibility due to fewer advertisers.
Yes, both Amazon and Walmart support category targeting options.
Walmart Connect is Walmart’s retail media platform for managing ad campaigns.
Yes, Sponsored Video ads boost engagement and conversions for visual products.
Track CPC, adjust keyword bids, use product targeting, and optimize based on performance reports.
Amazon will continue dominating globally, but Walmart will grow in the US market due to its strong offline presence.
Final Thought
Both Amazon Advertising and Walmart Advertising offer powerful opportunities for sellers. Amazon provides unmatched global reach, advanced targeting, and huge traffic, but it comes with high competition and higher CPC costs. Walmart, on the other hand, gives sellers the advantage of lower ad competition, affordable clicks, and unique in-store ad placements.
The best choice depends on your goals, budget, and growth strategy. For most brands, combining both platforms ensures maximum visibility and sales potential. Sellers who master campaign management, keyword targeting, and ad optimization will always stay ahead in the competitive world of retail media advertising.
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