Key takeaways: 

1. Walmart advertising is all the digital advertising options available to third-party sellers on the Walmart marketplace. 
2. Walmart advertising operates on a PPC (pay-per-click) model which means you only pay when shoppers click on your ads. 
3. Walmart Ad types include Sponsored Products, Sponsored Brands, Sponsored Videos, and Onsite Display Ads. 
4. To make the most out of Walmart advertising, you want to optimize your product listings, keep an eye on your performance metrics and make adjustments, target your audiences effectively, optimize for mobile, and also stay up-to-date with platform updates. 
5. There are no setup fees or monthly subscription costs. You pay for clicks, and you control your bids and budgets.
6. Your listings must be live, in stock, and able to win the Buy Box before your Sponsored Products ads will serve.

Walmart is one of the largest online marketplaces in the world and has emerged as a powerhouse platform for business owners and retailers looking to tap into the vast potential of America's shoppers. 

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On the Walmart marketplace, Walmart advertising has become an indispensable tool for businesses seeking to stand out in this competitive market.

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Whether you're already an ecommerce expert or you’re just starting your journey on Walmart's marketplace, read on as we look at Walmart Advertising and how this powerful marketing tool can be a game changer for your business.

What is Walmart Advertising?

Walmart advertising is all the digital advertising options available to third-party sellers on the Walmart marketplace. 

It allows you to promote your products through paid ads on Walmart.com, the Walmart mobile app, and even in-store displays at physical Walmart locations. It is offered through Walmart Connect, Walmart's retail media platform. 

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Walmart advertising operates on a PPC (pay-per-click) model and sellers bid on keywords related to their products. There are no setup fees or monthly subscription costs to advertise on Walmart. 

Sponsored Products, Sponsored Brands, Display ads, and Video ads are some types of Walmart advertising. We will look at these types of Walmart ads shortly. 

Walmart ad types

Walmart offers several types of advertising options, from sponsored product listings to branded ads and video ads. 

Sponsored Products Ads

Sponsored Products ads are the most common ad type on the Walmart marketplace. There are three subtypes:

Search In-Grid ads

These appear within search results on Walmart.com and the app. They typically have a "sponsored" label below the product image and can appear anywhere in the search results, regardless of organic ranking.

You can set both manual and automatic ad campaigns and set ad budgets for each keyword, allowing you to optimize your campaigns.

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To be eligible for Search In-Grid placements, products must meet certain criteria:

• Your products must be in stock
• Your product must rank higher than or equal to their organic search ranking
• Your product should be of the same category as the search query
• Your product must be of the same product type as at least one non-sponsored product in the top 20 results. 

Product Carousel ads

These ads can appear on search, category, and product pages. Unlike Search In-Grid ads, Carousel ads are not restricted by search terms, allowing for a broader reach.

Shoppers can scroll through the carousel to view multiple products related to their initial search. 

Each product in the carousel is clickable, taking shoppers directly to the product detail page. Product Carousel ads can be offered through both manual and automatic campaigns. 

Qualifying for Product Carousel ads is not as strict as Search In-Grid ads. However, your products must be in stock on Walmart.com and eligible to win the Buy Box. Also, the product doesn't necessarily need to be in the top 128 organic search results.

Buy Box Banner ads

These appear below the main Buy Box on relevant product detail pages. They're ideal for showcasing low-priced alternatives or complementary products. Each product in the Buy Box Banner is clickable, taking shoppers directly to the product detail page. Unlike Search In-Grid ads, which appear in search results, Buy Box Banners are specifically placed on product detail pages prominently below the main Buy Box. These ads appear at the end of the shopping journey, increasing conversion rates.

Sponsored Brand ads 

Sponsored Brand ads are a premium ad type designed to provide high visibility for your products and brand on search pages. It appears at the top of search results pages, featuring a brand logo, custom headline, and up to 4 product listings. 

Some key benefits of Walmart’s Sponsored Brand ads include:

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• You can increase your brand visibility and awareness.
• You can showcase multiple products in a single ad.
• Targeted reach to customers actively searching for similar products.
• Sponsored Brand ads can help drive conversions and sales, especially for new or seasonal products.

Eligibility criteria

• Should be based in the United States, Hong Kong, the United Kingdom, China, or a pre-approved seller in India.
• Should be a brand rights owner registered with the United States Patent and Trademark Office. 
• Should be onboarded to the Walmart Brand Portal, Walmart’s intellectual property management platform. 

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3. Walmart Sponsored Video ads

Walmart Sponsored Video ads are a premium ad type designed to improve the visibility of advertised items within search results. They are short, keyword-targeted video ads that promote a single item within relevant Search In-grid results. Shoppers can click anywhere on the video, and they will be redirected to the item page. It also includes a direct add-to-cart button. 

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Creative specifications:

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• Length: 5-30 seconds
• Must include closed captions if the video has spoken words

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Technical specifications:

• Aspect ratio: 16:9
• Dimensions: 1920 x 1080px to 3840 x 2160px
• File size: 500MB maximum
• Format: .MP4 or .MOV

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4. Walmart On-site Sponsored Display ads 

Walmart On-site Sponsored Display ads provide advertisers with multiple ways to engage customers throughout their shopping journey, from initial browsing to final purchase.

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Walmart offers several types of On-site Display ads:

• Homepage Feature: These premium placements appear on Walmart's homepage, allowing brands to put their message front and center.
• Category Takeover: This ad type helps advertisers own the ad share of voice in specific categories across search, browse, category, and item pages.
• Custom Brand Page: Brands can work with Walmart's Lightbox Creative team to create bespoke, tailored solutions for their campaigns.
• Brand Box: A sticky desktop display positioned below the Buy Box on item pages.
• Gallery: Horizontal units showcasing hero images, logos, headlines, sub-headlines, and "Shop now" CTAs.

• Marquee Unified Experience: Available across multiple pages, including homepage, search, browse, and item pages. 

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Why is Walmart Advertising important for sellers?

Walmart advertising is important for sellers on the Walmart marketplace for the following reasons: 

Increases product visibility

Walmart.com has millions of active shoppers. Without advertising, your products compete purely on organic ranking, which is increasingly difficult as the marketplace grows. Advertising puts your product in front of shoppers who might not have discovered it organically. 

Drives higher sales velocity

Higher sales velocity signals to Walmart's algorithm that your product is relevant and in demand. This improves your organic ranking over time, creating a compounding effect where paid visibility leads to more organic visibility. 

Supports new product launches

New listings have no sales history or reviews, which makes organic ranking difficult. Advertising is a critical tool for building momentum in the early days of a product launch. 

Builds brand awareness

Brand-level advertising formats like Sponsored Brands allow you to establish presence across Walmart.com and increase recognition among shoppers who may not immediately convert but are building familiarity with your brand. 

Lower competition and costs

Compared to Amazon, Walmart has less advertiser competition. This can mean lower bids for ad placements, more visibility for the same budget, and a higher return on investment (ROI). There are also no setup fees, so more of your budget goes straight into ad spend.

Omnichannel reach

Walmart combines its online marketplace with thousands of physical stores. Many customers use "Buy Online, Pick Up In-Store" (BOPIS), which creates more touchpoints for your products. Walmart reports hundreds of millions of weekly customer visits across its stores and websites.

Customer trust

Shoppers trust Walmart to deliver quality products at fair prices. That trust can translate into higher conversion rates for advertisers, because your brand is associated with Walmart's credibility.

First-party data and AI targeting

Walmart Connect uses Walmart's first-party shopper data, including purchase history and search behavior, along with AI tools to help you reach relevant audiences and fine-tune your campaigns.

Walmart vs Amazon Advertising: Key differences

If you're already advertising on Amazon, you'll find Walmart's platform similar in structure but different in several important ways: 

• Competition levels: Walmart's marketplace has fewer sellers than Amazon, which generally means lower CPCs (cost-per-click) for equivalent keywords. 
• Organic ranking signals: Walmart's algorithm places significant weight on price competitiveness and in-store availability, which Amazon's doesn't factor in. This affects how advertising interacts with your organic ranking. 
• Ad format maturity: Amazon's advertising platform is more mature and offers more targeting and reporting capabilities than Walmart Connect at this stage.
• Audience intent: Walmart shoppers tend to be more price-sensitive than Amazon shoppers on average, which affects bidding strategy and messaging. 

How to get started with Walmart Advertising

To run ads on Walmart, you need to be an approved Walmart Marketplace seller. Before you spend on ads, check that:

• Your seller account is in good standing, with no major policy violations or performance issues.
• Your product listings are live and buyable. Use Setup by Match for items already on Walmart, or Full Item Spec for original listings.
• Listings are not stuck in "processing" or missing key details like images or inventory. Until these issues are fixed, the Walmart Connect Ad Center stays locked.

Once approved, here's the basic setup: 

1. Access Walmart Connect through your Seller Center dashboard.
2. Set up billing and payment information.
3. Create your first campaign by selecting campaign type (Sponsored Products is the standard starting point), setting a budget and bid strategy, selecting products to advertise, and choosing automatic or manual targeting.
4. Monitor performance through the Campaign Manager dashboard. 

Review Walmart's suggested bid before you launch, and set your own amount if you prefer. Ads typically begin serving within a few hours.

How much does Walmart advertising cost?

Here's the cost structure for advertising on Walmart:

• No setup fees: There are no setup fees or monthly subscription costs. Your costs come from your actual ad spend.
• Cost model: Sponsored Products, Sponsored Brands, and Sponsored Videos are all sold on a cost-per-click basis, so you pay only when a shopper clicks your ad.
• Bids: What you pay per click depends on your bids and on how competitive your keywords are. Review Walmart's suggested bid in Campaign Manager before you launch.
• Starting budget: Walmart Connect recommends a daily budget of at least $100 for Sponsored Products to stay visible during peak shopping hours. Start lower if you need to, and expect it to take longer to collect enough data.

Give new campaigns enough time and clicks before you judge them, and judge return on ad spend against your own margins rather than a general benchmark.

You also want to use Walmart selling strategies to improve your organic rank alongside paid campaigns, so your listings, pricing, and fulfillment are ready to convert the traffic your ads bring in.

Tips for effective Walmart Advertising

Optimize your listings before advertising

Advertising drives traffic to your listing, but if the listing isn't optimized, traffic won't convert. Before investing in ads, make sure your product title is keyword-rich and accurate, images are high-quality (main image with white background, additional lifestyle images), bullet points clearly communicate key features and benefits, price is competitive, and you have at least some reviews. 

Start with automatic targeting

Automatic targeting lets Walmart determine which keywords and products to match your ad against. This is a valuable source of keyword data for new campaigns. Run automatic campaigns for 2-4 weeks to collect data, then use the search term report to identify your best performers and build manual campaigns around them. 

Win the Buy Box

On Walmart, winning the Buy Box is essential for advertising effectiveness. If you're not in the Buy Box, your ads may not serve. Price competitiveness and strong fulfillment metrics (in-stock rate, on-time delivery) are the primary drivers of Buy Box eligibility. 

Monitor and adjust bids regularly

Walmart's advertising environment is competitive and dynamic. Review campaign performance at least weekly and adjust bids based on what's converting. Increase bids on high-performing keywords and reduce or pause spending on keywords with high spend and low conversion. 

Set competitive bids and budgets

Begin with modest bids and budgets to gather performance data, then increase your investment in high-performing campaigns. Consider the time of day, seasonality, and competition when setting bids. You want to bid on high-intent, relevant keywords for your products.

Implement targeted advertising strategies

To maximize your reach and relevance, use Walmart's targeting options based on customer demographics, purchase history, and search behavior. Consider layering multiple targeting options for precise audience reach. Also, regularly review and adjust your targeting strategies based on performance data.

Leverage Walmart Fulfillment Services (WFS)

Understanding how Walmart Fulfillment Services affects your ad eligibility and Buy Box standing can give you a significant competitive advantage. Products fulfilled through WFS often benefit from faster shipping badges, improved delivery performance, and greater customer trust. These factors can increase your chances of winning the Buy Box and may improve the effectiveness of your advertising campaigns by boosting conversion rates.

Optimize for mobile

Most of your customers will be using their mobile phones to shop on the Walmart marketplace. You want to ensure the ad creative is optimized for smartphone screens. Test different ad formats to find what works best on mobile devices. Consider using Walmart's mobile-specific ad options when available.

Test different ad formats

Don't rely on one format. Start with Sponsored Products, then test Sponsored Brands and Sponsored Videos once you have data on what converts. Each format reaches shoppers at a different point in their journey.

Plan around seasonal retail moments

Plan campaigns and discounts around major retail moments like Black Friday, Cyber Monday, Back-to-School, and the holidays. Raise budgets ahead of these peaks, and make sure your inventory can keep up.

Stay up-to-date with Walmart's advertising platform

Walmart regularly updates its advertising platform. Attend Walmart's webinars and training sessions to stay informed about new features and best practices, and be ready to adapt as Walmart introduces new ad formats or capabilities.

Getting help with Walmart Advertising

Walmart Advertising can deliver strong results, but it requires ongoing attention and optimization. If you're new to the platform or want to scale more efficiently, working with a team that specializes in Walmart can accelerate your results significantly. 

At ePlaybooks, our Walmart advertising specialists manage campaigns end-to-end, from initial setup and keyword research to bid management and ongoing reporting. Our Walmart account management team also helps brands grow efficiently on Walmart with data-driven strategies tailored to the platform.