You should use Walmart Connect if you’re investing in a new ad strategy or expanding an existing one.
If you’re starting an ecommerce company, you may think selling on Amazon is your best bet. After all, they’re dominating the online retail space. But don’t underestimate Walmart, especially if you’re an American seller.
They have a robust website and offer many of the same benefits as Amazon, such as same-day delivery. Plus, Walmart provides more sales opportunities, less competition, and a devoted customer base.
Thanks to programs like Walmart Connect, Walmart’s potential is improving in other ways. If you plan on investing in advertising or increasing your ad budgets, expanding to Walmart Connect is a smart move.
What is Walmart Connect?
What Is Walmart Connect?
Walmart Connect is the retail giant’s media program. This is a rebranded program that they launched in 2021, allowing Walmart to offer more targeted advertising services to sellers.
With Walmart Connect, third-party sellers can reach more customers on the Walmart website, app, affiliate sites, and even in physical stores.
There are many reasons why selling on Walmart is a smart move. 90% of Americans live within 10 miles of a Walmart store, and in-store advertising improves brand awareness. Plus, the multichannel advertising opportunities will help sellers attract more customers online.
Walmart Connect Advertising Types
What makes Walmart Connect unique is the numerous ad types it offers on its website, app, and even physical stores. Here are Walmart Connect’s ad types:
Display Ads
Walmart offers different display ad types, such as:
- Homepage Feature. Customers see your brand on the Walmart website or app.
- Category Takeover Ads. Advertising your products on category pages and SERPs.
- Custom Brand Pages. Educate shoppers about your brand and products.
Sponsored Search
These ads appear in Walmart search results and are triggered by keywords. When sellers invest in different keywords, their ads appear when customers search for that term. There are various types of sponsored search ads:
- Sponsored Brands. Your ads appear when customers shop for branded search terms, such as your name or similar stores.
- Sponsored Products. Individual product ads appear in the corresponding search results. Examples of keywords include product search terms or similar phrases. Sponsored products can appear as a product carousel, in the search grid, or the Walmart Buy Box.
- Sponsored Videos. Instead of a product listing appearing in the search grid, a Sponsored Video can appear in this spot.
In-Store Ads
Walmart also stands out with in-store display ads. That means Walmart can display your ads on self-checkout screens, TV monitors, in-store audio, product demos, and trial samples. Walmart has over 10,000 stores in 19 countries, so this can increase brand visibility with in-store customers.
Benefits of Walmart Connect Ads
The main benefit of investing in Walmart Connect is diversification. Walmart owns stores nationwide, and its website boasts 551.46 million in traffic. And in March 2024, the Walmart app had 1.6 million downloads. This means sellers will target Walmart shoppers online and in-store.
Walmart Connect will also become more targeted, thanks to AI and automation. The retail giant is investing heavily in AR, VR, and gen AI to improve the shopping experience. This results in more personalized shopping experiences and helps sellers engage their target audience better.
Amazon Ads vs Walmart Connect
If you’re new to ecommerce ads or debating expanding to Walmart Connect, you may wonder how Amazon advertising compares to Walmart. Here are a few ways they differ.
- Fees. Both platforms run on a PPC (pay-per-click) model, but Amazon ads come within setup fees. Walmart doesn’t have this extra cost, so that you can boost your ad spend. Bidding costs are also typically lower on Walmart than on Amazon.
- Competition. Fewer private label brands advertise on Walmart than Amazon, giving advertisers more visibility. With lower visibility, brands can experience better click-through rates and return on ad spend with a lower cost-per-click.
- Sales channels. Walmart has an extensive affiliate network comprising various websites that partner with the retail giant. Sellers can also expand their presence on multiple websites and get more exposure for their advertising dollars.
- Physical locations. Walmart has physical locations that can show your ads. Amazon is an online-only business, so that advertisers may miss out on a massive consumer market.
- Sales events. Both Walmart and Amazon have several sales events. Amazon is famous for Prime Day, but brands can use Walmart Deal Days to gain more exposure.
Strategies to Get the Most Out of Walmart Connect
Investing in Walmart Connect is a smart strategy, but there are ways to gain shoppers’ attention with this program. Here are some strategies to gain more visibility on Walmart Connect.
Competitor Research
Even though Walmart is less competitive than Amazon, there are still 150,000 third-party sellers on Walmart.
Research your closest competitors on Walmart and gauge their product ads, keywords, and the results they achieve. Find any gaps in their campaign that you can profit from.
Start Small
Always start any advertising strategy with a small budget, especially your Walmart Connect campaign. This way, you can test out your tactics and keyword bids without losing significant money.
You can invest more in your ad budget as you refine your strategy. For best results, use automated advertising tools that manage your budget and optimize ad spend to the best-performing keywords.
Test Ads
Another way to gather advertising data is by testing your ad performance. Many advertising tools allow A/B testing.
With this strategy, you’re testing different ad copy, creatives, and more. From here, you compare different metrics, such as conversion and engagement rates, to see which ads perform better.
Keyword Research
No advertiser should blindly invest in keywords since you risk overspending on search terms that offer no results. Find keywords with the best traffic, low competition, and a CPC with the best return.
In addition, the keywords you bid on should be relevant to your brand and products and should be ones your customers are searching for. Advertisers can use free keyword tools to find this information.
Implement Automation
Since Walmart Connect invests in AI and automation, all advertisers should use these technologies.
Walmart’s automation features can streamline advertising efforts, saving time and money. Some of the ways in which the automation features work is by automatically adjusting budgets or informing a Walmart business of new sales opportunities.
This feature will also notify brands if they’re not achieving their ROAS or have met their daily budget, and advertisers can make necessary changes to their campaigns.
Understand Shopper Behavior
Walmart attracts a different type of consumer compared to Amazon and other retail stores. For example, 57% of Walmart customers do their grocery shopping at the retail giant.
We all know Walmart sells more products than just groceries, and because of this, they have always been a massive opportunity for third-party sellers. While Walmart was notorious for attracting low-income households, the average consumer is changing.
For example, Walmart attracts two consumers in their physical and online stores. The average Walmart in-store customer is a senior woman living in the suburbs, while online consumers are typically Gen Zers and millennials who subscribe to Walmart Plus.
Understanding your target audience and Walmart’s shoppers will help you choose the best products to advertise, ensuring you make your ROI.
Use Frequency Caps
Frequency caps control the amount of times Walmart displays your ads. While this may seem like it will hurt your campaign, frequency caps are very beneficial.
Over-advertising and marketing can turn away potential customers. Adopting frequency caps ensures you aren’t advertising to users who never interacted with your ads, ensuring you reduce costs and improve your ad return.
Need Help With Walmart Connect?
Walmart Connect is an advertising platform where brands can gain visibility on Walmart’s website, app, and physical stores. They relaunched this media program in 2021 and continue investing in AI and automation to improve the performance of their advertising.
Walmart Connect differs from Amazon ads in many ways and may be a more practical option for specific brands. But if neither platform was effective for you, it may be time to call in the experts.
Our Accelerator Program includes competitor research, creatives, and optimized listings. We conduct A/B testing and set goals to ensure you don’t waste ad dollars.
Author
Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
