Ad sales from marketplace sellers surged nearly 50% in fiscal Q2, as Walmart emphasized expanding its in-store and offsite advertising offerings. Walmart Connect, the retailer’s U.S. advertising division, saw a 30% year-over-year revenue increase in fiscal Q2 2025, as reported in an earnings statement. The global advertising business, including India-based Flipkart, grew by 26% over the same period. Although Walmart does not disclose specific advertising revenue figures, it has revealed that the business generates billions annually.
Marketplace sellers, including smaller and emerging brands that sell through Walmart, significantly contributed to this growth. Walmart CEO Doug McMillon highlighted this during a call with investors, noting that ad sales from this category rose nearly 50%. McMillon also mentioned in a statement accompanying the earnings report that newer businesses like marketplace, advertising, and membership are diversifying profits and enhancing the resilience of Walmart’s business model.
This year, Walmart Connect has been focused on increasing the variety of media options available to its advertising partners, with in-store and offsite channels being key priorities. More ads are now visible on self-checkout lane screens, in TV aisles, at sampling stations, and over Walmart’s store radios as the company seeks to better monetize its substantial brick-and-mortar presence. Offsite, Walmart Connect has partnered with publishers like Disney to leverage its first-party shopper data for more targeted and measurable ads on connected TV. Additionally, Walmart’s acquisition of smart TV maker Vizio for $2.3 billion earlier this year has bolstered its capabilities in the video advertising space.
Walmart’s e-commerce business also experienced solid growth in Q2, which likely contributed to an increase in onsite advertising—campaigns running on Walmart-owned properties. According to third-party analysis, Walmart leads among retail media networks in generating onsite advertising impressions. Global e-commerce sales, which are reported separately, increased by 21% year-over-year, making a significant contribution to the overall results, as noted by CFO John David Rainey during the investor call.
Overall, the earnings report exceeded Wall Street expectations, with Walmart raising its outlook for the full year. U.S. comparable sales grew by 4.2%, while consolidated revenues increased by 4.8% to $169.3 billion. Advertising and membership growth together accounted for over 50% of operating income growth for the quarter, according to Rainey.