How to Use Walmart Ads to Outperform Your Competition in 2025

Introduction

As eCommerce continues to evolve, Walmart has solidified itself as a major player in the digital advertising landscape. With millions of shoppers visiting Walmart's website and app daily, businesses have a golden opportunity to reach highly targeted audiences through Walmart Ads. Whether you're a small business looking to gain traction or a major brand aiming to optimize your ad spend, leveraging Walmart Ads strategically can give you a competitive edge in 2025.

In this guide, we'll explore how to use Walmart Ads effectively to outperform your competition, increase sales, and grow your brand presence on one of the world's largest retail platforms. Managing ad spend is just one piece of the puzzle. To ensure long-term profitability, eCommerce sellers must also optimize their financial operations, especially when selling across multiple platforms. If you also sell on Amazon, it’s crucial to track financial discrepancies and recover lost revenue. Using Amazon seller reconciliation services can help sellers identify missing payments, incorrect fees, and reimbursement opportunities, allowing you to reinvest those recovered funds into your Walmart Ads strategy.

Why Walmart Ads Matter in 2025

Walmart’s advertising ecosystem has significantly evolved, making it a prime channel for businesses to reach high-intent shoppers. Here’s why investing in Walmart Ads in 2025 is crucial:

  • Growing Online Presence: Walmart’s eCommerce growth continues to rival Amazon, with more consumers shopping online than ever.
  • High Purchase Intent: Unlike social media ads, Walmart Ads target customers actively searching for products, increasing conversion rates.
  • Lower Advertising Costs: Compared to platforms like Amazon and Google, Walmart Ads can offer better ROI due to less competition and lower CPCs (cost-per-click).
  • Robust Advertising Features: Walmart has expanded its advertising options, including Sponsored Products, Sponsored Brands, and Display Ads, allowing advertisers to build custom campaigns tailored to their goals.

Understanding and mastering these features can put you ahead of competitors who are still struggling with Walmart’s ad system.

How to Use Walmart Ads to Outperform Your Competition

1. Optimize Your Product Listings for Better Ad Performance

Before running any Walmart Ads, ensure your product listings are optimized. Walmart’s algorithm prioritizes well-structured listings with relevant keywords, high-quality images, and strong descriptions.

Key Steps:

  • Use Relevant Keywords: Research and include high-volume search terms in your product title, bullet points, and descriptions.
  • Enhance Product Images: Use high-resolution images and lifestyle photos to make your listing visually appealing.
  • Improve Product Descriptions: Clearly highlight features, benefits, and differentiators to convince shoppers to purchase.
  • Encourage Positive Reviews: Higher ratings boost ad placement and conversion rates.

💡 Pro Tip: Use Walmart’s built-in keyword research tools to identify trending search terms for your niche. While Walmart Ads can significantly boost your brand’s visibility, expanding across multiple marketplaces can further strengthen your competitive edge. Many successful sellers diversify their sales channels to avoid over-reliance on a single platform. If you are also selling on eBay, optimizing your product listings is crucial to staying ahead of competitors. Professional eBay listing services can help enhance product visibility, improve keyword targeting, and create optimized descriptions that drive more conversions. By ensuring your eBay store is well-managed alongside Walmart, you can maximize your sales potential across multiple platforms.

2. Choose the Right Walmart Ad Format

Walmart offers several ad types, and selecting the right one is crucial for success.

a. Sponsored Products (Search Ads)

These ads appear in Walmart’s search results and product pages, driving traffic to specific listings. Best for:
✅ Boosting product visibility
✅ Driving conversions for high-demand products
✅ Beating competitors in search results

b. Sponsored Brands (Brand Amplifier Ads)

These ads showcase your brand logo, multiple products, and a custom headline at the top of search results. Best for:
✅ Building brand awareness
✅ Promoting multiple products in one campaign
✅ Outranking competitors in branded searches

c. Walmart Display Ads

These banner ads appear across Walmart’s website, app, and external networks. Best for:
✅ Retargeting shoppers who viewed your products but didn’t purchase
✅ Expanding brand reach beyond Walmart.com
✅ Capturing new customers through lifestyle-based targeting

By understanding which ad format aligns with your business goals, you can create campaigns that drive maximum results.

3. Master Walmart’s Bidding Strategies

Walmart Ads operate on an auction-based system, meaning you compete for placements based on bids. Choosing the right bidding strategy is essential for maximizing ad efficiency.Walmart’s advertising platform is constantly evolving, and keeping up with the latest strategies can be challenging. Partnering with experienced eCommerce marketing professionals can help you optimize ad spend, improve campaign performance, and outshine competitors. The Walmart Advertising Strategy by SpectrumBPO provides sellers with expert guidance on campaign structuring, keyword optimization, and performance analysis to drive better results on Walmart's marketplace.

Best Bidding Strategies for 2025:

  • Rule-Based Bidding: Set bid limits for different scenarios (e.g., increase bids for high-converting keywords).
  • Performance-Based Bidding: Adjust bids based on past performance data (e.g., increase bids on high-ROI products).
  • Walmart’s Automated Bidding: Let Walmart’s algorithm optimize bids based on sales and engagement data.

💡 Pro Tip: Use a mix of manual and automated bidding to balance control and efficiency.

4. Leverage Retargeting & Audience Targeting

Retargeting is one of the most effective strategies for outperforming competitors in 2025. Walmart allows you to target:

  • Shoppers who viewed your products but didn’t buy
  • Customers who bought similar products from competitors
  • High-intent audiences based on browsing behavior

Using Walmart’s Lookalike Audiences feature, you can also reach new customers similar to your best-performing buyers.

💡 Pro Tip: Combine retargeting with display ads for a powerful full-funnel marketing approach.

5. Analyze & Optimize Campaign Performance

Running Walmart Ads without monitoring results is a waste of budget. Regularly analyze your campaign performance to improve ROI.

Key Metrics to Track:

  • Impressions & Click-Through Rate (CTR): Measure how often your ads are seen and clicked.
  • Conversion Rate: Track how many clicks lead to actual purchases.
  • Return on Ad Spend (ROAS): Calculate profitability by dividing revenue by ad spend.
  • Cost-Per-Click (CPC) & Cost-Per-Acquisition (CPA): Ensure your costs remain competitive.

Use Walmart Connect’s Analytics tools to identify underperforming ads and make data-driven adjustments.

💡 Pro Tip: A/B test different ad creatives, headlines, and targeting options to find what works best.

Conclusion

In 2025, Walmart Ads offer a powerful opportunity to outperform your competition and capture high-intent shoppers at a lower cost than Amazon or Google Ads. By optimizing your product listings, selecting the right ad formats, using smart bidding strategies, leveraging retargeting, and continuously refining your campaigns, you can drive consistent sales growth on Walmart’s platform.