"Six years later, that line has all but faded. Sponsored listings now routinely appear at the top of Walmart's search results, pushing organic products further down the page. It's a shift that mirrors the evolution of Amazon's marketplace, where paid placements have become a core part of the shopping experience and a crucial profit engine. Walmart has become an ad-selling machine in its own right, fueled by brands eager to buy visibility on the nation's second-largest e-commerce site."
"Take a recent Walmart.com search for "batteries." At the top of the page, two banner ads - one for Duracell, another for Rayovac - appear before any product listings. Scroll down, and about a quarter of the first-page results are sponsored placements from major battery brands, including Duracell and Energizer. The first organic listing from a non-advertising brand doesn't show up until the ninth slot."
Walmart shifted from refusing to sell top search slots in 2019 to routinely placing sponsored listings at the top of search results, reducing organic visibility. Sponsored placements now frequently appear above organic products, mirroring Amazon's paid-placement-driven marketplace. Advertising generated $4.4 billion in global ad revenue for Walmart in 2024, up 27% year-over-year. Advertising had grown to make up almost a third of Walmart's overall operating income. Brands are increasingly buying visibility on Walmart.com, making advertising one of Walmart's fastest-growing businesses alongside e-commerce. Sample searches show categories like batteries with multiple banner ads and roughly a quarter of first-page slots occupied by sponsors, with the first organic result often appearing only in the ninth position.
Read at Digiday
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