ROAS is higher than Amazon! Walmart ads may be more attractive?

Sponsored product ads on Walmart.com had a higher return on investment (ROAS) than similar ads on Amazon in the second quarter of this year, according to analysis from Pacvue and Helium10.

This is largely due to two key updates to Walmart's Retail Media Network: enhanced search relevance and a shift to a second-price auction model.

Walmart has increased the reach and relevance of sponsored listings by considering factors such as customer intent, relevance, and historical performance when determining ad placement. As part of this update, Walmart has expanded ad placements to give brands more opportunities to reach consumers.

Walmart's second-price auction model determines who wins the ad by weighing ad relevance and bid price. The winner pays the lowest fee required for the second-highest bid, which helps reduce the cost per click (CPC).

As a result of these changes, Walmart’s ROAS increased 82.95% year-over-year in the second quarter. CPCs decreased 23.08% compared to the previous quarter, while CTR increased 43.33%.

Looking ahead, Amazon remains the dominant player in U.S. retail media. The latest data shows that the company's share of retail media ad spending is 77%, while Walmart is 6.2%. But it is clear that other retail media networks are providing advertisers with just as much or more value.

That’s especially true during this holiday season, as promotions drive more traffic to Amazon and Walmart’s websites, giving advertisers the opportunity to reach a larger, highly engaged audience.

Editor✎ Ashley/

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