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Walmart Connect is strategically broadening its programmatic advertising capabilities by forging new partnerships with Yahoo DSP and Magnite, signaling a significant evolution in its retail media network strategy. This move follows the expiration of Walmart’s exclusive four-year agreement with The Trade Desk last fall and underscores a growing industry trend prioritizing Connected TV (CTV) ad inventory and offsite media opportunities. The expanded collaborations aim to provide advertisers with enhanced access to Walmart’s extensive first-party audience data and robust measurement solutions, extending their reach beyond Walmart’s owned digital properties.
A Strategic Shift Beyond Exclusivity
The termination of Walmart’s exclusive deal with The Trade Desk, which began in 2021 to power its standalone demand-side platform (DSP), has paved the way for a more diversified approach. This new chapter for Walmart Connect involves integrating with multiple technology providers, allowing for greater flexibility and broader advertiser engagement. By partnering with Yahoo DSP and Magnite, Walmart Connect is positioning itself to meet advertisers where they are, leveraging established programmatic buying environments to deliver its unique data insights and measurement capabilities.
The decision to expand partnerships reflects a broader industry movement within retail media. Companies like Dollar General, Home Depot, and Albertsons are increasingly focusing on providing advertisers with full-funnel capabilities, bridging the gap between online and offline sales and offering more comprehensive advertising solutions. This strategic pivot by Walmart Connect is designed to capitalize on the burgeoning offsite retail media market, which is projected to reach significant milestones in the coming years.
Deepening CTV Investment and Audience Reach
A key component of Walmart Connect’s expanded strategy is its intensified focus on Connected TV (CTV) inventory. This emphasis is strategically aligned with Walmart’s landmark $2.3 billion acquisition of Vizio, a prominent CTV device manufacturer, in 2024. The Vizio acquisition was a clear indicator of Walmart’s ambition to establish a strong presence in the increasingly valuable CTV and streaming landscape. By integrating Vizio’s reach and data, Walmart aims to offer advertisers unparalleled opportunities to connect with audiences across a multitude of streaming services and connected devices.
The partnership with Magnite, a leading supply-side platform (SSP), is particularly crucial for unlocking CTV’s potential. Magnite’s technology is designed to facilitate audience decisioning across various DSPs, enabling advertisers to leverage Walmart’s data more effectively within the programmatic ecosystem. This integration is expected to enhance targeting precision and campaign performance, allowing advertisers to reach specific consumer segments with greater accuracy.
Furthermore, the collaboration with Magnite promises to provide advertisers with access to Walmart’s closed-loop measurement capabilities. This feature is vital for demonstrating the direct impact of advertising on sales outcomes, a critical requirement for advertisers seeking to justify their media spend. Early results from offsite display campaigns facilitated by Walmart Connect in 2025 demonstrated a median of 52% new-to-brand customers for participating advertisers, highlighting the effectiveness of its data-driven approach.
Building on Existing Success and Future Outlook
While expanding its offsite reach, Walmart Connect is also committed to optimizing its existing programmatic infrastructure. The recent launch of Connect Select, a curated marketplace for omnichannel inventory with a specific focus on CTV, exemplifies this ongoing commitment. Connect Select aims to simplify the process for advertisers seeking relevant inventory, further streamlining access to Walmart’s advertising solutions.
The financial performance of Walmart Connect underscores the growing success of its advertising business. During the retailer’s fiscal 2027 first quarter, Walmart Connect, excluding revenue from Vizio, reported a substantial 44% year-over-year increase in revenue. This growth trajectory indicates strong advertiser demand and the effectiveness of Walmart’s retail media offerings. The company’s broader global advertising business also experienced a significant 37% revenue increase during the same period, reflecting the overall strength and expansion of its advertising division.
Industry Context and Market Dynamics
The expansion of retail media networks into offsite channels is a defining trend of the current advertising landscape. As consumer behavior shifts towards more fragmented media consumption, retailers are leveraging their unique first-party data to create powerful advertising platforms that offer a more holistic view of the customer journey. Offsite retail media advertising in the U.S. is projected to exceed $17 billion in 2026, representing a robust 29.5% year-over-year growth, according to EMarketer. This forecast highlights the immense opportunity and increasing advertiser investment in this sector.
Walmart’s strategic moves are not isolated; they reflect a competitive environment where retailers are vying to capture a larger share of the digital advertising market. By offering sophisticated programmatic solutions and deep audience insights, Walmart Connect is positioning itself as a formidable player, capable of delivering measurable results for brands looking to connect with consumers at various stages of the purchase funnel. The emphasis on CTV, in particular, taps into a rapidly growing segment of digital media consumption, offering a more engaging and immersive advertising experience.
Analysis of Implications
Walmart Connect’s strategic pivot towards multi-DSP partnerships and a strong emphasis on CTV signifies a mature evolution of its retail media offering. The move away from a singular exclusive partnership suggests a recognition that a more flexible and integrated approach is necessary to compete effectively in the dynamic programmatic advertising space. By aligning with established players like Yahoo DSP and Magnite, Walmart is not only expanding its reach but also leveraging their technological expertise and market presence.
The integration of Vizio’s CTV capabilities further solidifies Walmart’s commitment to becoming a dominant force in connected TV advertising. This acquisition provides Walmart with a direct pathway to a massive audience of streaming viewers, enabling them to offer advertisers sophisticated targeting and measurement solutions previously unavailable. The ability to connect media exposure directly to sales outcomes, through Walmart’s closed-loop measurement, is a critical differentiator that addresses a core advertiser need.
The impressive revenue growth reported by Walmart Connect, even before the full integration of Vizio’s contributions, speaks to the inherent value of its first-party data and its growing appeal to advertisers. As more retailers embrace offsite advertising strategies, Walmart’s proactive expansion and focus on advanced programmatic capabilities position it favorably to capture a significant share of the projected growth in this market. The company’s continued investment in curated inventory marketplaces like Connect Select also indicates a dedication to simplifying the advertising process, making its platform more accessible and user-friendly for a wider range of advertisers. Ultimately, these strategic decisions are poised to enhance Walmart’s position as a leading retail media network, offering advertisers a powerful and integrated approach to reaching consumers across multiple touchpoints.
