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For most growing US brands, Amazon Ads should get your first dollar if you already have sales history and reviews there, because its data and intent signals are deeper. Walmart Connect deserves the next tranche if you sell on Walmart Marketplace or have WFS inventory, where competition is thinner and CPCs are often lower. Fund the channel where you can measure profit, not the one with the bigger audience.
Four things to hold onto before you split a retail media budget:
- Amazon Ads wins on intent data, ad formats and scale — but CPCs are higher because competition is heavier.
- Walmart Connect usually costs less per click and faces fewer bidders, though volume is smaller.
- Neither platform is cheap if your listings are weak; ad spend amplifies whatever conversion rate you already have.
- Match the budget to inventory position: Walmart ads only pay off when the item is in stock and buyable.
- Judge both channels on profit after ad spend, not on ACoS or ROAS in isolation.
What is the difference between Walmart Connect and Amazon Ads?
Walmart Connect is Walmart's retail media network, selling sponsored placements on Walmart.com, the app and in-store screens. Amazon Ads is Amazon's advertising business, spanning Sponsored Products, Sponsored Brands, Sponsored Display and demand-side buying. Both let you target shoppers on a retailer's own search results, but Amazon's system is older, larger and richer in behavioral data.
That maturity gap matters more than any single feature. Amazon has years of search-term history, mature bid automation and a wider set of placements. Walmart Connect is catching up fast but still runs on a smaller shopper base with fewer advertisers competing for the same keywords.
If you sell on both marketplaces, you are not choosing a winner — you are sequencing. The real question is which platform gives you a readable cost per acquisition soonest, so you can reinvest with confidence.
Walmart Connect vs Amazon Ads: how do they compare side by side?
Amazon Ads generally delivers more volume at a higher cost per click, while Walmart Connect typically delivers less volume at a lower cost per click. The right pick depends on your category, your review count and whether your Walmart listings are already converting. Here is the practical comparison most sellers actually need.
| Factor | Amazon Ads | Walmart Connect |
|---|---|---|
| Audience size | Largest US marketplace audience | Smaller but growing shopper base |
| Typical CPC pressure | Higher; competitive categories get expensive | Generally lower; fewer bidders |
| Ad formats | Sponsored Products, Brands, Display, DSP | Sponsored Products, brand ads, display, in-store |
| Data depth | Deep search-term and purchase data | Improving; less historical depth |
| Best fit | Established listings with reviews | WFS items with stock and buy-box control |
| Learning curve | Steep at scale, well documented | Simpler structure, fewer levers |
Treat the CPC line as directional, not fixed. Rates move with season, category and bid strategy, so check current benchmarks in your own account before you commit a budget.
Where should a growing brand spend first?
Spend first where you already have proof of conversion. If a product has reviews, sales velocity and a healthy conversion rate on Amazon, Amazon Ads will compound that advantage. If the same product is listed on Walmart with WFS inventory and a working buy box, Walmart Connect often returns a cheaper first acquisition because fewer brands are bidding.
A simple sequencing rule works for most brands under a few million in revenue:
- Fix the listing before you advertise. Images, title, bullets, A+ content and price. Ads cannot rescue a page that does not convert.
- Start on the platform with existing sales. That is usually Amazon, because the algorithm already has data to work with.
- Add the second channel once the first is profitable. Not before. Two unprofitable campaigns are worse than one.
- Cap the test. Give Walmart Connect a fixed 30-60 day budget you can afford to lose, and judge it on profit, not impressions.
Techtwist Editorial Team, E-commerce Operations at Techtwist, notes that most budget mistakes come from spreading spend across channels before either one has a stable, profitable cost per order — the fix is sequencing, not more platforms.
How much should you budget for each platform?
There is no universal number, but a workable starting point is to fund Amazon Ads at a level that covers your top-selling SKUs plus one discovery campaign, then test Walmart Connect at roughly 15-25% of that budget. Illustrative arithmetic: if you spend $3,000 a month on Amazon Ads at a 25% ACoS, that is $750 in ad cost against $3,000 in ad-attributed sales; a $600 Walmart test at a 15% ACoS would need about $4,000 in attributed sales to justify scaling.
Those ratios are examples, not benchmarks. Your margin decides the ceiling. A brand with 60% gross margin can absorb a much higher acquisition cost than one at 25%.
Industry surveys suggest most marketplace advertisers still concentrate the majority of retail media budget on Amazon, which is exactly why Walmart Connect can be cheaper per click — less competition, less bid inflation.
What ad types should you run on each platform?
On Amazon, start with Sponsored Products on exact and phrase match for your proven keywords, then layer Sponsored Brands for defense and Sponsored Display for remarketing. On Walmart Connect, start with Sponsored Products on high-intent search terms and add brand ads once you have conversion data.
Resist the urge to launch every format at once. Each one needs its own budget to generate readable data, and small budgets spread thin produce noise, not insight.
If you would rather have someone run the structure and bidding for you, Techtwist manages PPC across Amazon and Walmart against profit targets rather than raw ROAS, and pairs it with marketplace management so listings and ads move together.
Which platform is better for small brands?
Small brands usually get traction faster on Walmart Connect, because the bid landscape is less crowded and a modest budget can buy meaningful share of voice. Amazon rewards scale and review depth, which small brands often lack early on.
That said, Walmart volume is smaller. A lower CPC on a platform with a tenth of the traffic may still produce fewer orders. Run the math on total orders, not click price.
Many sellers report that Walmart Connect performs best on items with strong ratings and fast shipping, since shoppers there are highly price- and delivery-sensitive. If your Walmart listing is thin on reviews, fix that first.
People Also Ask
Is Walmart Connect cheaper than Amazon Ads?
Usually yes, on a cost-per-click basis, because fewer advertisers compete for Walmart search terms. That does not automatically make it cheaper per sale — lower traffic can offset the CPC advantage. Compare cost per acquired order in your own account before drawing conclusions.
Can I run Walmart Connect without selling on Walmart Marketplace?
Walmart Connect is built around Walmart's own surfaces, so you generally need products sold on Walmart.com or through Walmart's marketplace to advertise there. Some display and in-store placements have different eligibility rules. Check Walmart Connect's current advertiser requirements before planning a budget.
Do I need separate creative for each platform?
Yes, at minimum separate copy and image testing. Amazon shoppers respond to different cues than Walmart shoppers, and the two platforms have different character limits and image specs. Reusing assets without adapting them usually costs you conversion rate.
If you want a second opinion on where your next ad dollar should go, Techtwist works with US brands and sellers on channel sequencing and ad structure — get in touch and we will look at your account data with you.
