Are you wondering about the difference between Amazon advertising vs Walmart advertising? Look no further—we’ll break down the key differences between the two to help you determine which is best for your business.
Amazon is one of the largest e-commerce platforms, giving sellers powerful tools to market their products. However, Walmart has been expanding its online marketplace, allowing third-party sellers to tap into its customer base.
As such, many Amazon sellers are now expanding their businesses by selling on Walmart as well. Even though both platforms offer similar advertising options, they have key differences that impact how sellers approach their ad strategies.
Understanding these differences is crucial for determining which platform aligns best with your goals. That’s why our Amazon agency made this post to help you compare Amazon and Walmart advertising so you can make an informed decision.
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Amazon Advertising: What Sellers Need to Know
There are millions of product listings on Amazon, making it difficult for sellers to stand out. Fortunately, Amazon offers advertising solutions to help improve visibility and drive sales.
Amazon advertising is a PPC system that allows sellers to promote their products across the platform. It boosts product visibility by displaying sponsored ads to shoppers searching for relevant items.
By using Amazon Ads strategically, sellers can reach their target audience more effectively. This helps improve organic ranking over time, as increased traffic and sales signal to Amazon’s algorithm that a product is in demand.
How Amazon Advertising Works
Amazon advertising is easy to use, making it accessible for both newbies and experienced sellers. You just need to log into your Seller Central account, go to Campaign Manager, and create a campaign by selecting your ad type and entering the necessary details.
Once your campaign is set up, your ad will be displayed in relevant locations based on your targeting settings. When a shopper clicks on your ad, you pay a fee, making it a cost-effective way to attract interested customers.
Different Types of Amazon Ads
There are several ad formats available on Amazon that sellers can use to promote their products. Each ad type serves a different purpose, allowing sellers to choose the best option based on their goals.
1. Sponsored Products Ads
These ads promote individual products and appear in search results and on product detail pages. They help sellers increase visibility and drive direct sales by targeting relevant keywords and customer searches.
2. Sponsored Brands Ads
Sponsored Brands Ads feature a brand logo, custom headline, and multiple products from a seller’s catalog. They appear at the top of search results, making them ideal for increasing brand awareness.
3. Sponsored Display Ads
These ads extend beyond Amazon, appearing on external websites and apps visited by potential customers. They help sellers retarget shoppers and keep their brand visible even outside the Amazon marketplace.
Pros and Cons of Amazon Advertising
Amazon Ads has its advantages and drawbacks. By evaluating these factors, you can determine if it aligns with your selling strategy.
Pros of Amazon Advertising
- Amazon’s massive traffic allows sellers to reach more potential customers through Amazon ads.
- Sponsored Brand Ads help sellers build a recognizable brand presence.
- Amazon offers different ad formats to target customers at various stages of their buying journey.
Cons of Amazon Advertising
- Competing against other sellers, including Amazon’s own products, can drive up ad costs.
- High competition for popular keywords leads to expensive bidding wars that can strain ad budgets.
- Success requires constant monitoring, bid adjustments, and campaign refinements to achieve a strong ROI.
Walmart Advertising: What Sellers Need to Know
Like Amazon, Walmart provides advertising solutions to help sellers gain more visibility. While Walmart may have fewer sellers, competition is still tough, making ads a useful tool for driving traffic to your listings.
Walmart advertising operates on a pay-per-click model, where sellers only pay when shoppers click on their ads. These ads appear both within the Walmart marketplace and across external platforms, helping sellers reach a broader audience.
How Walmart Advertising Works
Setting up Walmart advertising is simple once you’re approved. Sellers can log into the Walmart Connect Ad Center, create a campaign, choose between automatic or manual targeting, and set their budget and bid strategy.
After selecting their targeting method, sellers assign products to ad groups and finalize campaign settings. Once launched, the ads will appear in relevant placements, helping increase product visibility and drive sales on Walmart Marketplace.
Different Types of Walmart Ads
Walmart offers different types of ads for sellers to promote their products, though the selection is more limited compared to Amazon. Each ad type serves a specific purpose, helping sellers improve visibility and drive sales on the Walmart marketplace.
1. Sponsored Products
These ads promote individual products that meet eligibility requirements, such as being in stock, winning the Buy Box, and being published on Walmart.com. Sponsored Products appear in search results and relevant product pages, increasing exposure to potential buyers.
2. Sponsored Brands and Sponsored Videos
Available only to brand owners, these ads showcase multiple products or branded content to boost brand awareness. To qualify, sellers must be registered with the Walmart Brand Portal and hold trademark rights with the U.S. Patent and Trademark Office.
Pros and Cons of Walmart Advertising
Walmart advertising offers several advantages for sellers, but it also comes with certain challenges. Understanding both the benefits and drawbacks can help sellers decide whether it’s the right fit for their business.
Pros of Walmart Advertising
- Walmart’s combination of in-store traffic and online ads boosts product visibility.
- Ads can appear on Walmart.com and partner networks, expanding reach.
- Walmart does not heavily promote its private-label products over third-party sellers.
Cons of Walmart Advertising
- Walmart’s first-price auction model can lead to higher ad costs, so it’s easier for sellers to overspend on clicks.
- Walmart does not allow product attribute targeting, restricting advertisers to keyword-based campaigns.
- Walmart’s online marketplace is less established, making advertising more challenging.
Amazon Advertising vs Walmart Advertising: Key Differences
Although Amazon and Walmart may seem similar, their advertising platforms have key differences that can impact your success as a seller. Understanding these differences can help you decide which platform aligns better with your business goals.
| Feature | Amazon Advertising | Walmart Advertising |
|---|---|---|
|
Traffic & Visibility |
Higher traffic, increasing ad exposure and potential sales. |
Lower traffic but benefits from in-store exposure. |
|
Bidding System |
Uses a second-price auction, where the winning bid pays $0.01 more than the second-highest bid. |
Uses a first-price auction, requiring sellers to pay the full bid amount. |
|
Cost-Per-Click |
Generally higher due to strong competition and bidding wars. |
Tends to be lower because of a more conservative bidding approach. |
|
Targeting Options |
Allows keyword, product, and category targeting, enabling refined ad strategies. |
Limited to keyword-based targeting, restricting campaign flexibility. |
|
Ad Placements |
Ads appear in search results, product detail pages, and banners. |
Fewer ad placements, primarily within search results. |
|
Seller Competition |
Competes directly with third-party sellers by promoting Amazon’s private-label products. |
Does not push Walmart-branded products as aggressively against third-party sellers. |
|
Data & Analytics |
Provides basic advertising data but lacks transparency in key metrics. |
Offers more detailed analytics for ad performance insights. |
Which Platform Is Best for You? Amazon vs Walmart
Want to know whether Amazon advertising or Walmart advertising is the better fit for your business? Take this quick quiz from our Amazon agency to find out!
Amazon Advertising vs Walmart Advertising FAQs
Choosing Between Amazon and Walmart
Amazon and Walmart each offer advertising solutions that help sellers increase visibility and drive sales. Both platforms share similarities, but they also have key differences that sellers should understand to determine which one aligns best with their business goals.
Each advertising platform has its own pros and cons, influencing how sellers approach their strategies. Through this article, we hope to have provided valuable insights to help you make an informed decision about where to invest your advertising efforts.
Need help optimizing your Amazon or Walmart advertising strategy? Reach out to our full-service Amazon agency and let our experts guide you to maximize your ad performance and grow your sales.
