The deal, Walmart’s largest ad investment since Vizio, aims to draw more small and mid-sized advertisers into CTV.
Walmart last week announced plans to acquire Vibe.co, a connected TV ad platform designed for small- and mid-sized businesses and mid-market brands. The deal, reportedly for $1.2 billion in cash, is the retailer’s latest move to build out its ad business and its largest investment in the space since buying smart TV maker Vizio for $2.3 billion in 2024.
The deal reflects Walmart’s need to keep growing its ad business as it chases Amazon, a company with a more mature ad operation that generates roughly ten times as much ad revenue per year.
“This is good news because it lowers the barrier to entry for CTV, particularly for small and mid-sized businesses that may have found TV advertising too complex in the past,” Martin Kristiseter, CEO at Digital Remedy, wrote in emailed comments. “The conversation is shifting from ‘Should I invest in CTV?’ to ‘How do I make sure I still have clear measurement and access to my data as these platforms continue to evolve?'”
The addition of Vibe.co will help the retailer bring more advertisers into its ad ecosystem, which promises closed-loop measurement and retail outcomes. The deal unites Walmart’s deterministic purchase data with Vibe’s probabilistic cross-device identity graph, further connecting exposure and outcomes, according to Jesse Math, vice president of strategic partnerships at Keen Decision Systems.
“Together, the promise is a more complete picture of omnichannel ROI, one that captures how spend within Walmart creates halo on direct channels, and how spend outside of Walmart feeds velocity back into Walmart,” Math said in emailed comments.
The growth of Walmart Connect, in both capabilities and overall ad spend, makes the retailer’s pitch stronger but complicates decisions for marketers grappling with an already fragmented market.
“What’s the right amount to spend with Walmart versus Amazon versus Kroger? What’s the right balance between retail media and Google Search and Meta? What’s the right split between on-platform Walmart investment and off-platform?” Math said.
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Connecting with CTV
The acquisition, which is subject to customary closing conditions, comes as Walmart continues to see momentum in its advertising business, with 36% growth in the U.S. in the first quarter of fiscal 2027, spurred by engagement with marketplace sellers, who grew ad spend by over 50% and saw a corresponding lift in sales. Walmart Connect, the company’s retail media arm, saw a 44% increase, excluding Vizio.
