Walmart’s acquisition of Vizio signals a bold move in the race for dominance in retail media and connected TV advertising.
In a groundbreaking $2.3 billion cash deal, Walmart has finalised its acquisition of smart TV maker Vizio, cementing its position in the rapidly evolving landscape of retail media networks. The deal, officially closed on 3rd December 2024, marks a strategic shift for Walmart Connect, the retailer’s advertising arm, as it enters the lucrative realm of connected TV (CTV) and streaming.
A Bold Step to Outpace Competitors
Walmart’s move to purchase Vizio is not just about hardware; it’s a calculated leap into the future of advertising. Vizio brings to the table a robust advertising arm, cutting-edge technology solutions, and a well-established network of over 500 direct brand relationships. This acquisition offers Walmart the scale and tools needed to compete against Amazon, the retail media leader known for its Fire TV and vast e-commerce ecosystem.
Vizio’s SmartCast system, a built-in operating platform on its smart TVs, provides free content with advertisements. With over 18 million active accounts, this feature is a goldmine for Walmart Connect, allowing brands to reach consumers in their living rooms through premium video advertising. Vizio’s Platform Plus division, which primarily focuses on advertising, contributes significantly to the company’s profitability.
Scott Olson, Walmart’s Executive Vice President and Chief Revenue Officer, described the acquisition as a pivotal moment:
“Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses will redefine the intersection of retail and entertainment.”
The CTV Opportunity: Why Walmart is Betting Big
The retail media industry has traditionally relied on lower-funnel advertising formats like sponsored search and display ads. However, connected TV is emerging as a critical frontier, offering opportunities for top-of-funnel brand-building campaigns that resonate with modern consumers.
eMarketer forecasts that U.S. revenues from CTV advertising will grow by 22.4% in 2024 to reach $30.1 billion, signalling the potential for massive returns on Walmart’s investment. By integrating Vizio’s capabilities, Walmart can develop premium advertising options, appealing to brands that seek more engaging ways to connect with audiences.
Walmart Connect’s Rapid Growth
Walmart Connect has shown impressive momentum. During the fourth quarter of 2024, the platform’s revenue surged by 22% year-on-year, while full-year revenues climbed 30%. Globally, Walmart’s ad business, which includes platforms like Flipkart in India, generated $3.4 billion—a substantial figure, but still dwarfed by Amazon’s $14.6 billion ad revenue in Q4 2023 alone.
Vizio’s addition to the Walmart Connect ecosystem could significantly accelerate this growth. By combining Vizio’s advanced targeting technology with Walmart’s vast trove of consumer data, advertisers gain unprecedented opportunities to craft personalised, impactful campaigns.
What This Means for Retail Media
Walmart’s acquisition of Vizio underscores a broader trend in retail media networks pivoting toward streaming and connected TV to remain competitive. Traditional media channels are no longer enough to captivate modern audiences, who now expect seamless, integrated experiences across platforms.
With Vizio, Walmart gains a foothold in the living rooms of millions of Americans, blending retail and entertainment in ways that could redefine advertising. For brands, this represents a new era of engagement, where targeted campaigns are delivered directly through the TVs that consumers use daily.
Looking Ahead
As retail media networks mature, the competition to dominate premium advertising spaces intensifies. Walmart’s bet on Vizio positions it not just as a retailer, but as a media powerhouse capable of rivaling Amazon’s influence in the streaming space.
The $2.3 billion price tag is more than an acquisition—it’s an investment in the future of advertising. With connected TV and streaming poised to become the next great advertising frontier, Walmart’s move could reshape the industry and offer brands unparalleled ways to connect with their audiences.
This acquisition reaffirms Walmart’s commitment to innovation and its ambition to lead not only in retail but also in the media space. As the lines between retail, technology, and entertainment continue to blur, Walmart’s vision for the future seems clearer than ever.
