Amazon, Walmart lean into onsite ads for bottom-of-funnel sales

Amazon (AMZN) and Walmart (WMT) are increasingly prioritizing their own owned digital platforms to capture consumer attention near the final point of purchase, according to data from market intelligence firm Sensor Tower. This retail media network approach contrasts with many rival retailers who continue to rely more heavily on external off-site advertising to drive shopper acquisition and conversion. By focusing advertising placements within their proprietary websites and apps, Amazon and Walmart are seeking to maximize high-margin retail media revenues and capitalize on active consumer intent. Off-site retail media, by comparison, often incurs higher traffic acquisition costs and can result in lower conversion rates compared to on-platform, closed-loop advertising environments. The strategic shift underscores the growing importance of first-party digital real estate in the retail media landscape. As digital advertising budgets face tighter scrutiny, retail giants with extensive owned ecosystems and rich customer purchase data are positioned to capture a larger share of enterprise advertising spend relative to competitors.