The Supply Side: Walmart touts gains with Vizio in first year

It’s been one year since Walmart acquired Vizio and its SmartCast Operating System for $2.3 billion. The deal integrated Vizio’s streaming data with Walmart’s retail reach, aiming for a closed-loop advertising system.

Seth Dallaire, chief growth officer at Walmart, recently noted the importance of the one-year milestone and the innovation uncovered in the past twelve months. Dallaire said from day one, Walmart united Vizio’s technology with the retail giant’s scale and reach.

“The results are clear: Our expanded TV lineup with Vizio OS, including the popular Onn-branded models, is now a familiar sight in Walmart and Sam’s Club stores nationwide,” he said. “This strategic move has paid off, with 80% of Vizio households already shopping at Walmart and third-party data confirming Vizio OS is the fastest-growing brand in the U.S., driven by strong performance in key events like Black Friday.”

He said the future of connected TV at Walmart is one where entertainment and commerce intersect.

“Imagine a world where a family sits down to watch a movie on their Vizio TV and, with the tap of a remote, they can instantly purchase the pizza featured on screen,” Dallaire said. “This is the promise of an interactive, shoppable viewing experience. This integration will drive growth and deliver value across Walmart’s entire e-commerce and digital ecosystem. Most importantly, we remain dedicated to deepening our understanding of our customers and providing a viewing experience that not only entertains but also enriches their lives, fulfilling the promise of what connected TV can be.”

HOUSEHOLD REACH
Walmart said it has the potential to reach 25% to 30% of U.S. households through Vizio’s operating system, and the combined scale presents an advantage that is likely to grow as Walmart gathers more data on Vizio customers.

The retailer also announced plans to make Vizio one of its private brands, selling smart TV sets exclusively at Walmart and Sam’s Club. Walmart is folding Vizio’s operating system into its private brand, Onn, which already had roughly 13.7% of the market share in the U.S. last year. Vizio controlled about 10.4% of the TV market share. The brands should be enough to push Walmart ahead of Samsung and into the top five global TV brands by the end of 2026.

Dallaire said Walmart’s story extends beyond hardware sales growth.

“Together, we’ve elevated the Vizio operating system, delivering a faster, more intuitive experience for our customers,” he said. “These enhancements have driven significant customer satisfaction and strengthened our reputation for innovative, user-friendly technology. With streaming making up 63% of all TV viewing time on our platform, this is a clear sign we’re capturing attention like never before.”

ENHANCED ADVERTISING
Dallaire said Walmart Connect has expanded from performance-based media to full-funnel solutions, focusing on new experiences across all customer touch points.

He said the combined platform uses Walmart’s first-party data to target customers offsite, helping brands connect with shoppers on and off Walmart’s own properties. He said the platform provides capabilities such as retargeting, audience segmentation and closed-loop measurement to track sales impact online and in-store and strategic placements on the Vizio home screen.

The retailer also intends to capture ad revenue from brands that do not sell products at Walmart, such as automotive, insurance and media companies, by using Vizio’s audience and Walmart’s consumer insights. Dallaire said as advertising shifts to retail media and connected TV, owning Vizio will accelerate Walmart’s growth, unlocking brand and performance solutions.

“Leveraging Vizio’s advanced analytics, we deliver a more personalized and engaging viewing experience, helping customers discover relevant content and products while driving measurable results for our partners, as seen by the 53% surge in our global advertising business in the third quarter,” Dallaire said.

In Walmart’s recent quarter, Walmart Connect, the U.S. retail media business, saw 33% year-over-year growth, driven by more advertisers and marketplace activity. The ad performance complemented U.S. e-commerce growth of 28%.

Walmart also said it would see a reduction in earnings per share this year ending Feb. 1 to absorb the $2.3 billion purchase of the all-cash Vizio deal. The Vizio deal also helped Walmart Connect to grow its revenue by 53%, compared to 27% with Vizio.

SMARTCAST, CONNECTED TV
Analysts at Piper Jaffray estimate that digital advertising, which Vizio facilitates through its SmartCast operating systems, carries margins of 70%, helping to build revenue for Walmart.

Walmart said its long-term strategic goals for its advertising business with Vizio center on creating a closed-loop “everything store” ecosystem that fuses media, hardware and retail commerce. By acquiring Vizio’s SmartCast operating system, Walmart said it aims to own the entire living room from the screen to the checkout process for products households see and want while watching.

Dallaire said Walmart’s unified vision is creating new opportunities for suppliers. He said by expanding the TV assortment with Vizio OS, Walmart can provide new digital advertising options for its suppliers to reach bigger audiences.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics, and is sponsored by HRG.