Walmart continues to dominate the U.S. retail media landscape, according to a new report from Sensor Tower. With a staggering 11 billion impressions in Q1 2024, the retail behemoth far outpaced its closest competitor, Target, which garnered less than 7 billion impressions. Following Walmart and Target, specialized retailers like Chewy (pet supplies), Home Depot (home improvement), Best Buy (consumer electronics), and Ulta Beauty (cosmetics) rounded out the top ten. More than 10 retailers surpassed the one billion impression mark in the quarter.
Personal care takes center stage
Personal care emerged as the leading product category in Q1, driven by strong performances from Ulta Beauty and Sephora. Fragrances, makeup, and haircare products dominated the space, with brands like Coty, Estee Lauder, Shiseido, Rare Beauty, and L’Oreal leading the charge.
While general retailers like Walmart and Target boasted diverse product categories, specialized retailers like Chewy and Home Depot naturally focused on their core offerings. Still, advertisers often had multiple options to reach their target audience. For instance, pet supply brands could leverage retail media opportunities across Chewy, Petco, PetSmart, Walmart, and Target.
Successful partnerships drive growth
The report also highlighted the importance of retailer-advertiser partnerships. Chewy’s collaboration with Purina PetCare generated over 900 million impressions, underscoring the potential of co-branded campaigns. Additionally, Target’s partnership with Diane von Furstenberg, featuring an exclusive collection, contributed to the retailer’s strong performance.
The road ahead
While retail media is experiencing rapid growth, experts predict a slowdown in the coming year as budgets reach their limits. Despite this, the industry is expected to maintain a healthy growth rate of 10.6% in 2025. As the retail media landscape continues to evolve, Walmart’s dominant position, coupled with its strategic partnerships and investments in ad-tech infrastructure, positions it as a formidable force.
The Sensor Tower Digital Market Index offers a comprehensive look at the U.S. retail media ecosystem, examining top retailers, product categories, and advertisers.
