Acadia launched an advertising management capability for the Chewy retail media network in 2023, adding this platform to the roster of retail media networks we now support. (See: Acadia Launches Dedicated CHEWY.com Unit)
My name is Damiano Ciarrochi, and I lead retail media network expansion at Acadia. In this post, I'll recap an interview that we did for the Ecommerce Braintrust podcast about advertising on Chewy's retail media network.
The summary follows the video.
About Chewy's Retail Media Network
Chewy's retail media network is still quite new, having only opened up to advertisers recently. But it offers interesting potential, especially for brands in the pet care space looking to find new customers.
As background, Chewy is solely focused on pet products, so their shopper base is very loyal and niche compared to mass retailers like Amazon or Walmart. Pet owners tend to stick with brands their furry friends like, making it a great channel for customer retention.
How the Chewy Advertising Platform Works
The self-serve platform Chewy uses is called PromoteIQ, by Microsoft. It's fairly basic - you get a simple dashboard to launch campaigns and view reporting.
Right now Chewy only offers one campaign type, product listing ads (PLAs), similar to Amazon's sponsored products. But they plan to launch sponsored brand campaigns soon.
Acadia partners with the ad tech platform Pacvue to enable enhanced campaign management and reporting beyond what PromoteIQ provides.
Bidding and Targeting Capabilities
Here's where Chewy differs from Amazon - you bid at the individual product (SKU) level rather than on keywords. So you can set a higher budget for your higher priority items.
The ad targeting is contextual, meaning products show for shoppers browsing related categories or searching relevant terms. You control bids by product category and subcategory.
Chewy does allow keyword bid modifiers, but you lack visibility into performance by keyword. So optimization can be more challenging than in Amazon.
Why Chewy is Worth a Look for Pet Brands
While the platform needs development, there are compelling reasons for pet brands to consider Chewy:
- Early adopters can gain an advantage before competitors join
- Conquesting competitors' shoppers is possible here
- Loyalty means getting trial can lead to long-term buyers
- Chewy incentivizes brands who help them grow revenue
If you’re a brand in the pet category that sells on Chewy.com, it’s a no-brainer to get started with ads. Learn more about Acadia’s Chewy advertising managed services.
Damiano Ciarrochi is the Head of Retail Media Network Expansion at Acadia.