Amazon(US:AMZN)2025-08-29 14:06Investment Rating - The report indicates that Amazon is the leading retail media network (RMN) with significant advertising spending, suggesting a strong investment rating for the retail media sector, particularly for Amazon [17][28]. Core Insights - Amazon's advertising spending in the first half of 2025 reached $618 million, more than double that of Walmart and nearly six times that of Chewy, highlighting its dominant market position [28][31]. - The report emphasizes that Amazon attracted over 9,500 advertisers, nearly nine times more than its closest competitor, indicating its extensive reach and appeal to brands [7][33]. - Major advertisers include CPG and technology brands, with significant spending in personal care, electronics, and food and beverage categories [8][41]. - Most advertising strategies on Amazon are performance-driven, focusing on discounts and immediate purchase calls to action, which may limit creative differentiation [9][70]. Summary by Sections Key Points - Amazon is at the forefront of the rapidly growing retail media sector, with advertising expenditures far exceeding those of other retailers [17]. - The report provides insights into how advertisers can optimize their presence on Amazon and the potential opportunities available [18]. Sensor Tower's Retail Media Insights - The report utilizes Sensor Tower's data to analyze the advertising landscape on Amazon, focusing on brand strategies and channel effectiveness [21]. Contextualizing Amazon's Scale - In the first half of 2025, Amazon's advertising spending was $618 million, significantly outpacing competitors like Walmart and Chewy [28]. - The report highlights that other top retailers had revenues below $100 million, underscoring Amazon's substantial market share [29]. Top Advertisers & Categories - The top advertisers on Amazon include Samsung, Unilever, and L'Oréal, with spending concentrated in personal care and electronics [41][44]. - Personal care products led the advertising spending categories, followed by electronics and home goods [46][48]. Amazon's Activation Strategies - Approximately 50% of Amazon's advertising spending occurs on-site, indicating a focus on direct consumer engagement during the shopping process [57]. - The report notes that Amazon's channel strategy is less diverse compared to other retailers, with a heavy reliance on on-site display advertising [65][66].