Core Insights - The summer retail market in 2025 is characterized by an intense competition over "promotion duration" and "consumer mindset," with major retailers extending their promotional periods to capture market share amid rising price sensitivity [1][2][3] Group 1: Amazon's Prime Day Strategy - Amazon extended its Prime Day from 2 days to 4 days, leading to a significant increase in overall advertising budgets, with daily ad spending rising by 19.2% year-over-year [2][12] - The first day of Prime Day saw the highest hourly sales, indicating a concentrated effort by brands to maximize exposure during this "golden window" [2][12] - Despite the extended promotion, sales slowed on the second and third days, with a resurgence on the fourth day, highlighting a shift in consumer urgency [2][31] Group 2: Walmart's Competitive Edge - Walmart experienced a remarkable turnaround, with advertising spending increasing by 46.1% year-over-year, surpassing Amazon's growth [3][27] - The efficiency of Walmart's advertising improved, with a 15% decrease in cost-per-click (CPC) and a 21.4% increase in return on ad spend (ROAS) [3][14] - Walmart's advertising sales grew by 22% year-over-year, outperforming Amazon's 13.3% increase, indicating a shift in the competitive landscape of retail media [3][27] Group 3: Performance of Other Retailers - Target's promotional efforts showed modest growth, with a 7.4% increase in advertising spending, but faced a 9.5% decline in ROAS [4][29] - Instacart's extended promotion period of 92 days led to fluctuating performance, with a notable drop in advertising sales by 10.8% year-over-year [4][29] - Both Target and Instacart struggled to match the urgency and effectiveness of Amazon and Walmart's promotional strategies [4][29] Group 4: Category Insights - Electronics emerged as the top-performing category on Amazon, achieving a ROAS of $13.43, while grocery and food categories reflected a 36% conversion rate, indicating a preference for essential goods [2][31] - Health and personal care categories saw a 24.7% increase in daily ad spending, but faced challenges with declining ROAS due to rising import costs [5][13] - The pet supplies category experienced a significant increase in CPC by 27.5%, highlighting the ongoing demand in the "pet economy" despite rising advertising costs [5][13] Group 5: Market Trends - The retail market is witnessing a shift towards "price sensitivity," with consumers prioritizing practical and high-value items, as evidenced by 65% of purchases during Prime Day being under $20 [6][21] - "Discovery-based e-commerce" is emerging as a new growth area, with platforms like TikTok driving traffic to Amazon, indicating a shift in consumer purchasing behavior [6][28] - The competition in retail media is expected to focus on "cross-platform integration" and "full-funnel operations," with brands needing to adapt to multi-platform strategies to succeed [6][28]