Sensor Tower released its "U.S. Retail Apps 2023 Report." Retail media networks (RMNs) are increasingly controlling ad spending, Chinese-owned apps are increasingly dominant in mobile retail, and Facebook and Instagram ad platforms are playing a unique role in driving installs of beauty apps like Ulta and Sephora. Many of China’s most popular mobile retail apps, both in terms of downloads and penetration, now have a presence in the U.S. Temu was the most downloaded app in Q1 2023, followed by Shein. Alibaba entered the top 10 for the first time in Q4 2022 and retained that position in Q1 2023. Overall, Chinese publishers accounted for 54% of the top 10 retail app downloads in Q1 2023. Retail Media Networks have begun to change the digital advertising landscape, with giants like Amazon, Target, and Walmart using their platforms to monetize and in the process enable brands and advertisers to more precisely target ads while gaining valuable insights into customer buying patterns. For example, Walmart’s Retail Media Network grew from 253 million ad impressions in Q1 2022 to 2.3 billion in Q4 2022, with January data showing continued growth in 2023. Looking at Target and Walmart’s computer and consumer electronics ads, it’s clear that advertisers are still strategizing around how to best leverage these platforms. More than half of the top 20 advertisers in CCE spend 100% of their co-marketing ad budgets on Target’s RMN, leaving a big vacuum in Walmart’s RMN that could be a sizable opportunity if these advertisers can capitalize on it. |
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