Chewy, Inc. is investing in a refresh of its retail media network under the name Chewy Ads.
The new push is geared toward leveraging Chewy’s customers as an engaged audience for brands that want to reach them. The pet supplies retailer is not alone in 2025 as other retail media networks try to expand reach and revenue. These retailers seek to persuade brands to buy into new ways to reach customers through retail media ads.
Currently, Chewy is No. 10 in the Top 2000, which is Digital Commerce 360’s database ranking North America’s largest online retailers by their annual web sales. In the Top 2000, Digital Commerce 360 categorizes Chewy as a Specialty retailer. Digital Commerce 360 projects Chewy online sales will reach $11.91 billion in 2025.
Chewy web sales by year
What is Chewy’s new retail media pitch?
Chewy announced what it says is a “newly optimized” retail media network, building off its previous work. Ultimately, it has positioned Chewy Ads to help pet brands strategically engage pet owners (which Chewy calls “pet parents”) while they shop. A Chewy spokesperson noted that with over 20 million customers and 80% of sales from its Autoship subscriptions, Chewy Ads can provide a unique platform that drives repeat sales and strong conversions. That value proposition is the goal, said Frank Mulcahy, head of Chewy Ads.
“Our goal with Chewy Ads is to continuously evolve our retail media platform to help brands connect with pet parents in more meaningful and impactful ways,” Mulcahy told Digital Commerce 360. “By leveraging targeted, data-driven advertising, we aim to drive discoverability, conversions, and long-term growth, enabling brands to expand their reach and meet their sales goals.”
Mulcahy explained that the company is focused on enhancing the shopping experience. Its priorities include scaling ad solutions and delivering greater performance insights to maximize impact for brand partners.
Formats that Chewy Ads includes
Mulcahy added that sponsored products and sponsored brand ads are now part of the package. They extend across a variety of onsite and offsite channels, including video ads.
“We’re excited to see this new format evolve, helping brands create engaging, high-performing content that resonates with pet parents,” Mulcahy said. In addition, he pointed out that beyond the expanded onsite placements, the platform is evolving to include more distribution points in the programmatic universe. Those points include Facebook, Instagram, YouTube and TikTok, among other channels, all underpinned with exclusive Chewy first-party data and closed-loop attribution.
The ads appear to be working, according to Mulcahy. He said they deliver immediate conversions and long-term growth.
“One in three Chewy ad clicks results in a purchase, and 45% of ad-attributed purchases lead to recurring Autoship orders,” Mulcahy stated.
How Chewy is positioning Chewy Ads
Ad experts say Chewy is employing a smart strategy by pursuing this.
“Chewy understands the value of their highly engaged audience, who are coming to their digital properties in a buying mindset,” said Mark Fishkin, vice president of retail media platforms at the vendor In-Store Marketplace.
“By offering video ads as part of its retail media network, Chewy creates a new revenue stream while allowing brand partners to reach targeted pet owners,” Fishkin explained.
Moreover, he said that to maximize their own sales potential, Chewy might want to ensure any clicks from video advertisers launch in a separate tab. That could allow shoppers to continue their Chewy purchasing experience without interruption.
Lou Haverty is the owner of Skid Retailer, which sells industrial equipment online and tracks online commerce. He said that Chewy can demonstrate value by opening its platform to other retailers.
“The first benefit is they are generating revenue from renting the ad space on their store,” Haverty assessed.
For example, he mentioned that customers reaching the Chewy homepage are typically there because they have already decided to purchase a Chewy branded product. Thus, showing an ad to them is not taking anything away from Chewy’s sales.
“So a brief ad from a new brand won’t necessarily change that buying decision,” Haverty said.
He sees long-term value for Chewy if it would start an affiliate relationship with those other brands. By doing do so, it could actively sell that brand to its customers via email campaigns after the initial purchase.
“This arrangement can also help Chewy identify potential acquisition targets because it would provide insight into other products that sell well to the Chewy audience,” Haverty stated.
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