Chewy reported that its retail media network doubled both campaign volume and advertiser count year-over-year, according to Modern Retail. The company didn't publish the baseline figure, but the growth rate signals that brands selling pet products now see the platform as more than a promotional channel—they're paying for proximity to purchase intent and behavioral data they can't get elsewhere.
Chewy positioned its network around category depth rather than raw traffic. The platform offers brands access to 120 million pet parents who have demonstrated repeat purchase behavior in a high-frequency vertical. Crucially, Chewy didn't just sell display inventory. It packaged behavioral signals—repeat auto-ship cadence, protein preferences, life-stage triggers—into targeting parameters that let a kibble brand reach the household that buys grain-free every six weeks, not just anyone who clicked on a dog toy. The advertiser buys the context, not the eyeball.
This works because Chewy controls the full funnel in a vertical where switching costs are real. A pet owner who finds a food their animal tolerates doesn't experiment lightly. Chewy's data reflects that stickiness, and the retail media product monetizes it by letting brands interrupt that loyalty loop at the moment it's forming. The advertiser isn't buying awareness—they're buying the ability to re-route a decision before it calcifies into a subscription. That's worth more than a banner ad, and Chewy can charge accordingly.
The steal for a small physical-product brand is to build a media surface inside your own customer file and rent it to complementary suppliers. You don't need Chewy's traffic. You need a repeat cohort in a definable vertical and a way to let another brand talk to them without alienating your base. Start with your email list. If you sell hydration packs to trail runners, approach an electrolyte brand and offer a dedicated send to your active buyers from the last 90 days at a $400 flat fee or 15% of attributed revenue. Write the email yourself in your voice. The brand gets your audience and your credibility. You get cash and a stronger relationship with the runner who now sees you as a curator, not just a vendor.
Scale it by creating a quarterly partner spotlight in your post-purchase flow. After someone buys, show them a single complementary product from a brand you've vetted, with a 10% discount code that tracks back to you. Charge the partner brand $200 per quarter plus $2 per conversion. If you move 50 units, you've made $300 on top of the base fee. The customer gets a useful recommendation in context. The partner gets a warm intro. You've created a media asset without buying a single ad.
Expand by packaging your behavioral segments into a simple media kit. If you know which customers buy for durability versus aesthetics, or who auto-reorder versus one-time gift buyers, write it down. Offer a partner brand a dedicated SMS drop to your repeat cohort for $600, or a product insert in your next 500 shipments for $800. You're not selling access to a list—you're selling the targeting precision that comes from actually knowing your customer's behavior. Chewy's advantage is scale, but your advantage is specificity. A trail-running hydration brand that can deliver 200 confirmed ultra-runners is more valuable to the right electrolyte company than 10,000 general fitness emails.
The broader pattern is that any brand with a repeat customer base in a definable vertical is sitting on a media network. You don't need a platform. You need a cohort that someone else wants to reach and a distribution method you already own. Chewy doubled its advertisers because it made the value legible and the targeting surgical. You can do the same with a spreadsheet and a willingness to treat your customer file as something more than a retention tool.