We’ve acquired Video Game Insights (VGI)!
Sensor Tower · Kara Lee · January 2025
Pharmaceutical Giants Maintain an Impressive Share of Retained Users
Walgreens 1Q25 earnings offered optimism to investors, as the company’s revenue topped expectations despite facing numerous challenges in 2024. Sensor Tower data shows that the largest US pharmaceutical companies have been successful in slowly growing their mobile audiences, as CVS and Walgreens saw MAUs increase 31% and 1% YoY, respectively, in 2024, likely driven by an increase in prescription sales. CVS and Walgreens both benefit from the recurring nature of their business, as retained user rates have remained above 60% for the past three consecutive years.
Key Takeaways:
CVS has witnessed the most impressive mobile growth across the cohort, with MAUs and downloads rising 31% and 26% YoY in 2024. ST data provides a good forward indicator of CVS revenue, given the .91 correlation between CVS reported revenue and ST MAUs, dating back to 1Q20.
Though Walgreens has discussed closing stores in 2025 to increase profitability, the company saw US MAUs grow 1% YoY while downloads only fell 4% YoY in 2024, which suggests that mobile app users are more likely to be loyal customers and less impacted by retail closures
Despite a challenging year for CVS and Walgreens, both companies can rely on the strength of their mobile userbases, as both apps saw their percentage of retained users account for over 60% of users since 2022. Though the CVS app recorded 55% one-star reviews in 2024, the app only saw retained users fall 3% during the same period, highlighting the strength of its prescription business in its overall app engagement
As CVS and Walgreens reported store closures and revenue losses in 2024, the pharmaceutical retailers maintained their 2023 advertising levels, with US ad spend increasing 7% YoY for Walgreens, but remaining flat for CVS. As 2024 wrapped with net spending growth for across the cohort, 4Q24 saw US ad spend fall across all three advertisers, down 25% YoY
As retail media networks continue to gain prominence, Walgreens and CVS both saw advertising impressions increase in 3Q24, up 54% and 6% YoY, respectively. Walgreens has not only been successful in growing the advertising impressions within its retail media network, but also accounted for 2.5x more impressions than its primary competitor, CVS Media Exchange, in 3Q24
For more information, request the full report from reports@sensortower.com.
Written by: Kara Lee, Brand & Digital Advertising Analyst
Date: January 2025