Target's Game-Changing Holiday Marketing Tactics: Unveiling the Power of its Expanding Retail Media Network

Target is expanding its Roundel retail media network by introducing a self-service buying tool, partnering with premium programmatic publishers, and delving deeper into shoppable connected TV (CTV) during the holiday season. This comes as advertisers face a crowded retail media landscape, necessitating a selective approach to spending and a focus on platforms that offer advanced technology and audience insights. Roundel leverages first-party data from millions of Target shoppers and its Circle loyalty program, which boasts 100 million members. Furthermore, there is a growing demand for standardization in retail media to address the current lack of consistent tracking and measurement across networks.

Roundel President Sarah Travis

Permission granted by Target

Sarah Travis, president of Roundel, emphasized the need for the industry to mature and called for more transparency and standardization. Roundel supports the efforts of the Interactive Advertising Bureau in this area. In line with the goal of simplification, Roundel has introduced Roundel Media Studio, a self-service buying tool for Target's owned properties. This tool aims to attract smaller advertisers and contribute to platform growth. While growth targets for Roundel Media Studio were not disclosed, Roundel currently serves a network of thousands of advertisers.

Initially offering Target Product Ads, a sponsored product format, Roundel Media Studio will soon become the central hub for the network's various solutions. Currently in the pilot phase, Roundel Media Studio plans to extend its services to more advertisers by 2024.

According to Travis, Roundel Media Studio is envisioned as the ultimate destination for advertisers to access the diverse range of media experiences provided by Roundel. Travis emphasized the significance of this development, stating that it will greatly facilitate collaborations with smaller brands.

Roundel Media Studio is committed to providing advertisers with a wide range of purchasing choices. In order to address concerns about being a closed system in the retail media industry, Roundel is collaborating with third-party partners such as Criteo.

Travis, the representative of Roundel, emphasized their belief in and support for a more open and adaptable approach to media buying. Their goal is to ensure flexibility and offer brands multiple purchasing options.

Experiments and experiences

Roundel Media Studio enhances the network’s range of self-service tools, such as Kiosk, a feature for campaign reporting and measurement, and Programmatic by Roundel. The latter empowers brands to build customized audiences and target them with real-time bidding and a marketer's selected demand-side platform, ensuring inventory safety. This curated offering welcomes more than 40 new premium publishers, including The New York Times, AMC Networks, and Hearst properties, while expanding app inventory. Additionally, Roundel is transitioning from a fixed pricing model to a dynamic one.

"That is of utmost importance in enabling brands and agencies to gain greater control and achieve superior performance," Travis stated. The executive further elaborated that Kiosk will incorporate Programmatic by Roundel data, enabling brands to assess their programmatic performance data along with other purchases on Roundel. While Travis did not disclose specific figures, he mentioned that Roundel's programmatic business has experienced a growth rate of approximately tenfold since its launch in 2019. According to third-party analysis, Roundel stands as one of the largest retail media networks, generating millions in revenue for Target.

Roundel is expanding the availability of its shoppable CTV format, which has been undergoing testing for several months. Viewers of ads on certain streaming and TV partner services, such as Animal Planet, Crackle, and Sling TV, now have the option to scan a QR code, adding products to their cart for purchase. Target will then fulfill the order for pick up.

The aim is to make CTV viewing more commerce-oriented, moving away from a passive experience. This is a direction that competitors like Walmart are also taking. According to a spokesperson, Innovid CTV data indicates that over half of surveyed Target shoppers are now subscribed to an ad-supported streaming service, which represents a 24% increase from last year.

Travis stated that brands can leverage our first-party data for targeting and measurement. Additionally, they can take advantage of our same-day services during the holiday season. This will be beneficial for a larger group of our advertisers. Other upcoming features for the holidays include shoppable digital rooms, which enable various brands to advertise according to specific categories or guest segments. Moreover, we are increasing our investments in in-store retail media activations.

“As we head into holiday, we’re really thinking about experiential,” said Travis. “Think things like big sampling events and offering unique Circle deals during those sampling events.”