Retail media and advertising monetization

“This quarter, we completed our first targeted media campaign through third-party media channels with one of our largest CPG partners. The campaign achieved two to three times the return on ad spend typically expected, highlighting the value we can create for our members and suppliers.”

“To use a baseball analogy, we are very much in the early innings with retail media. But we continue to believe this represents a significant growth opportunity in the future.”

“Our retail media team is now working with over 25 suppliers who are eager to participate in our next wave of off-site campaigns.”

“That and that again is, as Gary mentioned earlier, we're in the early stages and we're gonna look at where we feel the benefits will be to our members. So that is to be determined yet.”

“On retail media, following our first off-site retail media campaign in Q1, we have entered into a number of additional similar campaigns with roughly ten different partners.”

“We'll think of it very much as being, how do we generate our share of that value so we can reinvest it in our members and continue to drive our overall loyalty, member engagement, and drive top-line sales. So a little bit of a different approach for us than you probably hear from some of our peers and others.”

“These digital capabilities are also an enabler for retail media, as they allow us to target specific ads that deliver greater value for both members and suppliers, while always honoring the privacy choices of our members.”

“It's still very much in the early stages. You know, when we talk about alternative revenue for us, I think that it's broader than media.”

“Roundel continues to experience rapid growth, based on the joint value it creates for both our guests and our vendors.”

“Beyond the direct benefit of guest engagement with the platform, Target Circle also helps us gain deep consumer insights, allowing us to extend more personal, customized offers through our Roundel advertising business.”

“For the full year, Roundel is expected to grow in the high teens, on top of more than 20% growth in 2023.”

“Given recent trends and the increased focus on retail prime we've seen at the federal, state and local level, we expect to benefit from further shrink improvement in 2025 and beyond.”

“At nearly $2 billion in value for Target, we see the potential for Roundel to double its size over the next 5 years.”

“beyond the direct benefits of rising digital sales, they also fuel the growth of profitable services like Roundel, our retail ad business, and Target Plus, our third-party digital marketplace, both of which saw double digit growth in Q1.”

“Another way we deliver newness and value is through our Target Plus marketplace, where we have set ambitious goals to grow GMV to $5 billion by 2030 by offering even more brands and products guests want and expect from Target.”

“This quarter alone, we grew Target Plus GMV by more than 20%, adding hundreds of new partners to the platform, driving traffic, and increasing conversion online.”

“Our marketing team is rebranding our retail media network program to a simpler platform where we help our brand partners meet a wide range of marketing objectives from performance on shelf and new product launches to seasonal promotions and multiproduct sales.”