Target has long focused on new ways to serve our guests and propel our business — and in 2016 we launched our retail media business, Roundel, to continue doing both.
The result:
A better connection between brands and our guests through curated media experiences designed by Target. Year after year, Roundel has been a source of growth for Target, all while helping guests save time and money and driving strong sales results for our partners.
What is Roundel?
At its core, Roundel is about using Target’s rich insights to create smart, personalized advertising campaigns that bring guests more of the products and offers they love. That moment when guests are prepping for their Target run and see exactly the right online offer at just the right time? That’s Roundel. It works on Target’s platforms, like Target.com and our mobile app, as well as going beyond to connect our partners with guests across more than 150 premium publishers and channels (think: Pinterest, PopSugar and NBC Universal). We work with some of the largest brands and advertising agencies in the world to create a unique experience for our guests’ digital journey.
That’s one of the many reasons Roundel has become an important part of Target’s growth story. Through our partnerships with a wide range of brands, from smaller businesses to global companies like Apple, Mars Wrigley and PepsiCo, Roundel continues to be a key contributor to the growth of our enterprise. One example of that: Roundel has grown by more than 60% over the last two years, delivering over $1 billion in value for Target in both 2021 and 2022. And it’s why we’re continuing to invest in this key driver of revenue and market share in 2023 and beyond.
Roundel’s growth is powered by a hybrid team of over 500 team members, with headquarters in Minneapolis and Bangalore, plus remote workers across hubs in Los Angeles, New York, Chicago and many more. Since 2018, we’ve grown the Roundel team by nearly 50%, bringing in industry-leading talent across our Partner Solutions, Performance and Insights, Data Science, Product and Engineering teams.
How we’re different
Roundel extends Target’s strong guest relationships to our brand partners, but the differentiation between us and our competitors doesn’t end there. We make our easy-to-use, effective advertising solutions available to brands of all sizes.
And we do it in a way that only Target can, using insights to build connections via omnichannel experiences for our more than 165 million guests which – along with our diversified media mix, enhanced technology and product offerings, and best-in-class creative resources – also helps our brand partners solve business challenges to seamlessly reach guests and drive sales.
We take a curated approach to how and where we run media, which in turn elevates the guest experience and creates lasting loyalty. This includes reaching our guests wherever they may be in their shopping journey, from in-store experiences to Target Circle, to our industry-leading suite of same day services. Guests are four times more likely to trust ads from Target over brands they have not purchased from previously.
Earlier this year, we expanded to include 40+ new premium publishers and app inventory opportunities, helping advertisers buy media in the way that works best for them while reaching Target’s omnichannel guests wherever they’re browsing. Examples of new publishers and app inventory available through Programmatic by Roundel include The New York Times, AMC Networks, Hearst properties, and more. App inventory is also available across select premium publishers such as BuzzFeed and USA Today.
Taking a “One Target” approach, we work with various teams including Target’s Merchandising and Marketing functions to consistently deliver engaging content that resonates with shoppers, leading to a stronger emotional connection and advocacy with our guests. We also empower our brand partners by giving them access to Target’s resources and tools, including the ability to reach specific guest segments and help them easily understand how and where consumers are shopping. This ultimately informs their marketing decisions across a breadth of platforms including our website, app, and in-store experiences.
What’s new
In 2023, we debuted a new look and feel for Roundel, creating an even stronger connection between our advertising business and the Target brand. The new logo reflects Target’s renowned bullseye, capitalizing on the strength of our brand equity and relationships with guests — just one more way Roundel is further differentiated within the retail media industry.
We’ve invested in innovative new business solutions and the team that powers Roundel to drive sustained growth, leading to a return on ad spend (ROAS) increase of more than 50% in the last year alone.
What’s ahead
We’ll continue to explore new ways for our brand partners to build meaningful relationships with our guests in 2023 and beyond with enhanced products and technologies, including testing new in-store experiences, further evolving our creative capabilities and exploring new opportunities to maximize Target’s omnichannel ecosystem this holiday season.
For example, we’re launching our new self-service buying tool, Roundel Media Studio in early 2024, making it easier for brands to buy from us and building on the success of our first-to-market measurement tool, Roundel Kiosk. Roundel Media Studio allows brands of all sizes to access Target’s audience and media, including smaller brands and Target + marketplace partners.
We’re also continuing to build off our connected TV (CTV) offering with new, industry-leading formats. Guests can now add products directly into their cart for Order Pickup from the ad via QR codes.
Lastly, as we head into the holiday season, we’re executing a number of experiential events — tied to promotions, offering guests demos, in-store sampling and more!