Target's Roundel Eyes Growth With New Tools, Precision Strategy
Target’s retail media business, Roundel, is entering its next growth phase with updates to advertising capabilities, publisher partnerships and plans for in-store expansion in 2025.
In a July 10 fact sheet, Target said Roundel now generates nearly $2 billion in value for the company — a figure that includes ad revenue as well as contributions that offset operational and marketing costs. Target said it expects to double that value over the next five years.
Target also outlined how Roundel — which began in 2007 with a team of five and now has more than 800 employees — is evolving to deliver smarter, more measurable omnichannel campaigns for more than 2,000 vendor partners.
New Capabilities for 2025
In 2025, Target introduced Precision Plus by Roundel, an advanced buying solution that uses Target’s first-party data and real-time shopper behavior to improve campaign accuracy and targeting across the funnel. The solution is designed to enhance off-site media performance, and integrates with platforms including Google, Meta, Pinterest and The Trade Desk. It also leverages AI-powered tools and enhanced measurement to improve performance while campaigns are live.
Additionally, the retailer’s latest Roundel investments include:
- Target Product Ads (TPAs): Data-backed ads designed to reach guests where they’re already browsing. These placements saw more than 35% sales growth in 2024, per Target.
- Second Price Auction: A new bidding model for TPAs, designed to drive competitive pricing and better return for partners.
- Roundel Media Studio: A new self-service tool designed to make TPAs more accessible to “brands of all sizes,” including Target Plus marketplace sellers.
- Digital Out-of-Home (DOOH): Ads placed on billboards near stores, now connected to Roundel Kiosk for closed-loop performance tracking and optimization.
- Measurement: A new Matched Market Model for measuring ad incrementality, offering partners deeper insights through a “geo holdout approach” — a form of control testing that compares regions exposed to a campaign with similar regions that are not.
Expanding Off-Site and In-Store Reach
Still ahead in 2025, Roundel will test new in-store ad experiences, such as demos, sampling and digital screens — adding a physical layer to its growing omnichannel media ecosystem.
The retailer also said it will enhance creative formats across the omnichannel journey and support partners during seasonal campaigns.
While Roundel continues to activate across Target.com and the retailer’s mobile app, more than 30% of partner media spend took place off Target’s owned properties in 2024. Roundel’s media footprint includes over 150 premium publishers and app inventory, with recent additions like The New York Times, AMC Networks, Hearst, Buzzfeed and USA Today.
