In a year marked by turbulence for many in the retail sector, Target’s in-house advertising arm, Roundel, has emerged as a standout success.
The retailer’s ad business reported an impressive 24% year-on-year revenue increase in 2024, reaching a total of $649 million – approximately £505 million – with Roundel driving the lion’s share of this growth.
In an increasingly crowded and complex retail media landscape, Target’s investment in Roundel appears to be paying dividends, while also signalling a broader strategic shift within the advertising world.
Investing in the Future of Retail Media
Target’s renewed commitment to Roundel comes at a crucial time for the retail media industry. While retail media networks are being heavily marketed as the next major wave in advertising, many have struggled to deliver the sophisticated data and measurement capabilities that marketers crave.
Research suggests that although brands have been drawn in by the promise of granular audience insights and closed-loop reporting, the execution across most networks has fallen short of expectations.
Target is attempting to flip the script with a series of strategic upgrades to Roundel. Among these is the newly launched Precision Plus – a campaign management enhancement designed to give advertisers more control and efficiency.
Also gaining attention is Target’s revamped Target Product Ads, which leverage the company’s own consumer data to meet shoppers where they are. According to Target, these ads have demonstrated a sales growth increase of up to 35%, providing a tangible return for participating brands.
New Features Aimed at Usability and Scale
Beyond campaign performance, Target has introduced a slew of features aimed at improving the accessibility and functionality of Roundel’s offering. A new self-service creative studio allows brands to build assets more efficiently, while geo-enabled measurement tools add another layer of precision for marketers wanting to track performance in local markets.
One standout innovation is Roundel’s digital-out-of-home feature – enabling advertisers to display billboard ads near Target stores, complete with closed-loop measurement capabilities integrated into the Roundel platform.
These developments are designed not only to enhance advertiser satisfaction but to strengthen Target’s position in an arena dominated by one goliath: Amazon.
A Battle in the Shadows of Amazon
Despite the buzz surrounding retail media, Forrester research suggests that the sector’s scale has often been overstated – largely due to Amazon’s overwhelming dominance.
In 2024, Amazon Ads generated a staggering $47 billion in revenue (approximately £36.6 billion), eclipsing all other retail media networks combined. Walmart, the next largest player, brought in a comparatively modest $3.4 billion (£2.6 billion).
Yet Roundel is carving out a meaningful niche. Working with over 2,000 vendors and high-profile publishing partners like Pinterest, PopSugar, NBCUniversal, Hearst, USA Today, and The New York Times, Roundel delivered campaigns for household names such as Apple and Mars Wrigley.
According to Target, the platform drove more than 250 million visits to Target’s digital and physical properties in 2024 – a figure that underlines the growing influence of its ad network.
The Race to Keep Up
While Roundel continues to scale, other retailers are also racing to enhance their media network capabilities.
Walmart made headlines last year by acquiring electronics brand Vizio for $2.3 billion (£1.8 billion), a move aimed at strengthening its connected TV offering. The company also revamped its Sam’s Club Member Access Platform (MAP), sharpening its focus on personalisation and data-driven ad placements.
These developments indicate that retail media is no longer a side hustle – it’s a serious revenue generator and strategic priority. For brands, the question is no longer if they should invest in retail media, but where they will get the best return.
Final Thoughts
Target’s Roundel has positioned itself as more than just a digital billboard – it’s fast becoming a full-scale media powerhouse.
At a time when many retailers are grappling with changing consumer behaviour and tightening margins, Target’s ad division has emerged as a bright spot, offering not just revenue but a roadmap for the future of brand engagement.
As the battle for advertising supremacy heats up, Roundel’s commitment to innovation, data integrity, and advertiser success could help it stand tall – even in the shadow of Amazon. Whether it can maintain this momentum remains to be seen, but for now, Roundel is making all the right noises in a rapidly evolving retail media game.
