0:00

designs media experiences and solutions

0:02

that connect 165 million

0:04

plus target guests with the

0:06

brands they love. Through

0:08

tailored partnerships and data -driven

0:10

strategies, they deliver impactful results

0:12

that elevate campaigns, maximize

0:15

reach, and drive growth, ensuring

0:17

brands are present in all the right moments, and

0:20

central to helping target guests discover

0:22

the joy of everyday life. Discover

0:24

how Roundel maximizes campaign

0:27

results by visiting roundel .com.

0:37

Hi, I'm John DiOzzo, editor of AdEats

0:39

Studio 30. Welcome to a special edition of

0:41

the Marketers Brief podcast. Today, we're

0:43

diving to the next chapter of

0:45

Retail Media, what some are calling Retail

0:47

Media 3 .0, with Monique Perlmutter, senior

0:49

director of the partner solutions group

0:51

at Roundel, targets in -house advertising business. Now,

0:54

here's my conversation with Monique. Bonnie,

1:08

for listeners who may not be familiar with Roundel, could

1:10

you give us a brief overview of the company and

1:12

your role there? Yeah, sure. So I

1:14

am a senior director, as you noted,

1:16

within the Partner Solutions Group. Specifically, I lead

1:18

our Essentials in Beauty organization, which you

1:20

can think of as everything CPG excluding food.

1:22

And my teams are partnering with brands

1:24

to build media strategies to drive growth of

1:27

their business. that target. So

1:29

I've been in the digital media space about

1:31

a little over 20 years. I've spent the last

1:33

eight years, though, at retail media networks. I've

1:35

been bit by the retail media bug. I just

1:37

love how dynamic this space is. So

1:39

let me double click into Roundel for a minute, because to

1:41

your point, there might be some folks who don't know what

1:43

Roundel is. We are one of the

1:45

fastest growing business units in the

1:47

company and target, having grown from just

1:49

five members in 2007 when we

1:51

were known as the online vendor marketing

1:53

team. to now having a global

1:55

team of over 800 people delivering nearly

1:57

$2 billion in value for Target

1:59

with expectations for continued growth. Target

2:02

has over 165 million guests, and I'll

2:04

note guests is how we refer

2:06

to our beloved customers. And our team

2:08

is working to create media experiences

2:10

and solutions that are designed to connect

2:12

those guests to the brands that

2:14

they love. And Roundel's power lies in

2:17

those qualities of our audiences because

2:19

our guests that they're trend forward, they're

2:21

deeply engaged, they enjoy shopping. And

2:23

they really see Target as a place

2:25

for discovery, a place to be

2:27

delighted and find joy. And we try

2:29

to harness that joy in Roundel

2:31

through tailored partnerships and data -driven strategies

2:33

that elevate our brands and

2:35

reach to deliver growth. for

2:37

about 2 ,000 advertisers. In

2:40

my intro, I refer to the retail media

2:42

3 .0 era. Can you share a little bit

2:44

of context about the earlier stages of retail

2:46

media and how these have evolved over time?

2:49

Yeah, absolutely. And it's been fun

2:51

to watch it all over time.

2:53

I will say no two days

2:55

are the same in retail media.

2:57

But there have really been three

2:59

phases that we've seen in this

3:01

journey, 1 .0, 2 .0, and 3 .0.

3:03

So 1 .0 has really been

3:05

about the basic fundamentals. This was

3:07

the early adopter stage. It represented

3:09

that initial phase of RMNs really

3:11

focused on just monetizing the space

3:13

within online shopping. So in this

3:15

stage, we saw basic advertising capabilities

3:17

roll out. RMNs were offering limited advertising

3:19

options really focused on lower funnel

3:21

funded by shopper budgets. And then

3:23

we also saw siloed operations. So

3:25

retail media departments operating completely separate

3:27

from the core sales activities, and

3:30

then focusing solely on managing ad

3:32

content and revenue. And then the

3:34

last thing that we saw in

3:36

retail media, 1 .0, was just

3:38

first -party data utilization starting to emerge.

3:40

So that's when the retailers first

3:42

began to leverage that data and

3:44

realize the value that it has

3:46

in creating digital ads with more

3:48

targeted audiences. But the integration was

3:50

pretty basic and not as sophisticated

3:53

1 .0. So then fast forward to

3:55

2 .0. That's really when we

3:57

saw the expansion of on and

3:59

off platform format. So that was a

4:01

big strategic shift towards a more

4:03

full funnel approach. So in this stage,

4:05

we saw expanded ad formats. The

4:08

focus was expanding beyond search. Search

4:10

was first, and then we were

4:12

moving to see video display and

4:14

the new measurement methodologies as well.

4:16

We saw new investment sources emerge.

4:18

So initial stages of unlocking brand

4:20

dollars started to happen versus just

4:22

simply focused on shopper marketing budgets

4:24

and the arm and space. And

4:26

then we also saw more data

4:28

-driven insights. So retailers were utilizing the

4:30

big data and AI to

4:33

enhance that target. in measurement and

4:35

just provide a slightly more

4:37

comprehensive approach to advertising solutions. Flash

4:40

forward to where we are now, RetailMedia

4:42

3 .0, and this is where we're

4:44

really seeing an advancement of off -platform and

4:46

AI optimization. This is the

4:48

latest evolution, and we really have

4:50

a lot of power to unlock the

4:52

full potential through integration of digital

4:54

and physical shopping experiences. We hear omni

4:57

all the time. That is where

4:59

we're at. So right now, we're really

5:01

focused on media excellence. We're competing against

5:03

larger media players. RetailMedia is media.

5:05

I hear that all the time. Strategic

5:07

partnerships are really key. So we're

5:09

working to master those off -platform partnerships

5:12

and then advanced data collaborations. How do

5:14

we continue to elevate? Not just

5:16

from data -driven insights, but to deeper

5:18

data partnerships. So it's really been a

5:20

fun journey and it's evolving pretty

5:22

quickly when you think about how fast

5:25

those three phases came to life. Great,

5:28

let's talk about the customer side of that

5:30

equation. Now, we've seen a lot of

5:32

change in how and where people shop. So

5:34

considering the current economic and socio -political environment,

5:36

how does Rondell keep driving impact and

5:38

brand safety in a landscape that's more fragmented

5:40

than ever? Yeah, well, I

5:42

mean, Rondell is a real omnichannel provider,

5:44

you know, to your point. We're focused

5:46

on meeting the customers where they shop.

5:48

They're shopping in a lot of different

5:50

places right now. Outside of our owned

5:52

and operated properties, we're trying to connect

5:54

with those target guests across social, Google

5:56

search, and on more than

5:59

150 premium publishers that we have partnerships

6:01

with. So we're investing heavily

6:03

in online and offline channel mix

6:05

to help our advertising partners drive

6:07

better outcomes. About 30 % of

6:09

our business is in off -site channels today, actually.

6:11

And our advertisers are just seeing really

6:13

strong results there. And to give you a

6:15

benchmark, the rest of the

6:17

market is at about 21 % of

6:20

investment to offsite channels. One reason why

6:22

we're really focused on this is

6:24

that our analysis has shown when a

6:26

brand pairs on site retail media

6:28

with two offsite channels, they're going

6:30

to drive a return on ad spend

6:32

or ROAS of about 1 .4 times

6:35

the baseline ROAS. And then when

6:37

they add in a third offsite channel,

6:39

it increases that ROAS to 2 .4

6:41

times the baseline. So we know

6:43

that that that omnie approach, that full

6:45

funnel approach is really important. And

6:47

then when we think about the brand

6:50

safety element, also important, you know,

6:52

we've curated these offsite partnerships to ensure

6:54

that our clients ads are running

6:56

only in brand positive environments. It's really

6:58

important that our brands run with publishers

7:00

that don't conflict with their values

7:02

and brand identity. And to be frank,

7:04

these are also the places where

7:06

Target feels safe running ads. So we

7:08

utilize the same publisher and ad

7:10

partnerships at Target that we recommend for

7:12

our brand. We're going to

7:14

take a quick break for a word from our sponsor. Roundel

7:26

designs media experiences and

7:28

solutions that connect 165 million

7:30

plus target guests with

7:32

the brands they love, through

7:34

tailored partnerships and data -driven strategies.

7:37

they deliver impactful results that

7:39

elevate campaigns, maximize reach,

7:41

and drive growth. ensuring

7:43

brands are present in all the right moments, and

7:46

central to helping target guests discover

7:48

the joy of everyday life. Discover

7:50

how Roundel maximizes campaign

7:52

results by visiting roundel .com.

8:01

Monique, measurement and incrementality remain

8:03

top concerns for advertisers. What are

8:05

you hearing from brand partners and how

8:07

is Roundel evolving to meet those

8:09

expectations? Yeah, it's a great

8:11

question and a big topic right

8:13

now. Our brand partners, they expect robust

8:15

and transparent retail media measurements. So

8:17

they want us to focus on the

8:19

key metrics that align with their

8:22

core business objectives, while also trying to

8:24

understand that customer journey and optimize

8:26

our investments across all of the channels

8:28

that we're running on. So I

8:30

think First of all, there really isn't

8:32

a silver bullet when it comes

8:34

to measurement right now. So our focus

8:36

is on continuing to invest in

8:38

building a comprehensive approach that supports our

8:40

advertisers no matter their objective, whether

8:42

it's upper funnel awareness or

8:45

lower funnel conversion. So when

8:47

we think about our approach, it includes

8:49

a few key features. So first, sales

8:51

attribution, closed loop attribution across O &O

8:53

and off platform is really important. We

8:55

have to understand the touchpoints and their

8:57

impact on sales. Signal sharing is

8:59

something that we've been working on and

9:01

that's going to enable new measurement data points,

9:03

including closed -loop measurement on all social platforms

9:05

by the end of this year. So

9:07

that's something we're really excited about. We've also

9:09

added closed -loop measurement on our digital out

9:12

-of -home offering, yeah, digital out -of -home

9:14

with closed -loop measurement that usually gets

9:16

a few oozing odds. So we have

9:18

about 28 ,000 billboards strategically placed in

9:20

close proximity to Target stores. So

9:22

we've been excited to roll that out

9:24

as well. So sales attribution

9:26

is one piece. Another piece is

9:28

incrementality that's obviously really important measurement

9:31

component right now. And so we're

9:33

looking at a blend of campaign

9:35

level lift, so synthetic control, as

9:37

well as matched market or geo

9:39

holdout analysis, so that we can isolate

9:41

the impact of media on sales and

9:43

help our partners make smarter investment choices.

9:46

Before today, our clients had access

9:48

only to Roundel's proprietary synthetic

9:50

control incrementality model, which is useful,

9:52

but didn't really provide the

9:54

level of precision that a lot

9:57

of our more sophisticated partners So

10:00

now we have this matched market model

10:02

approach and our customers can leverage

10:04

a statistically robust method for measuring those

10:06

incremental returns from their spend. We

10:08

have a little bit of manual oversight

10:10

required, but overall it's just providing

10:13

a deeper and more accurate view of

10:15

their effectiveness. And then

10:17

two other components I'll add in. I

10:19

think sales attribution and criminality are the

10:21

two biggest, but guest insights are really

10:23

important. So we're really trying our best

10:25

to understand the impact of the media

10:27

on shopper acquisition or new guest. acquisition

10:29

and then MMM partnerships. We're working

10:31

directly with our advertisers, their agencies,

10:33

their MMM providers, and you know,

10:35

as transparent as they're able to

10:37

be, it helps us to work

10:40

alongside them to ensure that the

10:42

value we're delivering is being seen

10:44

across the partnership and that we're

10:46

really optimizing towards true incrementality and

10:48

growth. We talked a lot about new

10:50

media and other digital channels. Well, let's talk about,

10:52

I mentioned brick and mortar in the introduction, let's

10:54

talk about in -store. So what are you

10:56

doing to enhance the in -store retail media experience

10:59

in this new 3 .0 era? Yeah, so

11:01

I said we're an omnichannel retailer

11:03

and because of that we're offering store

11:05

shopping and a full suite of

11:07

digital fulfillment options. Target's really focused in

11:09

growth over the next five years,

11:11

both in revenue and driving traffic in

11:14

store and online. So we're going

11:16

to see growth coming from three key

11:18

areas. The first is partnerships.

11:20

I don't know if you happen to

11:22

make it to a Target store on

11:24

Black Friday, but there was a very

11:26

exciting Taylor Swift book collaboration that launched,

11:28

lines out the door. So those types

11:30

of collaborations, they're a focus area

11:32

for Target. It's something we do well

11:34

and our guests love. So we've

11:36

seen Taylor Swift, Wicked, their upcoming partnerships

11:38

like Champion and Warby Parker, all

11:40

of those are projected to have a

11:42

really positive effect on our physical

11:44

brick and mortar stores. Another

11:46

area that we're focused on for

11:48

growth is infrastructure. So we're investing

11:50

four to five billion in new

11:53

stores, story models, supply chain improvement.

11:55

So that will be a true

11:57

enabler for growth. And then loyalty, we

11:59

launched Circle360 and we're making

12:02

continued investments in loyalty that

12:04

allowed us to add about

12:06

13 million new circle members

12:08

in 2024. And so

12:10

those are, you know, three key growth drivers.

12:12

But then what makes Roundel unique is

12:14

how we use these touchpoints to deliver joy

12:16

for the target guest. It's a big

12:18

differentiator. for us. In -store, we're

12:20

leveraging a full suite of

12:23

solutions to drive outcomes from

12:25

in -store screens to front -of

12:27

-store events, sampling. And it's

12:29

no secret that Target wins in seasons. That's

12:31

like our creme de la creme. And

12:33

so I can give you an example

12:35

of two seasonal moments where Target won

12:37

big with these in -store moments back

12:39

to school and holiday. So

12:42

during back to school, General

12:44

Mills leveraged Target's front -of -store

12:46

experience as a differentiator.

12:48

their campaign that allowed customers

12:50

to engage with products and

12:52

drive trial and sales.

12:54

And so through this work,

12:56

they saw 104 % portfolio

12:58

lift against control stores and their

13:00

digital campaigns had an 18 %

13:02

new guest acquisition rate. So that

13:05

was just a really successful example

13:07

of an omni -channel approach. And then

13:09

we saw another experience for Holiday

13:11

with Nestle. And so in the

13:13

Nestle Holiday campaign, we integrated both

13:15

store and digital elements. So we

13:17

focused on new in -store service

13:19

hub screens. So those are the

13:21

hubs around the store where you

13:23

can get information on products. And

13:26

through that combination, we saw

13:28

item level sales increase just over

13:30

14%. And then we achieved over 50

13:32

million impressions across the 1700 stores

13:34

that these activations ran in. So we

13:36

are really looking at it as

13:38

a 360 approach. It's not just the

13:40

in -store component and the digital component.

13:42

How do we bring them all

13:44

together to drive outsized impact for our

13:46

products? Right. we talked

13:48

about the evolution of retail media

13:50

networks, and they're apparently over 250

13:52

RMNs now. Yeah, with over

13:54

250 RMNs competing for ad dollars,

13:56

how does Randall carve out its own

13:59

space in that ecosystem? Yeah,

14:01

I mean, we're not just carving it

14:03

out. We're trying to create it as

14:05

well by leveraging tech partners to offer

14:07

more value for our advertisers and help

14:09

them realize, you know, bigger, more tangible

14:11

results. So I can give you a

14:13

little peek into two focus areas for

14:16

this year, which are an improved media

14:18

buying model for offsite media and then

14:20

signal sharing to help us enable improved

14:22

media performance and efficiency. So

14:24

first, our media buying model, we're improving

14:26

offsite media buying and selling to

14:28

better align with how large ad platforms

14:30

package their offerings. So this will

14:33

just in general streamline how

14:35

we run and place our media.

14:37

So this year, we're specifically

14:39

moving single format off platform media

14:41

products. It's a mouthful. We're

14:43

moving past that to bring forward

14:45

new objective based solution sets to

14:48

our partners. And this will

14:50

help us leverage the full strength of

14:52

our data assets to power performance and

14:54

drive bigger business outcomes. So let me

14:56

give you an example to kind of

14:58

make this more tangible. Currently,

15:01

our Pinterest products are oriented around

15:03

media format. So our partners are

15:05

buying Pinterest as Pinterest video, Pinterest

15:07

display. In the future state,

15:09

these products will become a solution package.

15:11

So it will be Pinterest awareness,

15:14

Pinterest consideration, or conversion, where all the

15:16

products are incorporated and the systems

15:18

are optimizing towards those key KPIs, awareness,

15:20

consideration, or conversion. So this is

15:22

something we're really excited about. It's going

15:24

to help simplify how we deliver

15:26

for our partners. And then the second

15:29

piece was signal So because of this

15:31

shift in how we're going to

15:33

be executing media buying, we're able

15:35

to roll out this unique capability

15:37

to provide real time signal sharing

15:39

on sales with off platform partners.

15:41

And then that will enable audience

15:43

and bid optimizations that leverage those

15:45

off -platform partners' native AI capabilities.

15:47

So it's really taking all the

15:49

best of Roundel and all the

15:51

best of our partners and combining

15:53

it to give us a unique

15:55

differentiator. So our data foundation is

15:57

what is going to be that core differentiator.

15:59

And we're really working closely with our off

16:01

-platform partners to be able to infuse

16:03

as many signals as we can to

16:05

optimize our offering. So these solutions, they're

16:08

going to leverage the full breadth of

16:10

our data assets and signals so that

16:12

we can really unlock our ability to

16:14

bring new formats to market faster than

16:16

ever before. So this is an area

16:18

we're really excited about. We've been partnering

16:20

with the trade desk in this work

16:22

and early results and signal sharing have

16:24

shown sales lifts up to 39 % with

16:27

an average lift of 10%. So again,

16:29

we're just really excited to expand this

16:31

work in 2025. All

16:33

right. Well, Bonique, thank you so much for joining Market Just Brief.

16:35

Thank you again for having me. This was fun. That

16:46

was O &E ProMutter, Senior Director of the Partner

16:48

Solutions Group at Rondell. I'm John DiOzzo, Editor

16:50

of AdH Studio 30. Special thanks to our

16:53

producer, Lauren Ciaro, to own TUR listeners. Be

16:55

sure to subscribe to the Marketers Brief podcast on

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or at least short enough to finish before your

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