"The retail media landscape is only becoming more crowded, but Target's guest insights are often cited as a key differentiator," said our analyst Sarah Marzano during EMARKETER's recent Commerce Media Summit.

She was joined by Sean McGahey, senior director of performance and insights at Roundel, Target's retail media arm, to discuss how the network is leveraging guest insights, measurement innovations, and AI to create meaningful connections between shoppers and brands.

Guest-first approach sets Roundel apart

Roundel's strategy is built on three key differentiators that position it uniquely in the retail media landscape.

"Roundel doesn't spam its guests," said McGahey. "We really focus on curated messaging that's integrated within the guest experience so that it feels additive as opposed to disruptive."

This guest-centric approach extends to Target's loyalty program, which has reached impressive scale. McGahey said Target Circle now boasts over 100 million members, with 13 million joining in the past year alone. These members shop three times more frequently than non-members, creating an expansive, addressable audience for advertisers.

The network's commitment to understanding Target shoppers, who McGahey describes as "brand believers" who refer to "my Target," translates into cross-category insights that help brands connect with consumers in meaningful ways.

Measurement evolves beyond ROAS

As brands demand more sophisticated measurement solutions, Roundel has developed a comprehensive approach focused on demonstrating true business impact.

"In retail media, you have the benefit of having a lot of different metrics and data, which can also be a curse," McGahey noted. "We really orient towards what measurement is telling us about how our guests are moving through their Target experience."

He said Roundel has implemented three key measurement strategies:

• Holistic closed-loop measurement across social platforms including TikTok, YouTube, Pinterest, and Meta
• A portfolio approach to incrementality that includes synthetic control methods, randomized controls for channel-specific insights, and match market tests for comprehensive analysis
• Enhanced new guest metrics that show not only overall performance but also per-channel effectiveness in acquiring new customers

This focus on incrementality as the "North Star" metric reflects the industry's evolution beyond simple return on ad spend (ROAS) calculations.

"As a retail media industry, we have all come to terms that while ROAS is a helpful metric, you need more than ROAS to understand the impact on bottom line," McGahey said.

Off-site strategy outpaces industry standards

While most retail media spending still goes to onsite placements, Roundel has made significant investments in off-site media—a strategy that's paying dividends as the market evolves.

Approximately 30% of Roundel's campaign activations are off-site, compared to an industry average of 21%, according to McGahey. This approach recognizes that Target shoppers engage with brands across multiple touchpoints before making purchasing decisions.

Roundel recently launched Precision Plus, a solution that combines off-site strategies with AI capabilities from partners like Pinterest, Google, and Meta.

"It's all in an effort to meet the guests where they are, leaning into the value of our partnerships and using the applications of AI in a practical, real way," McGahey explained.

Bridging shopping experiences

Target's quintessential omnichannel shopper moves seamlessly between digital and physical experiences, and Roundel is building advertising solutions that reflect this behavior.

"We recognize that 76% of Target shoppers have the app or Target.com up while they're in the store," said McGahey. This insight led to the development of in-store mode within the Target app, which incorporates brand messaging into the physical shopping experience.

The company is also expanding in-store touchpoints through digital screens and service hubs, creating a connected experience that follows shoppers from online discovery through to in-store purchase.

This approach acknowledges unique Target shopper behaviors, such as customers who use Drive Up service to receive digital purchases but then enter the store for additional shopping. Roundel ensures consistent brand messaging throughout this journey.

"Every connection point, every decision that we're making is oriented to be additive to the guest experience and not an advertising distraction," said McGahey.

Watch the full session.

This article was prepared with the assistance of generative AI tools to support content organization, summarization, and drafting. All AI-generated contributions have been reviewed, fact-checked, and verified for accuracy and originality by EMARKETER editors. Any recommendations reflect EMARKETER’s research and human judgment.

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