Target’s secret weapon? India’s role in its ad empire | Advertising

Target doesn’t just have customers—it has guests, borrowing from the hospitality playbook. And those guests are now at the heart of an increasingly sophisticated retail media operation.

Industry analysts in Target as the fourth-largest retail network, trailing behind Amazon, Instacart, and Walmart in 2023. Roundel, Target’s advertising arm, is emerging as a major player, leveraging first-party data from over 100 million loyalty members to create targeted, high-return campaigns for brands.

At the core of this effort is Target in India (TII), which has quietly become an engine of the global retail corporation’s ad business, offering insights that personalise offers and maximise ad spend efficiency. So much that Target Corporation considers India its second headquarters as TII already represents almost every part of the Minnesota-based general merchandise retailer’s US business in India.

With a workforce of over 5,000 team members, up from 300 when it launched in 2005, TII supports Roundel’s growth by applying data-driven solutions to marketing campaigns, merchandising, properties, digital, data sciences, finance, supply chain and technology. But how does a team, based halfway across the world, design solutions for such a diverse and expansive market? Do they rely solely on data-driven insights, or is there a broader cultural framework guiding their approach?

Addressing this, Rakesh Mishra, senior vice president—marketing and digital at TII, told Campaign that the team’s ability to think creatively and solve problems with agility is what enables them to deliver impactful solutions.

“At TII, we always emphasise that we are one global Target team. Our teams have a deep understanding of our guests—their preferences, needs, and expectations—allowing them to craft experiences that resonate with both Roundel’s brand partners and Target shoppers, no matter the distance,” he added. “Our teams are deeply aligned with who our guests are and what their needs and wants are. This allows them to create solutions that are relevant for Roundel brand partners and Target guests, even from 1,000 miles away.”

Roundel has become a key growth driver for Target. The retail media network delivered $1.5 billion in value in 2023 for the retailer and grew another 20% in Q1 2024. The unit works with over 2,000 vendors, crafting exclusive campaigns that resonate with Target’s customer base.

Alpa Chandan, vice president of Roundel Media, emphasised to Campaign how the business integrates seamlessly into Target’s broader marketing strategy. “Target has always been known for creating immersive experiences for our guests, and our strong partnership with Roundel plays a key role in that,” she explains. One such initiative, ‘Target Wonderland,’ offers shoppers a holiday-themed interactive experience, blending shopping with entertainment.

A crucial aspect of Roundel’s success lies in its ability to use insights from Target Circle, the retailer’s loyalty program. The program, revamped in April, boasts three tiers. The base tier offers discounts, while the Circle Card is a financial card program. The third level is a Circle 360 is, which is a premium tier with same-day delivery benefits.

These loyalty tiers provide deep insights into shopping behaviours, enabling highly personalised offers, especially during key promotional periods like Target Circle Week. “As we look at our guests, we focus on delivering personalised offers and experiences that are relevant to them,” says Mishra. Data from Target Circle shows that when brands advertise to loyalty members during these promotions, the return on ad spend increases by 33%.

As brands increasingly seek to connect with Target’s 100-million-strong customer base, Roundel is scaling its capabilities. A key development has been the creation of more self-service tools, enabling brand partners to execute their own advertising campaigns within Target’s ecosystem.

Chandan highlights the growing role of automation in Roundel’s strategy: “Roundel Media Studio was our first step in creating more self-service opportunities for our brand partners to connect with Target guests. We will continue to bring innovative, curated solutions, both through client consulting and by engaging them to understand their business objectives.”

By equipping vendors with AI-powered solutions, Roundel ensures that brands can tailor their advertising investments with precision. The team also works closely with vendors to align advertising campaigns with guest preferences, ensuring ads feel like a natural extension of the shopping experience rather than intrusive promotions.

Target’s ability to leverage data extends beyond ad placement—it informs the retailer’s broader merchandising strategy. The insights gathered by TII have helped the company identify gaps in product offerings, ensuring that ad campaigns not only drive sales but also influence inventory and product selection.

“We are always looking at what we are learning from our guests, and that feeds into the learning repository we have,” explains Mishra. This approach ensures that Target’s advertising and merchandising strategies evolve in tandem, keeping customer needs at the forefront.

Despite its rapid expansion, Roundel remains committed to maintaining the integrity of the guest experience. “We always want to bring in the Target perspective because the guest experience should feel seamlessly integrated with Target,” says Chandan. This philosophy ensures that ads are thoughtfully curated rather than intrusive, creating a symbiotic relationship between brands and shoppers.

As retail media networks gain prominence, Target’s hybrid model—blending U.S. market insights with TII’s data expertise—positions it as a formidable player. With continued investment in AI, automation, and loyalty-driven advertising, Roundel is set to remain a key revenue driver for the retailer while keeping guest engagement at its core.

For advertisers, the message is clear: if you want to reach engaged, high-value shoppers, Roundel is an increasingly indispensable partner. And with TII shaping the data and strategy behind it, Target’s retail media future looks brighter than ever.

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