Introducing Target+ (Target Plus)
Target is now officially in the retail media game with its new platform, Target+ (Target Plus). This is exciting news as Target joins other retail-behemoths like Amazon, eBay, and Walmart in the world of third-party marketplace advertising.
Invitation-only access for brands
Unlike Walmart and Amazon, entrance is invite-only for brands to participate. By inviting approved sellers only, Target will be able to avoid the issues we have seen in competitors that let anyone in. This strategy will ensure the products sold align to Target’s brand of providing only quality items to their customers. They are also going to manage the entire customer experience—although this can be seen as a disadvantage to sellers.
Target+ (Target Plus) vision
Target+ won’t be a separate platform; instead, its items will be integrated with the rest of the site’s products to create one ecosystem. They are incentivizing customers by allowing them to receive their loyalty perks regardless of the item purchased. One of Target’s goals for this network is to grow their online revenue through “service revenue” from third-party sellers. It will also help that with Target+ they will increase their online inventory but without the risk of holding items in stores or warehouses. They envision additional revenue growth by also driving traffic back to their stores, and equipping them to be product return drop-off points.
What does this mean for marketers?
As a top-ten brick and mortar retailer in the U.S., we are ecstatic to learn about Target’s push into the eComm marketplace world. This means more search placements opening up beyond Amazon, eBay, and Walmart, and the ability to reach a whole new audience. One thing that will be difficult for marketers is choosing which products to sell and advertise. With Target owning the customer experience, this will be a challenge due to the lack of access brands will have to their customer purchase data. The exclusivity play is unique and will be alluring to brands currently on the outside; what can they do to get in? We are ready to figure it out!
Contact Rise today for help with managing your retail media strategy.