Target Looks to Acquire WPP's Retail Ad Firm Triad
May 23 2019 - 4:08PM
Dow Jones News
By Alexandra Bruell
Target Corp. is in talks to buy retail advertising firm Triad
Retail Media from WPP PLC, as the retailer seeks to boost its
digital advertising business, according to people familiar with the
matter.
Triad sells ad space on retail websites and other digital
properties. It also helps brands create digital ad campaigns.
The talks are preliminary and could break down, according to the
people.
WPP's digital ad-buying group Xaxis acquired Triad from
private-equity firm Rockbridge Growth Equity LLC in 2016 for
roughly $300 million, in an effort to capitalize on retailers'
growing ad businesses.
Retailers such as Walmart Inc. and Target are increasingly
selling ad space to brands, using data and insights to reach
consumers shopping online. Those companies are trying to mirror
Amazon.com Inc., which has become a big seller of ad space. The
e-commerce juggernaut is the third largest online ad seller in the
U.S. behind Alphabet Inc.'s Google and Facebook Inc. Its U.S. ad
business is expected to grow more than 50% this year to $11.3
billion, according to eMarketer.
Target recently held its own event during the NewFronts, an
annual series of pitches to ad buyers that promote digital ad
offerings for brands. The presentations typically come from online
publishers.
"Year over year, it's been a source of profitable growth for
Target," the company said of its ad business in early May, when it
rebranded its Target Media Network as Roundel. Roundel services
include using data to place ads on Target and other sites like
Pinterest and PopSugar. Nearly 1,000 marketers including Walt
Disney Co., Mastercard Inc. and Unilever PLC have advertised using
Target, the company said then.
Target, one of WPP's large media-buying clients, would likely
use Triad's talent and system to expand its ad-sales efforts.
Walmart recently announced plans to bring its digital
advertising business in-house and wind down its relationship with
Triad. Walmart was one of Triad's biggest clients.
Walmart, like Target, is investing in its advertising business.
Walmart is bringing its in-store and digital ad teams closer
together and using its data on shoppers to help sell inventory
across platforms, including on its video-streaming service Vudu.
Walmart is also planning to host an event later this month to pitch
its marketing opportunities to brands, according to Reuters.
WPP has been doing its own reorganization under Chief Executive
Officer Mark Read, meanwhile, in an effort to simplify its
operations. The company late last year said it was looking to sell
a majority stake of market-research unit Kantar Group. It also
merged several agencies, creating new agency brands, including
Wunderman Thompson and &R.
--VMLY--Suzanne Vranica contributed to this article.
Write to Alexandra Bruell at alexandra.bruell@wsj.com
(END) Dow Jones Newswires
May 23, 2019 15:53 ET (19:53 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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