Ad revenue grows at Target as Roundel stays insulated from broader retailer struggles

While Target continues to contend with sluggish sales and external economic pressures, Roundel, the retailer’s ad business, seems to be a bright spot in an otherwise gloomy financial picture.

In its Q1 2025 earnings call last week, Target reported net sales of $23.8 billion, down from $24.5 billion during the same period last year. The slump comes amid mounting headwinds: consumer pullback, tariffs and of course, the fallout from Target’s decision to scale back some of its diversity, equity and inclusion initiatives. At the same time, Target has been struggling to keep pace with retail juggernauts Walmart and Amazon, as noted in last year’s holiday sales figures.

But it’s not all doom and gloom for Target. Roundel, its retail media network (RMN), has continued to grow. In the first quarter of this year, Target’s ad revenue came in at $163 million, up from $130 million in that same time period in 2024. Last year, it raked in $649 million in ad revenue, up 25% from the $522 million in 2023.

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