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Lowe’s taps Yahoo as latest retail media network partner

The news: Lowe’s is partnering with Yahoo to give advertisers on its One Roof Media Network access to more inventory, including off-site media placements, and improve omnichannel experiences, per a press release.

  • The move integrates Yahoo’s DSP and ConnectID identity solution with the retailer’s ad platform.
  • Advertisers on Lowe’s network will now be able to purchase digital out-of-home (DOOH) ads and other third-party inventory via Yahoo Member Connect.

The evolution of retail media: While retail media networks have been a popular tactic for companies looking for an additional revenue source, the advertising experience has often left much to be desired. Prior to Lowe’s partnership with Yahoo, marketers were limited to placements on the retailer’s owned and operated channels, reducing their reach and ability to connect with shoppers at multiple points during their shopping journey.

  • Walmart’s Q2 retail media network enhancements caused return on ad spend (ROAS) to increase 82.95% year-over-year (YoY). Costs per click (CPCs) fell 23.08% compared with the previous quarter.
  • The updates to One Roof Media Network should also improve results for Lowe’s brand partners, who can now deliver personalized omnichannel experiences and more accurately measure campaign results and attribution.

An uneven playing field: Retail media spend will grow 31.4% this year to $40.81 billion, per our latest Retail Media Ad Spending Forecast. But it’s been an uphill battle for any retailer not named Amazon to attract advertisers to their platform.

Partnering with Yahoo is a quick way for Lowe’s to improve ROAS and lower CPCs, but more enhancements will be needed if it hopes to match the sophistication and reach of other retail media networks.

This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.