Lowe's brings retail media in-house

Lowe’s retail media network operates under the banner of One Roof Media. Fittingly, it is now bringing more of the network’s operations in-house.

The news: Lowe’s will move all operations, sales and advertising teams for its retail media network under the One Roof Media Network. With the exception of a few partnerships, the home improvement giant will no longer work with outside tech companies agencies, effective Jan. 31.

What are the exceptions? Lowe’s said sponsored search and product ads will still be powered by Criteo, while Yahoo will power offsite advertising that uses the Lowe’s network and data, such as digital out-of-home, addressable TV and connected TV.

Does this come with improved capabilities? Yes, Lowe’s also said it launched new advertising technology features for the network. These include:

• Improved first-party data tools, such as search and transaction insights that allow better targeting.
• More efficient launch of Lowes.com campaigns, including points of activation and measurement.
• Additional in-house experts that can help with search campaigns, while acting on integrated partnerships across Lowe's merchandising, marketing and operations.

Key quote: "This is the next step in becoming a best-in-class media network and delivering white-glove customer service for our brand partners," said Jen Wilson, SVP of enterprise brand and marketing at Lowe's, in a statement. "Managing these functions internally under one roof will enable us to build stronger, more compelling campaigns better aligned with our brands and customers' interests and needs, which in turn will drive increased shopper engagement and greater ROI for our advertisers."

Is Lowe’s making progress with retail media? Yes, the network launched in 2021. It currently serves more than 200 clients, such as Moen, Stanley Black & Decker and Whirlpool Corporation. Through advertising on its ecommerce site and other properties, the network helps brands connect with a customer base of more than 100 million shoppers.

What it says about retail media:

Cross-category: Much of the attention on retail media is focused on Amazon, Walmart and grocery businesses such as Instacart and Kroger. Their large assortments and well-trafficked marketplaces lend well to the advertising models. Lowe’s progress on this front is a sign that there are retail media opportunities in specific categories beyond the widest retailers. The key components are a marketplace with lots of visitors and capabilities to leverage first-party data and run advertising. What you’re selling is less important. The potential for growth into new areas of commerce is one reason why eMarketer projects retail media spend will reach $61.2 billion in 2024 in the U.S., which is nearly 20% of total digital ad spend.

Going under one roof: While retailers are the names on all of the retail media networks that launched over the last couple of years, many of them are powered by tech companies and agencies that do the lifting and provide the systems behind the scenes. But with growth, there are opportunities to build an internal team. Lowe’s is opting for this path. As others follow, it’s a big reason why retailers will look more like tech companies going forward. It begs a question: Will this give way to consolidation among tech providers as a result?