Lowe’s is directly connecting advertisers to its customers. (Source: Lowe’s One Roof Media Network)
Lowe’s Cos. Inc. is the latest in a rapidly growing line of retailers creating an omnichannel advertising platform to connect brands with its customers.
The home improvement giant is launching Lowe's One Roof Media Network, a retail media service designed to provide a portfolio of omnichannel advertising services. The platform includes data-driven insights integrated with analysis of consumer behaviors and home category trends, as well as customized advertising products.
More than 100 partner brands, including Samsung, Kohler, and GE Lighting, participated in the network’s early beta tests, with limited categories and inventory. According to Lowe’s, one kitchen and bath partner achieved a 700% return on ad spend, with several vendors in the pilot seeing returns over 1,000%. As part of the next public beta phase, Lowe's will scale onsite inventory, select offsite activation partners, and ramp sales demand as brands plan for 2022.
"There's been a real shift in consumer behavior and sentiment toward home, and we know our partners are continually looking for new ways to command attention, drive relevance and overall sales," said Marisa Thalberg, Lowe's executive VP, chief brand and marketing officer. "Leveraging Lowe's deep understanding of the home lifestyle customer and real-time trends, Lowe's One Roof Media Network will serve as an extension of our partners' marketing teams, helping them develop custom, comprehensive approaches designed to deliver on their business goals."
The platform has several products currently available or under development to launch in 2022 and beyond, including ad placement on Lowes.com pages and the chain’s mobile app; sponsored editorial content on those channels; digital and social media extensions to help brands better reach their target customers; custom research and thought leadership on shopping behaviors, trends and shifts; and in-depth measurement and closed-loop reporting, including consultation for growth opportunities. The platform also offers integration with Lowe’s marketing team and brand.
In developing the network, Lowe's partnered with retail media technology and service providers CitrusAd and Criteo. The home improvement retailer is part of a quickly developing trend of retailers opening their customer bases to third-party digital advertisers, either through partnerships with retail media platforms or via proprietary networks.
For example, consumer electronics chain Best Buy recently startedenabling advertisers to use Criteo’s cross-retailer, self-service platform to reach online shoppers in the U.S. and Canada. Through sponsored products, the platform will help Best Buy customers further discover and purchase products. And Wakefern Food Corp., the nation’s largest retailer-owned grocery cooperative, recently began leveraging CitrusAd’s retail media technology for sponsored products and display ads across its desktop and mobile e-commerce sites.
Furthermore, Walmart recently rolled out a demand-side platform for suppliers and their media and ad agencies in time for the 2021 holiday season. Initially announced during the introduction of the Walmart Connect media platform in January 2021, the Walmart demand-side platform (DSP) is a collaborative effort with independent demand-side platform The Trade Desk.
Meanwhile, Target launched its Roundel ad network in 2019 as a tool for CPG brands to create personalized digital ad campaigns aimed at Target customers. At least four other big-name retailers have launched similar digital third-party ad networks in the past year: Family Dollar, Walgreens, Kroger, and CVS.
Based in Mooresville, N.C., Lowe's more than 2,200 home improvement and hardware stores.