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Home Depot’s Retail Media Chief Puts Suppliers At The Center

Home Depot’s Retail Media Chief Puts Suppliers At The Center

  • 21.03.2025 12:29
  • forbes.com
  • Keywords: No companies mentioned

Home Depot’s retail media chief Melanie Babcock emphasizes placing suppliers at the center of their platform. The company has invested in a proprietary tech stack to integrate onsite and offsite ads, enhancing relevance for brands and customers.

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Estimated market influence

Context

Analysis of Home Depot’s Retail Media Strategy: Business Insights and Market Implications

Key Strategy: Supplier-Centric Approach

  • Melanie Babcock, VP of Orange Apron Media, emphasizes placing suppliers at the center of Home Depot's retail media strategy.
  • Focus on improving supplier experience alongside customer-centric initiatives.

Technology Investments

  • Acquired Pentaleap, a retail media ad tech provider, to build a customized tech stack.
  • Key Metric: "Owning majority of our tech stack" to meet high service expectations (Babcock).
  • Integrated onsite and offsite advertising through partnerships with Vantage, launching Orange Access as a unified self-service platform.

Market Trends

  • US retail media offsite ad spending projected to grow by 42.1% in 2025, compared to on-site growth of 15.3% (eMarketer).
  • Industry shift: Many retailers are now prioritizing offsite capabilities as onsite inventory saturates.

Competitive Dynamics

  • Differentiated approach: Few retailers offer unified UI for managing onsite and offsite campaigns.
  • Early investment in both onsite and offsite channels positions Home Depot ahead of industry trends.

Measurement Challenges

  • Retail media lacks consistent measurement standards across platforms (Babcock).
  • Context matters: Brands have unique strategies across retail partners, affecting performance metrics like ROAS.

Long-Term Effects and Strategic Considerations

  • Proprietary tech stack: Positions Home Depot for long-term flexibility in adapting to evolving shopping behaviors.
  • Focus on supplier experience as a key differentiator in crowded retail media landscape.
  • Emphasis on industry standardization through IAB and MRC, while acknowledging the need for contextual understanding.

Conclusion

Home Depot’s supplier-centric approach, combined with a customized tech stack and unified advertising platform, positions it as a leader in the evolving retail media space. Its strategic focus on both onsite and offsite advertising aligns with market trends, while its commitment to improving supplier experience offers a unique competitive edge.