Roundel’s Second-Price Auction: A Key Milestone In Retail Media’s Expansion to Commerce Media

Retail media spending surged by 23% YoY last quarter, and there’s no sign of it slowing down. On top of that, according to our 2025 State of Retail Media report, marketers currently working with an average of 6 retail media networks (RMNs) today are planning to nearly double that number to 11 by year-end. While this rapid growth is promising, it also brings new challenges that can slow down progress. This is where channel maturation becomes critical—it helps ensure that growth remains steady and that marketers can continue to capitalize on emerging opportunities.

One key area of maturation is the standardization of core campaign elements—creative formats, audience targeting, measurement and analytics, and ad placements—which serve as the connective tissue of retail media. As these elements become more standardized, marketers can execute strategies across multiple networks with greater agility and confidence, making it easier to allocate budgets and optimize outcomes.

Bidding dynamics in auction-based media channels, like retail media, are still one of the areas lacking consistency across RMNs. This is why one of the largest RMNs, Target’s Roundel™ Media Studio has made the important move to standardize its inventory by adopting a second-price auction model. It’s not only an exciting opportunity for marketers who buy Roundel inventory, but also a significant signal of continued industry-wide standardization.

Understanding the second-price auction model

In a traditional auction, like for cars or antiques, the highest bidder wins and pays their bid price. 

For example:

• Advertiser A bids $1.00
• Advertiser B bids $1.20
• Advertiser C bids $1.50

In a traditional auction, Advertiser C would win and pay $1.50—the price they bid.

In a second-price auction, however, the highest bidder (Advertiser C in this case) still wins the placement, but the winning bidder only pays the price based on Advertiser B’s bid.

Some may ask why would ad publishers offer second-price auctions if the buyer is willing to pay higher?

This model ensures cost efficiency by preventing advertisers from overpaying for inventory. It also encourages fair competition, as the winning price reflects the next closest bid, not the highest. For RMNs, it fosters trust and credibility by offering a transparent pricing structure that helps minimize friction and encourages consistent participation from advertisers.

Though it may seem like a minor change, Roundel’s adoption of the second-price auction is a significant step in retail media’s ongoing evolution, enabling the seamless integration of multiple touchpoints along the customer journey—ultimately paving the way for commerce media.

Second-price auctions and the shift toward commerce media

The concept of commerce media extends beyond the bounds of retail media, integrating other marketing channels like search and social to engage consumers at every stage of the journey—from awareness to purchase. As retail media matures, its potential to connect with consumers across multiple touchpoints continues to grow. According to our State of Retail Media Report, 59% of brands now report that full-funnel strategies are becoming more effective in driving customer engagement across the entire journey.

Roundel’s shift to a second-price auction represents another important piece of this broader shift toward commerce media. By standardizing more campaign elements across networks—like auction dynamics—RMNs enable brands to integrate their strategies seamlessly across multiple touchpoints, creating a more cohesive approach to consumer engagement.

Retail media’s growing ability to touch consumers at multiple stages of the journey complements the commerce media model. Advertisers are no longer confined to siloed channels. Instead, they can leverage consistent data and insights across different networks, platforms, and stages of the funnel. As brands focus more on commerce media and full-funnel strategies, tools like the second-price auction contribute to a more unified, holistic approach to marketing.

Roundel + Skai: a partnership for efficient, transparent, and commerce media-driven campaigns

By combining Roundel’s second-price auction model with Skai’s commerce media platform, brands can ensure their retail media investments are working harder and smarter. This integration enables them to reach target audiences with precision and efficiency, while also reducing costs and maximizing ROI.

This partnership allows marketers to seamlessly manage campaigns across a wide range of retail media networks, enabling a cohesive approach to both upper- and lower-funnel marketing. As retail media evolves, the power of commerce media lies in the ability to engage consumers at every stage of the journey across multiple touchpoints. With Skai’s data-driven insights and optimization capabilities, brands can monitor performance, adjust strategies, and scale campaigns effectively—staying agile and cost-effective amidst shifting market dynamics.

Ready to optimize your commerce media strategy? Let’s discuss how Skai and Roundel can help you make the most out of your campaigns.