EXCLUSIVE: Koddi Says It Has Snagged Kohl’s Retail Media Business from Microsoft

Kohl’s has selected Koddi to power onsite ads for its retail media network, marking a win for 12-year-old adtech company as it aims to scoop up a broader swath of retailer clients, Koddi confirmed to ADWEEK.

PromoteIQ, which was bought by Microsoft in 2019, previously powered Kohl’s Media Network.

Neither Kohl’s nor Microsoft responded to ADWEEK’s request for comment.

The account win follows a “thorough review and evaluation of the marketplace,” according to a message sent to brand advertisers and agencies and posted on a new website about the partnership. All campaigns and accounts will be migrated to the new platform on Aug. 3, according to the website.

“With this partnership we’re able to bring our vendors new and better targeting capabilities to find your customers at the right time, increased customer engagement driven by improved relevancy and a more flexible and transparent platform built to scale with your business,” the website reads.

Kohl’s was working on its ad business with PromoteIQ prior to the 2019 Microsoft acquisition, and expanded the media network in 2022 to offer onsite ads on Kohl’s properties and offsite ads on social, display, video, and audio platforms. Last year, however, Microsoft announced that it would shutter PromoteIQ, pushing clients to use Criteo instead as part of an extended partnership.

After a review, Kohl’s ultimately selected Koddi to run onsite ads. Through the new partnership, advertisers can buy display, sponsored brand ads, and product listing ads, according to the website.

The website did not say whether advertisers could buy offsite ads using Koddi, but it emphasized that onsite media is the platform’s primary focus.

Kohl’s has over 65 million active customers, over 30 million loyalty program members, and 20 million app users, according to a Kohl’s Media Network pitch deck from February.

Revamping its RMN could be a valuable revenue source for Kohl’s amid steadily declining sales and store closures. The company reported a 4.1% drop in year-over-year sales during its last earnings call in May.

Koddi’s win comes at a time of increased competition among retail media adtech companies, as smaller competitors like Kevel, Moloco, Pentaleap, and Topsort vie for a larger share of the market that has long been dominated by Criteo, CitrusAd, and, prior to its demise, PromoteIQ.

Koddi established itself in the space by working with commerce media clients primarily in the travel industry, and has branched out to other categories over the last couple years. Its website currently lists case studies with Atelier de Hoteles, Wyndham Hotels and Resorts, and Omni Hotels and Resorts, as well as unnamed grocery, auto, sports apparel, and food delivery businesses.