Costco undeniably has the best rotisserie chicken. That’s just a fact—and now that we’ve gotten that out of the way, let’s get to the news…
Yahoo DSP and Costco have announced a new partnership, allowing advertisers to reach and engage Costco shoppers across the open web. Through the partnership, Yahoo DSP customers can now target Costco’s over 80 million cardholders (members).
According to the announcement blog post, audiences can be segmented into groups like “Frequent Shoppers,” “Tenured Shoppers,” and “Category Shoppers” to power more tailored campaigns.
With access to Costco’s audience and shopping behavior data, Yahoo DSP users can also improve measurement and campaign optimization.
Why This Matters:
As traditional identifiers erode, retailer data is becoming even more valuable to advertisers. Yahoo DSP already offers cookie- and ID-free solutions like Yahoo ConnectID and Next-Gen, but expanding its audience segments with retailer data—like this new Costco integration—further strengthens that approach.
For Costco, the partnership is another step in monetizing its highly valuable audience data. Over the past year, the company has been steadily building its retail media presence, and this move brings its audience data into one of the most widely used DSPs.
Experts React:
According to Beth Gross, Senior Director of Global Commerce Media at Yahoo DSP, and the author of the blog post that announced the partnership:
“Through this collaboration, Costco and Yahoo DSP are creating new opportunities for brands to connect with Costco members beyond its owned and operated platforms. Advertisers can now engage shoppers with relevant, omnichannel experiences, helping members discover products they’re most interested in.”
Our Take:
Costco actually has a weirdly in-demand shopper base. As CNBC reported in 2023, “rich people love Costco,” and the typical Costco customer is younger and has higher incomes, according to an analysis from Coresight. That makes its audience not just large, but pretty valuable for advertisers looking to reach affluent and engaged consumers.