Best Buy partners with Meta on ads business

First Best Buy sold plasma TVs. Now it’s selling Facebook ads.

Last week, the electronics retailer announced a tool called Social+ that will let advertisers target Best Buy customers on Facebook and Instagram.

So what? In recent years, retailers have turned their troves of first-party data into billion-dollar advertising businesses. Retail media networks are expected to account for $130 billion, or 25%, of US media ad spend by 2028, according to eMarketer.

Best Buy’s retail media offering, Buy Buy Ads, was first rolled out in 2022, joining the likes of Walmart, Amazon, and even Uber.

How does it work? Advertisers will be able to use Best Buy’s first-party data to target its customers using Meta’s automated Advantage+ AI-powered ad tool. The company intends to expand the offering to other social platforms, according to a press release.

“Our world relies on technology more than ever, and no one understands customers who use and love tech better than Best Buy,” Lisa Valentino, president of Best Buy Ads, said in a press release announcing the product. “We’re excited to launch this in collaboration with Meta. With Social+, we’ve set a new industry standard that will help our partners thrive, boost their return on investment and provide more ways to measure meaningful impact.”

In 2023, Best Buy announced a similar partnership with Roku, allowing for first-party targeting across Roku’s CTV inventory.

So what? In recent years, retailers have turned their treasure troves of first-party data into billion dollar advertising businesses. Retail media networks are expected to account for $129 billion in US ad spend by 2028, according to eMarketer.

Best Buy’s retail media offering, Buy Buy Ads, was first rolled out in 2022, joining the likes of Walmart, Amazon, and even Uber.

Growing the company’s nascent advertising business is a priority for the retailer, according to CEO Corie Barry.

“We have recently elevated the focus on our Best Buy Ads business and see fiscal ’26 as a pivotal year,” she told investors during the company’s latest earnings call. “We are investing in capabilities that we believe will unleash growth like competitive market-level self-service offerings that allow brands to manage their own advertising buys and new ad products that will expand inventory and customer reach.”