Costco is adding adtech firm Moloco to scale its retail media network, according to a report from ADWEEK. The partnership brings programmatic buying infrastructure to a club retailer that has historically run its advertising operation with a smaller, more conservative footprint than Amazon, Walmart, or Target.

The ADWEEK report names Moloco as the new adtech partner. Specific contract terms — including pricing models, revenue share, rollout timeline, and integration scope — were not disclosed in the announcement.

What does the partnership cover?

Costco runs a retail media network that sells ad placements to brand suppliers and outside marketers. Scaling such a network typically requires three technology layers:

• A demand-side platform or programmatic buying layer
• An ad server and inventory management system
• Reporting and measurement tied to first-party shopper data

Moloco, which ADWEEK identifies as an adtech firm, brings programmatic capabilities widely used by app-based and commerce advertisers. The integration gives Costco access to those systems without building them in-house.

How big is Costco's ad business today?

Costco has sat alongside Amazon, Walmart, and Target in retail media coverage, but the warehouse club's advertising operation has historically been smaller and more disciplined. The retailer does not break out ad revenue in the granular detail some competitors do, and product-feed coverage plus off-site placements have lagged peers.

The Moloco partnership signals a shift toward automated, programmatic buying — a model that Walmart Connect, Amazon Ads, and Kroger Precision Marketing already run at scale across sponsored products, display, and off-site channels.

What changes for brand advertisers?

For brands buying Costco media, the move to programmatic opens several practical changes:

• Self-service campaign management through a DSP-style interface
• Real-time bidding on available inventory
• Audience targeting based on Costco's first-party member data
• Reporting that ties ad exposure to in-club and online purchases

Media buyers already working in The Trade Desk, Amazon DSP, or comparable platforms will recognize the workflow.

Why retail media keeps licensing adtech

Retail media has become one of the fastest-growing channels in digital advertising. Retailers without large in-house engineering teams increasingly license demand-side and supply-side technology rather than build it. Macy's Media Network, Best Buy Ads, and Albertsons Media Collective have all pursued similar adtech partnerships in the past two years.

What to watch next

The ADWEEK report leaves several questions open that will shape how the partnership plays out:

• Will the Moloco integration cover only on-site sponsored placements, or extend to off-site, display, and connected TV?
• How will the platform handle closed-loop measurement tied to Costco member data?
• What take rate or revenue split applies between Costco and Moloco?

Costco's disciplined approach to vendor rollouts suggests any expansion will arrive in measured stages rather than a sweeping launch.

Bottom line for practitioners

For martech buyers, the move signals that even the most selective retailers are standardizing on third-party programmatic infrastructure. Expect more club and grocery chains to license rather than build, and watch for Costco to begin competing on the same campaign-management features that Walmart Connect and Amazon Ads already offer.