Target is hitting the reset button on its creator strategy amid a high-stakes turnaround plan spearheaded by new CEO Michael Fiddelke. It came to light last month that the big-box store would wind down an affiliate creator program introduced in 2023, stirring some confusion and frustration among partners.
“I think, in general, transitions can be disruptive for some of our creators. This was particularly disruptive,” said Target Chief Digital and Revenue Officer Sarah Travis in an interview with Marketing Dive. “Our focus has been and will be on building a stronger and more future-ready model, and I’m confident that we’re putting that in place.”
Moving forward, the retailer will operate two separate offerings: Target Ambassadors, powered by LTK, which launched May 1 and supports big-name influencers, and a Club Target platform designed for smaller and mid-sized creators on TikTok and Instagram that exited its pilot phase this week. The shake-up responds to changes in the social media landscape, including the rise of social commerce storefronts like TikTok Shop, and a set of company mandates intended to stem a sales slump and recapture the fabled “Tarzhay” image of wedding on-trend products with affordability.
Net sales at Target declined 1.5% year over year to $30.5 billion in Q4, an important period that includes the holidays. Two of Fiddelke’s priorities are re-establishing merchandising authority and elevating the guest experience across channels, including Target’s presence on social media. Social commerce meanwhile is forecast to surpass $100 billion in U.S. sales for the first time this year, with TikTok Shop estimated to command roughly a quarter of the burgeoning market.
“The work that we’re doing from a social commerce perspective is really helping to elevate all of those priorities that we have as a company,” said Travis. “I would argue that [social commerce is] one of the biggest shifts that we’re seeing in retail in a generation. And I would also argue that Target is built for it.”
Enter: Club Target
Club Target tweaks Target’s creator incentives to a more gamified model that doles out rewards to creators who take part in weekly challenges on TikTok and Instagram. Creators can also rack up points for driving more engagement on challenge posts and generating revenue via affiliate links.
The rewards, which increase in value as creators move through the program, include gift cards, the chance to be featured on Target’s owned social channels, access to exclusive events and, at the highest tiers, commissions on eligible items sold through affiliate links. Members are given guidelines on what to create and share, with content intended to amplify important marketing moments for Target.
“A lot of our best marketing actually comes from our guests,” said Travis. “This is about giving them a home.”
Other retailers, such as American Eagle’s Aerie, are also reworking their creator programs to better appeal to aspiring social media stars who wield small but loyal audiences and help drive algorithmic trends. About 8,000 creators are already using Club Target following the pilot, according to Travis, who added that the brand wants to "significantly scale” the business. The program’s creator base is mostly new to working with the retailer, with creators having 5,000 followers or fewer, on average, though the threshold to apply starts at 500 followers on TikTok or Instagram.
Target ultimately wants to better capitalize on existing social chatter and turn everyday fandom — think of a neighbor who excitedly documents shopping hauls — into a bigger competitive advantage.
“I think a lot of retailers are scrambling to catch up in this moment, but Target is extraordinarily well-positioned. We are already mentioned over 50,000 times a day in user-generated content and we’re the most followed big-box retailer on TikTok,” said Travis. “You can’t buy that organic presence. It took years for us to build that.”
Distinct cohorts
On the flip side of Club Target is Target Ambassadors, powered by LTK, a third-party influencer marketing platform. Target Ambassadors is invite-only and uses a two-tiered structure, with a Premiere tier carrying more robust rewards. It is initially comprised of a few hundred major LTK creators who regularly post about Target. Those who qualify for the program and demonstrate strong performance have the potential to receive better commission rates and other perks, such as monthly bonuses and campaign opportunities.
Target emphasized that Club Target is not designed as a direct pathway to Target Ambassadors, with both offerings catering to different pockets of an increasingly fragmented category.
“I would just see them as two very, very distinct cohorts of creators,” said Travis.
