Observed Signal · Mar 18, 2026 · Partnership · Source: Adweek · Impact: 3/5 · Sentiment: Positive
Costco Teams Up with Moloco to Boost Ad Relevance
Costco has partnered with retail adtech firm Moloco Commerce Media to improve ad relevancy on its ecommerce site as part of efforts to scale its newly rebranded retail media network, Costco Velocity. Mark Williamson, AVP of retail media at Costco, announced on LinkedIn that the collaboration will start with a beta program in the second quarter. The deal is one of several partnerships Costco is making with adtech vendors to power the infrastructure for Costco Velocity.
Costco expanding and technology-enabling its retail media network creates incremental demand and integration opportunities for adtech vendors and advertisers, but it is not a platform-level industry-shifting announcement.
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Key Takeaways & Evidence Grounding
- Costco is working with Moloco Commerce Media to improve ad relevancy on its ecommerce website.
- The partnership will begin with a beta program in the second quarter.
- The Moloco addition follows Costco’s unveiling of its revamped retail media network, 'Costco Velocity.'
- Costco is signing deals with adtech firms to power the infrastructure for Costco Velocity.
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Costco Personalization Drives $500M Digital Sales
Costco told investors on its Q3 2026 earnings call that personalized product recommendation carousels generated just under $500 million in digital sales, marking a second consecutive quarter of strong contribution from personalization. CFO Gary Millerchip said the carousels produced conversion rates roughly three times Costco’s typical digital conversion. The company reported 37% growth in website and app traffic during the quarter, double-digit digital growth in multiple categories, and membership rising 4.1% year over year to 82.9 million paid members. Costco executives highlighted investments in digital experiences, AI search growth, and targeted retention communications aimed at digitally acquired members.
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