How Macy’s Sells Advertising on Its Retail Media Network

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  • Macy’s has a growing advertising business through its digital and physical properties.
  • A recent 30-page presentation shows Macy’s Media Network’s pitch for online and in-store advertising.
  • Macy’s argument is that it combines data from buyers who own its loyalty program with ad targeting tools.

Macy’s is running more and more ads trying to get a bigger slice of marketers’ budgets.

The retailer quietly launched a retail media network last year, and CEO Jeff Gennette has said he’s raising tens of millions of dollars.

Macy’s Media Network combines its loyalty program, Star Rewards, with digital and physical advertising tools that allow brands to use Macy’s buyer data to target people as they shop.

According to a pitch deck obtained by Insider that Macy’s presented this summer, these formats include:

  • Ads on its site and app, including personalized landing pages;
  • Digital advertisements in social media and by electronic mail;
  • And in-store and other advertisements like in a jumbotron outside its flagship store in Herald Square in New York City.

Beauty and clothing brands including Estée Lauder and Ralph Lauren and others like Harry’s and HelloFresh have used Macy’s retail media network, according to the deck.

Brands can purchase Macy’s ads through its internal team of 40 people who manage sales, account management, operations and analytics, or through external ad technology providers like Criteo, said Melanie Zimmerman, vice president of Macy’s Media Network.

US retail media ad spending is expected to reach $ 31.5 billion in 2021, up 53.4% ​​year-over-year, and will exceed $ 50 billion by 2023, according to eMarketer. Walmart, Target, CVS and more recently Lowe’s and Albertsons have also created advertising businesses to take advantage of the growth in online shopping and offset declining retail margins.

Macy’s has touted its sites as strong advertising platforms because it prioritizes e-commerce. The company is also facing pressure from activist investors to part with its e-commerce business. It recently expanded its retail network to include Bloomingdale’s and announced it will introduce an online marketplace next year with third-party merchants.

Melissa Burdick, co-founder and president of corporate advertising platform Pacvue, said Macy’s has become a must-buy for some of her company’s fashion brand customers after seeing strong results on her platform.

Macy’s differs from other retail media platforms in that it allows campaigns to be personalized based on creative performance, said Elizabeth Marsten, senior director of strategic market services at advertising agency Tinuiti, whose customers have also used Macy’s Media Network.

Here’s how Macy’s presents its advertising inventory in a crowded media landscape:


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