Dive Brief:
- Macy’s Media Network, the department store’s in-house advertising platform, has expanded its partnership with Rokt, an e-commerce company that uses AI and machine learning to personalize shopping experiences, according to a Thursday press release sent to Retail Dive.
- The partnership allows Macy’s online shoppers to receive offers from nonendemic advertisers during the transaction stage.
- Macy’s Media Network has seen increased customer engagement since the partnership with Rokt launched last summer.
Dive Insight:
As a result of increased customer engagement, Macy’s is working to expand its partnership with Rokt across new advertising use cases, including its credit card enrollment efforts and loyalty rewards program.
“Rokt’s unique AI-powered technology enables us to use our first-party data to provide our customers with high quality, premium offers from non-endemic advertisers post-purchase, communicating the right message at the right time,” Michael Krans, vice president of Macy’s Media Network, said in a statement. Krans joined the retailer in March. He came to the department store with previous experience at Walmart Connect, Hearst and Condé Nast.
Macy’s Media Network creates customized media strategies utilizing the retailer’s analytics, and an effort to scale the network has been underway in recent years. The network launched in the summer of 2020 as a way to generate an additional revenue stream for the retailer. By February 2021, it had already generated $35 million. For its first full year, the platform brought in $105 million in net revenue.
As Macy’s bolsters its ad network, other retailers have been building theirs as well, including Nordstrom, CVS, Best Buy, Target and Walmart. While retailers’ ad networks have seen success so far, they are working to shift from running campaigns on their own assets to offsite realms including connected TV, social media and open-web programmatic advertising.
