Macy’s, a well-known department store, is making a strategic move to tap into advertising budgets from brands that do not sell their items at Macy’s. This initiative is being spearheaded by Macy’s Media Network, the advertising arm of the department store, which has recently partnered with ecommerce firm Rokt to deliver targeted ads to Macy’s shoppers. This partnership allows Macy’s to display personalized offers to shoppers on their website, leveraging data tied to a transaction such as a shopper’s ZIP code, email address, and type of credit card.
Rokt, utilizing AI technology, is able to show shoppers tailored offers based on their browsing behavior and purchase history. This personalized approach aims to enhance the shopping experience for Macy’s customers by presenting them with relevant offers that may interest them. By reaching out to non-endemic advertisers—brands that do not sell their items on Macys.com—Macy’s is able to expand its advertising reach and deliver a diverse range of messages to its customers.
Michael Krans, vice president of Macy’s Media Network, highlighted the appeal of partnering with Rokt to target non-endemic advertisers. He mentioned that Macy’s does not typically allow non-endemic advertisers to purchase standard ads on its website, such as search and display formats. However, through this partnership with Rokt, Macy’s can now offer non-endemic advertisers a platform to reach Macy’s customers with relevant and engaging ads.
The concept of non-endemic advertising is gaining traction among retailers, as these advertisers often have larger budgets that stem from digital and national marketing initiatives. This presents a lucrative opportunity for retailers like Macy’s to tap into a new revenue stream and diversify their advertising offerings. Macy’s Media Network reported a significant increase in revenue during the first quarter of its fiscal year, indicating the success of its partnership with Rokt.
Elizabeth Buchanan, chief commercial officer at Rokt, emphasized the effectiveness of their technology in delivering targeted offers to shoppers. By focusing on customers who have already shown interest by placing items in their carts, Rokt can significantly increase engagement rates and drive profitability for retailers like Macy’s. The ability to tailor offers based on shopper behavior and preferences further enhances the effectiveness of Rokt’s technology in delivering personalized ads.
Macy’s is also exploring innovative ways to leverage Rokt’s technology, such as promoting Macy’s credit card as a payment option on Macys.com. By utilizing first-party customer data and real-time decision-making capabilities, Macy’s can effectively target customers who are most likely to respond to specific offers based on their browsing history. This targeted approach not only enhances the shopping experience for customers but also drives revenue for Macy’s.
In conclusion, Macy’s partnership with Rokt represents a strategic move to tap into advertising budgets from non-endemic advertisers and diversify its revenue streams. By leveraging AI technology to deliver personalized ads to shoppers, Macy’s is able to enhance the shopping experience for its customers and drive profitability for the department store. This innovative approach to advertising underscores Macy’s commitment to staying ahead in the competitive retail landscape and delivering value to both customers and advertisers.