John Storms, a seasoned retail executive with over two decades of experience at Target, recently brought his wealth of knowledge to Lowe’s when he joined as senior director and head of client services in 2022. Storms‘ background spans both retailers and advertisers, starting at Target in inventory planning and working his way up through a traditional merchandising path before transitioning to e-commerce. His expertise and leadership have been instrumental in driving Lowe’s ad business, known as Lowe’s Media Network, to new heights.
In April, Storms officially took the reins of Lowe’s ad business, which was previously known as Lowe’s One Roof Media Network. The rebranding reflects the company’s focus on offering new ad formats such as email, in-store audio, paid search, and direct mail to advertisers. Lowe’s boasts a reach of over 120 million unique customers and partnerships with more than 300 advertisers, showcasing the scale and impact of its ad business.
One key aspect of Lowe’s ad business is its focus on driving in-store sales, with approximately 11% of the retailer’s sales being made online. This highlights the importance of leveraging online ads to drive foot traffic and conversions in physical stores, a strategy that Storms and his team are adept at executing.
In a recent interview with ADWEEK, Storms shared insights into his vision for the rebranded ad business, how Lowe’s is differentiating itself from competitors, and the challenges of standing up an ad business in a competitive landscape. While Lowe’s did not disclose revenue numbers for its ad business, Storms emphasized the significant impact that the media network is having on driving sales and supporting broader marketing initiatives at the company.
One of the key challenges in building out a retail media business is navigating organizational complexities, particularly when the goals of the media network may conflict or overlap with other departments such as merchandising and sales. Storms highlighted Lowe’s modernization of its operating model, which has fostered closer alignment between merchandising and marketing, creating a culture of connectedness within the organization.
When it comes to measurement and metrics, Storms acknowledged the nonlinear nature of the customer journey in the home improvement space, emphasizing the importance of providing advertisers with insights into the impact of their campaigns across various channels. Lowe’s is investing in tools and metrics that offer a more holistic view of campaign performance, including metrics like lifetime value and project-time value to demonstrate the effectiveness of advertising efforts.
In an increasingly crowded retail media landscape, Lowe’s is focusing on differentiation through scale, audience reach, and unique offerings for both endemic and non-endemic advertisers. The company’s emphasis on storytelling, partnerships, and curated offerings sets it apart from competitors, while its team of experts who understand both media and retail dynamics adds value to advertiser partnerships.
Looking ahead, Lowe’s is investing in in-store ad placements to enhance the customer experience and drive conversions. Initiatives like overhead audio and potential future investments in video aim to engage customers in-store while aligning with the company’s commitment to delivering a seamless and innovative shopping experience.
Overall, John Storms’ leadership at Lowe’s Media Network is driving growth and innovation in the company’s ad business, positioning Lowe’s as a key player in the evolving retail media landscape. With a focus on differentiation, customer-centric strategies, and a commitment to excellence, Lowe’s is poised for continued success under Storms’ guidance.