Macy’s Media Network will allow brands to buy sponsored ads on its website through Amazon’s ad console, marking a first for a major retailer.
The partnership streamlines ad buying for brands already using Amazon’s ecosystem, enhancing Macy’s ad inventory accessibility.
Amazon’s strategy mirrors its AWS model, offering its ad tech as a service to competitors, potentially setting a new industry standard.
Macy’s assures data privacy, maintaining control over its ad experience and securing business information via Amazon Web Services.
The deal is seen as a pivotal shift in retail media, with U.S. ad spending projected to reach $62 billion this year.
Macy’s Media Network will pilot a program allowing brands to buy sponsored ads on its website directly through Amazon’s ad console, news that was, as reported by Adweek. The deal makes Macy’s the first marquee retailer to adopt Amazon’s third-party ad service, giving Amazon a major foothold in a rival’s ad business just ahead of the holiday shopping season.
Go where the money is: For Macy’s, the strategy is a pragmatic move to meet advertisers where they already operate. "[We want to be] where media buyers want to buy," explained Michael Krans, Macy’s VP of retail media. The integration removes friction for brands already managing campaigns in Amazon’s ecosystem, instantly making Macy’s inventory more accessible.
The AWS playbook: For Amazon, the move is a classic execution of its AWS playbook: weaponize a powerful internal tool and sell it as a commercial service to the entire industry—even to direct competitors. The strategy creates a new B2B revenue engine and aims to establish Amazon’s ad tech as the standard rails on which all retail advertising runs.
The frenemy factor: The alliance raises inevitable questions about data privacy when a retailer gets in bed with its biggest rival. Macy's insists it will retain full control over the ad experience on its site, with its business information kept siloed and secure through dedicated systems on Amazon Web Services.
The deal is being hailed as a "pivotal shift in retail media," as Pacvue president Melissa Burdick put it. It signals a broader realignment where Amazon could become the default operating system for advertising across the entire retail industry, not just on its own site.
The wider view: This partnership lands in a retail media market that is booming, with U.S. ad spending projected to hit $62 billion this year. The big prize comes after a slow start for Amazon's service, as many retailers were initially wary of partnering with a major competitor.
