Macy’s Strengthens Its Advertising Network With AI-Powered Rokt Partnership

Macy’s Media Network, the in-house media platform of department store Macy’s, expands its collaboration with e-commerce technology company Rokt, to provide a personalized experience for shoppers.

Macy’s is deepening its partnership with Rokt to enhance advertising opportunities across the shoppers’ retail experience on macys.com. This expansion will support the company’s key initiatives such as credit card enrollment and Star Rewards loyalty programme membership.

“Macy’s Media Network has seen increased customer engagement since launching our partnership with Rokt,” explains Michael Krans, Vice President, Macy’s Media Division, in a company release: “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, ultimately leading to increased customer engagement.”

Founded in Australia over eleven years ago, with US headquarters in New York City, Rokt operates in fifteen countries across North America, Europe and the Asia-Pacific region. The company uses AI and machine learning to enable companies to drive incremental value from each transaction by offering highly relevant offers that customers are likely to convert.

The relationship between AI and retail is collaborative and poised to be a game-changer in the industry. Be it through chatbots, personalisation or trend forecasting, the technology is helping retailers to manage inventory, promote new collections, enhance sales and improve customer service. Per McKinsey, generative AI has the potential of reaching $275 billion in operating profits in the apparel, fashion, and luxury sector, particularly if applied in merchandising, supply chains and logistics, marketing, customer service, retail operations and more. So, let’s take a closer look at how the technology is evolving the way Macy’s does business.

The Macy’s Rokt partnership: All about enhancing shopping experience

Initially launched last year, the collaboration between Macy’s and Rokt was envisioned to provide shoppers on macys.com with relevant post-purchase offers from non-endemic advertisers including Hulu, Paramount Plus, Apple TV, HelloFresh and Vogue based on customer data provided by Macy’s. The technology also recognizes when an offer is declined and serves up a different one on the shopper’s next transaction. 

The offers are displayed to shoppers during the transaction process on Macy’s website when they are most likely to respond to new offers. “Macy’s is an iconic American retailer, and we are extremely proud to partner with the incredible Macy’s Media Network team to drive increased value for its customers,” Elizabeth Buchanan, chief commercial officer at Rokt, said in a statement. “This partnership is empowering Macy’s to connect more closely with its online customers by delivering highly relevant messages from our non-endemic advertising partners at the end of the purchase when they are still in a transaction mindset, making the shopping experience more memorable, personal and impactful.”

Per Forbes, ‘This latest development is part of the company’s ongoing efforts to leverage its digital platforms and customer data to create new revenue streams. Macy’s has made a number of innovations to their media offering in the past 2 years, including launching a self-service media buying capability, shoppable display ads, upper-funnel video advertising, and a partnership with The Trade Desk.’

Macy’s posted net sales of $4.8 billion in the fiscal first quarter

Macy’s. No one would have thought the modest dry goods store opened in 1858 by Rowland Hussey Macy’s in New York would grow to be one of the largest, most popular department stores in the world. Today it is an omni-channel retail organization, operates stores, websites and mobile applications. The company sells a range of merchandise such as apparel and accessories for men, women and children; cosmetics; home furnishings; and other consumer goods. 

Macy’s posted net sales of $4.8 billion in the first quarter of 2024, down 2.7 per cent versus the first quarter of 2023. “Although early days, our investments in product, presentation and experience are gaining traction and reinforce our belief that longer-term, Macy’s, Inc. can return to sustainable, profitable growth.” said Tony Spring, chairman and chief executive officer of Macy’s, Inc.

Per Yahoo Finance, ‘Last year, the Macy’s Media Network generated $155 million in revenues, up from $144 million in 2022. In the first quarter of this year, Macy’s Media Network revenue reached $37 million, up 27.6 percent from last year…’

Macy’s is the only retailer to receive the National Medal of Arts, the nation’s highest award for artistic excellence awarded by the President of the United States. It is also the only retailer to reach Fortune Magazine’s list of the World’s Most Admired Companies eight consecutive times.