Macy's goes where media buyers buy with Amazon partnership

Macy's Media Network announced a strategic partnership with Amazon Retail Ad Service on an unspecified date this fall, marking the first major retailer collaboration with Amazon's advertising technology product since its January 2025 launch, according to Adweek. The partnership enables advertisers to purchase sponsored product advertisements directly on Macy's ecommerce website through Amazon Ads' platform and retail advertising firms.

According to Michael Krans, Macy's vice president of retail media, the arrangement represents a "complementary" addition to the retailer's existing advertising technology infrastructure, which includes partnerships with Criteo. The integration addresses a fundamental challenge in retail media by providing brands direct access to Macy's advertising inventory without requiring interaction with Macy's sales representatives or internal technology systems.

"We want to be where media buyers want to buy," Krans explained in the Adweek report. The partnership leverages familiar workflows for advertisers and their technology partners, streamlining the ad-purchasing process through Amazon's established advertising ecosystem.

Amazon introduced Retail Ad Service in January 2025 at CES, positioning the cloud-based technology as a comprehensive solution for retailers seeking to monetize their digital properties through sponsored product advertisements. The service operates on Amazon Web Services infrastructure, inheriting the cloud platform's security architecture while enabling retailers to maintain control over their data within their AWS accounts.

The technology processes contextual information including search queries and product attributes to serve relevant advertisements across three primary areas: search results pages, product detail pages, and browsing pages. Machine learning models trained on shopping signals facilitate contextual advertising delivery, ensuring shoppers complete purchases within the retailer's online store rather than being redirected elsewhere.

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Privacy and data protection measures

Data privacy concerns have represented significant barriers for retailers considering Amazon partnerships, given the e-commerce giant's competitive position in the retail marketplace, as noted in the Adweek coverage. Krans addressed these concerns directly, confirming that Macy's will not share personally identifiable customer data with Amazon through the partnership.

Some transaction data will flow to Amazon through AWS clean rooms to support sales attribution capabilities, but the arrangement includes specific protections for customer information. "We have a lot of confidence in what we've arranged with Amazon RAS so that we are being very protective of any customer data," Krans stated to Adweek.

The clean rooms technology enables measurement and attribution analytics while maintaining data separation between the companies. This approach addresses retailer concerns about data sharing with a major competitor while providing necessary functionality for advertising campaign optimization and performance tracking.

Market dynamics and competitive landscape

The partnership emerges amid intensifying competition within the retail media advertising technology sector. Smaller players like Koddi, Mirakl, and Topsort are applying pressure to incumbents like Criteo, creating opportunities for new entrants like Amazon's retail advertising service.

Commerce media, which includes retail media networks, demonstrated strong growth in 2024 with revenues rising 23% to $53.7 billion. This growth trajectory reflects increasing advertiser interest in leveraging retailer data for privacy-compliant audience targeting as third-party cookies become obsolete.

Amazon initially beta-tested its Retail Ad Service with three e-commerce businesses: Party-supply retailer Oriental Trading Company, health and wellness store iHerb, and Asian supermarket Weee!, according to the Adweek report. The addition of Macy's represents significant validation for the platform, given the department store chain's substantial market presence and established retail media operations.

The timing aligns with broader industry trends toward platform consolidation and technology integration. According to Paula Despins, Vice President of Ads Measurement at Amazon, the service helps retailers "enhance their shopping experience with highly relevant advertising that guides customers through the shopping journey, helping their shoppers with product discovery and making informed purchase decisions."

Technical implementation details

Amazon Retail Ad Service incorporates real-time data about product availability and pricing, combined with contextual signals such as shopper search queries and browsing behavior. The system automatically optimizes advertisement placement and targeting based on machine learning algorithms trained specifically on shopping and commerce signals.

The service currently targets multi-brand retailers in the United States with operational e-commerce sites or applications. Amazon has indicated expansion plans but has not announced specific timelines or additional markets for the service rollout.

For Macy's, the implementation will begin with a pilot program scheduled for sometime this fall, though specific start dates remain unconfirmed. The phased approach allows for testing and optimization before full-scale deployment across Macy's digital properties.

Industry implications and competitive dynamics

The partnership represents Amazon's strategic expansion beyond its own marketplace into broader retail advertising technology services. This move potentially reshapes competitive dynamics within the retail media landscape, particularly as it provides Amazon access to advertising inventory beyond its own properties.

For Macy's, the collaboration offers access to Amazon's extensive advertiser network and established programmatic advertising infrastructure. The retailer can leverage Amazon's technological capabilities while maintaining control over its customer relationships and data.

Broader retail media context

The partnership announcement coincides with significant developments across the retail media sector. Amazon's broader advertising technology expansion includes recent consolidation of first-party advertising inventory across multiple owned properties, demonstrating the company's commitment to comprehensive advertising solutions.

European digital advertising reached €118.9 billion in 2024, with retail media serving as a key growth driver. On-site retail media spending grew 22.2% to exceed €10 billion across European markets, indicating sustained momentum for retail advertising platforms.

Industry analysis suggests over 90% of advertisers now partner with retailers to access first-party data, with brands working with 4-6 retail media networks doubling in 2025. This diversification strategy among European advertisers demonstrates clear market demand for multiple retail media partnership options.

Financial and operational considerations

Macy's operates 508 stores across the United States with annual revenue of $25.3 billion as of January 2023, according to Wikipedia. The company's retail media network represents a growing revenue stream as the traditional department store industry faces ongoing digital transformation challenges.

The partnership with Amazon provides Macy's access to advanced advertising technology without requiring significant internal technology investment or development resources. This approach aligns with broader industry trends toward platform partnerships rather than proprietary technology development.

Amazon's advertising business operates at a $69 billion annual revenue run rate, with significant contributions from retail media capabilities beyond its own marketplace. The expansion into third-party retailer partnerships represents a logical extension of this successful advertising infrastructure.

Implementation timeline and next steps

According to Celeste Donahoe, global head of Amazon Retail Ad Service, Macy's Media Network shares Amazon's focus on "putting customers first and exploring innovative ways to connect brands and shoppers," as reported by Adweek. The collaboration aims to help brands selling in Macy's digital stores reach customers through streamlined and impactful advertising experiences.

The pilot program launch represents the initial phase of what could become a broader strategic partnership. Success metrics will likely include advertiser adoption rates, campaign performance indicators, and customer experience measurements across Macy's digital properties.

Long-term implications depend on the service's performance during the pilot phase and subsequent full deployment. The partnership's success could influence other major retailers to consider similar arrangements with Amazon's advertising technology platform.

Timeline

• January 9, 2025: Amazon launches Retail Ad Service at CES 2025 for retailers to monetize sites using Amazon advertising technology
• January 18, 2025: Amazon consolidates first-party ad inventory across owned media properties for display and video campaigns
• Fall 2025: Macy's Media Network announces partnership with Amazon Retail Ad Service
• Fall 2025: Pilot program scheduled to begin (specific date not announced)
• March 18, 2024: Google announces Search Ads 360 platform adds support for retail media
• July 17, 2025: Criteo and Mirakl Ads launch global integration targeting mid-to-long-tail advertisers in retail media sector

PPC Land explains

Retail Media Network: Advertising platforms operated by retailers that leverage their customer data, shopping environments, and first-party information to deliver targeted advertisements to shoppers. These networks have experienced rapid growth as brands seek access to high-intent shopping audiences and consumer data in a privacy-compliant manner. Retail media networks provide retailers with additional revenue streams while offering advertisers precise targeting capabilities based on actual purchase behavior and shopping patterns.

Amazon Retail Ad Service: Cloud-based advertising technology service launched by Amazon in January 2025 that enables retailers to implement sponsored product advertisements on their websites and applications. Built on Amazon Web Services infrastructure, the service allows retailers to display contextually relevant ads across their digital properties while maintaining control over ad placements and formats. The technology processes contextual information and uses machine learning models trained on shopping signals to deliver relevant advertising experiences.

Sponsored Product Advertisements: Digital advertising format that promotes specific products within search results, product detail pages, and browsing experiences on e-commerce platforms. These advertisements appear as native content within the shopping experience, helping customers with product discovery while driving sales for advertisers. Sponsored products represent a key component of retail media advertising, generating revenue for retailers while providing brands with access to high-intent shoppers.

Amazon Web Services (AWS): Amazon's comprehensive cloud computing platform that provides the underlying infrastructure for Amazon Retail Ad Service. The service inherits AWS security architecture, allowing retailers to manage their data within their own AWS accounts while benefiting from enterprise-level security and scalability. This infrastructure approach addresses retailer concerns about data privacy while enabling sophisticated advertising technology capabilities.

Machine Learning Models: Advanced algorithms that process shopping signals, contextual information, and user behavior patterns to optimize advertisement placement and targeting. These models automatically improve performance over time by analyzing campaign results and adjusting targeting parameters. In retail media contexts, machine learning enables more precise audience identification and campaign optimization than traditional advertising approaches.

Contextual Advertising: Advertising approach that delivers relevant ads based on the content, context, and immediate shopping environment rather than relying on personal data tracking. This method analyzes search queries, product attributes, browsing behavior, and page content to serve appropriate advertisements. Contextual advertising has gained importance as privacy regulations limit traditional tracking methods and consumer preferences shift toward more privacy-conscious advertising experiences.

Clean Rooms Technology: Secure data collaboration environments that enable companies to share and analyze data for advertising purposes while maintaining privacy protections and data separation. AWS Clean Rooms allow Macy's and Amazon to process transaction data for sales attribution without sharing personally identifiable customer information. This technology represents a privacy-compliant solution for cross-platform measurement and campaign optimization in retail media partnerships.

First-Party Data: Customer information collected directly by retailers through their own interactions, transactions, and relationships with shoppers. This data includes purchase history, browsing behavior, preferences, and demographic information gathered through direct customer relationships. First-party data has become increasingly valuable as third-party cookies phase out, providing retailers with competitive advantages in advertising targeting and customer insights.

Commerce Media: Broader category of advertising that leverages commerce data, transactional information, and shopping behavior to deliver targeted advertisements across various channels. Commerce media extends beyond traditional retail media networks to include advertising capabilities across multiple touchpoints in the customer journey. This sector experienced 23% growth to $53.7 billion in 2024, reflecting strong advertiser demand for purchase-driven advertising solutions.

Programmatic Advertising: Automated buying and selling of digital advertising inventory using technology platforms, algorithms, and real-time bidding systems. Programmatic systems process millions of bid requests daily, using data signals and machine learning to optimize campaign performance automatically. In retail media contexts, programmatic advertising enables sophisticated campaign management at scale while reducing manual oversight requirements for effective advertising operations.

Summary

Who: Macy's Media Network partnered with Amazon Retail Ad Service, with key executives including Michael Krans (Macy's vice president of retail media), Paula Despins (Amazon Vice President of Ads Measurement), and Celeste Donahoe (global head of Amazon Retail Ad Service).

What: A strategic partnership enabling advertisers to purchase sponsored product ads on Macy's ecommerce website through Amazon Ads' platform and retail advertising firms, complementing Macy's existing advertising technology infrastructure.

When: Partnership announced for fall 2025 pilot launch, with specific start date not yet confirmed. Amazon Retail Ad Service originally launched in January 2025.

Where: The partnership targets Macy's digital properties and ecommerce website, serving advertisers in the United States retail market through Amazon Web Services cloud infrastructure.

Why: To simplify the ad-buying process for brands seeking access to Macy's advertising inventory without requiring direct interaction with Macy's sales representatives, addressing intensifying competition in retail media advertising technology and advertiser demand for streamlined purchasing workflows.