Why Nordstrom is expanding its retail media network


Three years ago, Nordstrom tested running campaigns for branded advertisers on offsite platforms including Google and Meta; last year, the company ran ads on its own channels for hundreds of advertisers. Executives said the network’s revenue last year exceeded initial expectations. Nordstrom’s onsite channels include sponsored product ads and brand pages, the company noted, while offsite could offer opportunities to advertise on social media, display, YouTube and search.

Like Nordstrom, many retailers have recognized the value their customer data can bring to advertisers looking to run targeted campaigns. Retail media network growth was one of the top retail trends last year, and it shows no signs of slowing in 2022. Nordstrom’s competitor Macy’s has also been growing its media network , although discounter Dollar Tree and home improvement chain Lowe’s are developing their own offerings. Walmart, which has developed its own media network, recently revealed that it generated $2.1 billion from advertising in 2021.

According to a spokeswoman, Nordstrom plans to combine physical and digital experiences as part of its advertiser offering, which includes new ad placements on Nordstrom.com and discounter NordstromRack.com. The media network will also help drive in-store engagement and more personalized experiences for its 32 million customers, the company said. Nordstrom’s internal team is partnering with software company Criteo on the network, the spokeswoman said.

Earlier today, Nordstrom announced its fourth quarter results. Net sales jumped 23% from the year-ago period to $4.38 billion. Net income was $200 million, down from $33 million a year earlier.

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