Nordstrom’s retail media network strategy

When Nordstrom debuted its retail media network four years ago, it was one of the earliest department store chains to realize the potential revenue benefits of investing in the category. But since then, a host of players, including rival Bloomgindale’s, have expanded into the space. To stay fresh and to appeal to advertisers, Nordstrom has been focusing on adding more to its offerings. Subscribe to us on Apple Podcasts, check us out on Spotify and hear us on Amazon Music/Audible. This is our RSS feed. Tell a friend! “We have evolved from a transactional network to an experiential network,” said Aaron Dunford, VP of Nordstrom Media, speaking on the Marketer’s Brief podcast. Nordstrom started with things like sponsored product ads but has begun to “lean into how do we create an emotional connection with our customers and really share the why behind the brands that we carry,” he said. For example, Dunford said, Nordstrom offers advertisers the option of working within its Stylist Ambassador Program to create content that the chain then amplifies on its owned and paid media channels. Such ads receive double the engagement of standard content because many of Nordstrom’s stylists are influencers with their own followings, he added. Nordstrom also recently began working with Dentsu’s Tag Group after an RFP as the marketer looked for a creative partner to bolster its content. Nordstrom now works with Tag on more dynamic offerings for connected TV and brand pages. “Traditionally, media content has just been a static image that pushed across multiple channels and formats,” Dunford said. “It’s like, how can we go beyond that?” On the podcast, he also discussed the buzz at last month’s Shoptalk retail conference in Las Vegas and how Nordstrom is implementing AI as a personalized marketing tool. Despite grand forecasts, some of retail media’s growth has been clouded by measurement challenges, an issue Dunford also addressed, noting recent work by organizations such as the Interactive Advertising Bureau for networks to find a more unified point of view. “But we still have work to do,” he added, noting that each network is different in terms of what products it sells and how customers engage with those products. “I don’t think there will ever be a one-size-fits-all approach because that’s not measuring the customer performance truly,” he said. “What we need to do is just think of ways to make it easier for our brand partners to invest across multiple retail media networks.”

How Nordstrom’s retail media network has evolved and what’s next

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