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Nordstrom Expands Retail Media Offerings to First-Party Channels

Following a successful 2021 pilot that offered brands sponsored on-site ads, Nordstrom Media Network (NMN) has expanded to include off-site channels including paid social and display ads, YouTube video, search and shopping ads and affiliate campaigns. NMN’s programs, which generated $40 million in revenue in 2021, are designed to connect brand partners with the retailer’s 32 million customers and drive both digital performance and in-store engagement.

“Through Nordstrom Media Network our goal is to create the best experience for our customers while also giving our brands the opportunity to tell their story across platforms,” said Scott Meden, Chief Marketing Officer at Nordstrom in a statement. “We look forward to growing the program with our brand partners as we strive to create a personalized customer experience that creates more opportunities for inspiration and brand discovery.”

L’Oréal’s LUXE division, which includes brands such as Lancôme and Kiehl’s, have used NMN for several years. “Our goal in joining Nordstrom Media Network was to connect with the Nordstrom customer to share the L’Oréal LUXE portfolio of brands, exciting product news, launches and exclusive values,” said Amy Wilson, AVP of eRetail Strategy, Performance and Operations at L’Oréal in a statement. “Through our partnership, we’ve grown our shared commitment to placing the customer at the core of our media partnership, which has led to great insights on how we can better reach and serve our shared consumer.”

Nordstrom’s expansion of its media offerings comes as retailers in several verticals look to monetize their customer base and enhance their ability to personalize marketing messages with media offerings of their own. In addition to veterans such as Walmart, Target and Kroger, recent retail media entrants include:

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  • Best Buy launched Best Buy Ads in January 2022;
  • Tesco launched a retail media network powered by its dunnhumby subsidiary in December 2021, and in January 2022 dunnhumby announced that a white label version of its services would be available to other retailers;
  • AutoZone debuted a retail media network in November 2021 amid increased demand for used cars;
  • Lowe’s began its One Roof media network in October 2021; and
  • Walgreens launched its Walgreens Advertising Group in December 2020.

To learn more about retail media, check out our full guide here.

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