Podcast Summary: Macy's Amazon Ad Network Partnership | Fast Five Shorts

Podcast: Omni Talk Retail
Hosts: Chris Walton & Anne Mezzenga
Date: September 4, 2025

Episode Overview

This episode of Omni Talk Retail explores the partnership between Macy's and Amazon Ads, focusing on Macy's decision to enable advertisers to buy media placements on its site via Amazon’s ad platform. The hosts, Chris Walton and Anne Mezzenga, discuss the implications of this move for both Macy’s retail media strategy and the broader market, reflecting on whether such a "frenemy" partnership is necessary or risky for traditional retailers like Macy's.

Key Discussion Points & Insights

1. Details of the Macy's-Amazon Partnership

• Context: Macy’s is now the first major retailer to allow advertisers to buy sponsored product ads on its site directly through Amazon’s retail ad platform, expanding Macy's Media Network's reach.
• Significance: Partnering with Amazon gives Macy's immediate access to advanced ad technology and a wider base of potential advertisers.

“Advertisers will soon be able to buy Macy's media network through Amazon... Macy's is the first major retailer to sign on to Amazon's ad product since the product debuted.” — Anne Mezzenga [00:00]

2. Risks and Motivations Behind the Move

• Short-Term vs. Long-Term Strategy:
  Chris expresses concern that Macy's decision reflects “short-term thinking,” likening it to early 2000s deals when Amazon would run other retailers' sites (e.g., Toys R Us, Target).
• Macy's Current Situation:
  Despite a better-than-expected earnings report, Macy’s is “still in trouble,” lacking the luxury of time or resources to develop a proprietary retail media solution.
• Necessity Over Preference:
  The move appears driven by urgent financial needs rather than strategic preference.

“Generally speaking, I don’t like moves like this... It’s very similar to Amazon running people’s e-commerce websites back in the early 2000s.” — Chris Walton [00:44]

“Can I fault Macy’s for it? No, because the luxury of time is not on Macy’s side.” — Chris Walton [01:39]

3. Potential Positive Outcomes for Macy’s

• Access to Superior Capabilities:
  Anne argues Macy’s doesn’t possess the expertise to build a competitive retail media platform, making Amazon the practical choice.
• Boosting Retail Media Revenue:
  Using Amazon’s established tech gives Macy’s a chance to quickly capture valuable ad dollars it might otherwise miss.
• Testing the Waters:
  The partnership could be viewed as a stopgap, allowing Macy’s to prioritize core retail strengths while reassessing the ad network approach in the future.

“Retail media is not...an area of expertise that they have. So this does, I think, make sense to me.” — Anne Mezzenga [01:58]

“Maybe this is just a short-term thing and Macy’s can focus and double down on the things that gave them that great earnings report.” — Anne Mezzenga [02:51]

4. Broader Industry Implications

• Trend-Setting:
  Chris predicts that if Macy’s finds success, other traditional retailers might follow suit, as retail tends to be an industry of herd behavior.
• Cautionary Note:
  Both hosts caution that an effective retail media operation is no substitute for a fundamentally strong retail business. The primary focus must remain on retail performance, with media revenues as a second-order benefit.

“Retailers...are creatures of habit. One starts doing it, the others start to follow.” — Chris Walton [01:51]

“Retail media...is not evidence of you having a good retail business. Having a good retail business will fuel your retail media business. You cannot put the cart before the horse.” — Chris Walton [03:23]

Notable Quotes & Memorable Moments

• “Amazon ads is potentially that bilge pump that gets those dollars in, into Macy’s.” — Chris Walton [01:22]
• “Who’s interested in buying [ads on] Macy’s standalone retail media network right now? But if you can use Amazon ads as the engine...it might be more relevant.” — Anne Mezzenga [02:18]
• “If that’s what the leadership is doing here, then kudos to Macy’s, which I can’t remember the last time I said that in any way, shape or form for Macy’s.” — Chris Walton [03:39]

Timestamps for Key Segments

• 00:00 – Overview of Macy's and Amazon Ads partnership
• 00:44 – Chris’s critique: short-term fix vs. long-term strategy
• 01:58 – Anne on Macy's lack of retail media expertise and necessity of partnership
• 03:17 – Reflection on bigger picture: retail fundamentals vs. retail media initiatives

Takeaway

While both hosts have reservations about the wisdom of ceding retail media control to Amazon, they acknowledge Macy's dire need for immediate ad revenue and lack of viable alternatives. The episode frames the deal as a short-term lifeline that could set a precedent for struggling retailers, but urges that real strength lies in building a robust core retail business.