Macy's, a global giant in department store chains with over 600 physical locations in the United States, has a robust online platform that has been in operation since 1998. In 2021, they expanded by launching an online marketplace featuring a diverse array of products, including clothing, footwear, accessories, and home goods, among others.
In the wake of the pandemic, the past few years have significantly transformed the shopping behaviour of the average consumer. Online shopping, which was once just another retail channel, has become a critical component in the buyer’s journey. As a result, e-commerce sales in the United States have steadily increased from 14.2% in 2020 to 17.9% in 2023, with retail e-commerce sales expected to reach USD 1,230 billion by 2023, up from USD 792 billion in 2020. For Macy's, a retail heavyweight with primarily an offline presence, this shift presented an opportunity to capitalize on the changing consumer behaviour and tap into the thriving post-pandemic retail landscape.
Traditional channels of search advertising have reached a saturation point with brands finding it challenging to differentiate themselves from competitors. An overload of aggressive search, display, and social media tactics has led to incessant competition amongst industry rivals. In light of this, Macy’s wanted to explore new and innovative ways to acquire online shoppers with a high purchase-intent while eliminating competition in the process.
Macy’s aimed to:
In order to meet its campaign KPIs, Macy’s turned to VEVE. In 2022, Macy's partnered with VEVE to promote their brand through a premium placement on the Samsung Internet Browser. While Macy's had initially seen some success through standard inventory promotion, VEVE's native ad format Tiles featured Macy's logo on the browser's home page, proving to be a game-changer.
Given its market standing and positioning, Samsung proved to be the ideal choice for Macy’s. Additionally, leveraging VEVE's in-house operational tools and real-time ad performance optimization, Macy's was able to successfully reach over 50 million active users. This strategy helped to drive sales at a lower Cost Per Acquisition (CPA) compared to traditional search advertising channels.