Nordstrom Expands into Advertising with Nordstrom Media Network
At Nordstrom, we are expanding our advertising opportunities for our brand partners through the Nordstrom Media Network, further building on the strengths of our digital-first platform to better serve customers and drive profitable growth. It's a natural next step in our Closer to You strategy, conveniently connecting our customers with personalized recommendations and experiences.
As part of our commitment to being a partner of choice, we have created opportunities for our brand partners to gain more visibility for their products with our highly engaged and loyal customer base. As part of this continued evolution, we're proud to tell you more about Nordstrom Media Network and how this program helps us stay closer to our customers by partnering with brands to enhance inspiration and discovery.
What is the Nordstrom Media Network?
Nordstrom Media Network is our advertising program that allows brand partners to connect directly with 32 million Nordstrom customers to drive traffic, sales and customer engagement. The program enables brands to share their brand story and advertise on our digital platforms with nearly two billion unique annual visits and through off-site digital advertising. On-site channels include sponsored product ads and brand pages. Off-site channels include paid social and display ads, YouTube video, search and shopping ads, and affiliate campaigns.
In 2019, we tested this concept with off-site campaigns for brand partners on platforms like Google and Meta. We successfully piloted Nordstrom Media Network in 2021 with on-site sponsored ads launching in Q4. In 2021, the program generated $40 million in ad revenue with hundreds of brand partners, exceeding our initial expectations.
Why did Nordstrom launch a media network?
Decades of putting our customers first, in stores and online, have brought us a highly engaged and loyal customer base. Consistent with our commitment to our customers, we can use the information we've gathered to serve up products relevant to them.
"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. "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."
Getting closer to the customer by blending digital and physical experiences is core to our strategy, and this program is no different. Nordstrom Media Network not only drives digital performance but also can connect with customers to drive in-store engagement.
How are brand partners engaging with Nordstrom Media Network?
We provide our brand partners tailored strategies to help them achieve their goals from rich storytelling to direct-response marketing.
For example, L'Oreal's LUXE division, which includes brands like Lancôme and Kiehl's, has partnered with Nordstrom Media Network for several years. The companies' shared focus on consumer centricity, elevated experiences and sustainability have long made for a successful partnership.
"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," says Amy Wilson, AVP of eRetail Strategy, Performance & Operations. "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."
What's next for Nordstrom Media Network?
This is just the start of a new way for us to connect with customers, brand partners and soon non-endemic partners we believe will be of interest to our customers. In the coming months, we plan to expand ad placements on Nordstrom.com and NordstromRack.com and improve our reporting and targeting capabilities. We'll continue to scale and evolve the program to drive profitable growth, meaningful customer connections and personalized experiences.