The retail media market is shifting from fragmentation to consolidation. Macy’s recent choice to work with Amazon Retail Ad Service, while still competing on retail, offers a clear case study in strategic coopetition. The move shows how major retailers can accelerate advertiser acquisition and lift credibility without ceding long-term control.
Driving Advertiser Growth and Credibility
Amazon Retail Ad Service is a turnkey ad offering that brings Amazon-grade ad tech, demand access and buying simplicity to partner retailers. For Macy’s Media Network, which includes Macy’s, Bloomingdale’s and Bluemercury, the partnership delivered immediate scale: roughly 175 new brands signed on soon after launch. The reason is simple. Many advertisers already buy media through Amazon. Offering an easy route into Macy’s inventory through a familiar platform lowers friction, expands reach and validates the retailer as an ad destination.
Managing the Collaborative-Competitive Balance
Partnering with Amazon raises obvious concerns about data security and competitive exposure. Macy’s secured internal buy-in by setting strict guardrails. Amazon provided assurances on data separation and the relationship was implemented with non-exclusive ad-server options so Macy’s did not become dependent on a single provider. The partnership was treated as a program to be overseen, measured and adjusted rather than a permanent handoff of capabilities.
Implications for the Retail Media Future
This case reflects how retail media is maturing. Networks must show advertiser reach, measurement, and tech sophistication to win budgets. As dozens of networks compete for marketer attention, some retailers will choose partnerships that speed growth and add credibility. Others will double down on in-house solutions. Expect more deals that blend competition with cooperation.
- Audit which advertisers you cannot reach today and identify partners that fill those gaps.
- Keep first-party data controls and require transparent measurement terms.
- Favor non-exclusive tech arrangements and phased pilots to preserve flexibility.
- Set short-term KPIs for advertiser adoption and clear governance for data sharing.
Macy’s example shows that well-structured coopetition can rapidly grow an ad business while maintaining strategic control. For retailers seeking scale, the right partner and the right safeguards can be a practical path forward.
