The Digital Platform Forges Deeper Connections Between Brands and Luxury Shoppers
Saks has introduced the Saks Media Network, an online platform for digital advertising designed to enhance the retailer’s revenues and web traffic while providing increased exposure and shopper insights for participating vendors.
After a two-month beta test involving a select group of vendors, Saks officially launched its media network on Tuesday, opening it up to the wider industry. Among the brands already utilizing the platform for sponsored ads are David Yurman, Chanel Beauty, Dolce & Gabbana Beauty and Fragrance, Akris Punto, Ramy Brook, Stuart Weitzman, Amiri, Rag & Bone, and Assouline.
“With the launch of our Saks Media Network, we are expanding our offerings for brand partners by helping their products reach the right luxury customers when and where they are actively looking to purchase,” said Kristin Maa, Senior Vice President of Growth at Saks. “Our view of the full shopping journey across the Saks Fifth Avenue digital and physical ecosystem enables meaningful, personalized customer engagement and product discovery, and the Saks Media Network is the next step in leveraging our data-driven insights and industry expertise to enhance the customer experience.”
The platform’s beta test involved a small subset of brands to gauge performance and optimize campaigns before the full launch. While it’s still early days, the company is feeling optimistic about the network’s revenue potential and noted ongoing efforts to support participating brands in understanding and leveraging the platform effectively.
Retail media networks are a relatively recent development in the industry, with several companies, including Ulta, Macy’s, Bloomingdale’s, Nordstrom, Tanger Outlets, and Simon Property Group’s Shop Premium Outlets, entering the space. Notable players like Walmart and Amazon have also capitalized on advertising revenue through similar networks.
Through the Saks Media Network, brands can place sponsored product ads and display banners on the saks.com website and the Saks app, which collectively draw over 435 million annual visits. The network boasts an ability to target specific luxury customers and personalize ads based on customer data.
The launch of the Saks Media Network represents a strategic move to enhance the customer experience by leveraging data-driven insights and industry expertise, offering flexibility in allowing brands to target ads across various stages of the online shopping journey, from homepages to product pages and editorial content.
Regarding pricing, the model is akin to Google Ads, where brands set budgets and goals for a return on ad spend, with costs determined on a cost-per-click basis by Saks’ ad tech partner, Criteo.
Participation in the Saks Media Network does not necessarily mean a reduction in advertising through other channels but rather offers an incremental opportunity for brands to amplify their reach and sales during key periods, such as Valentine’s Day.
When it comes to the appearance of ads, Saks collaborates with brands and involves its creative team in designing display ads, while sponsored ads feature no Saks creative input to facilitate quicker campaign launches. Additionally, detailed reporting is provided to brands upon completion of campaigns, offering insights into customer interaction and purchase behavior.
