Marketing
10 January
Microsoft makes a big move in retail media
Tech giant launches capabilities for retailers to help brands advertise onsite, across the web and in-store.

Photo by Turag Photography on Unsplash
Tech giant launches capabilities for retailers to help brands advertise onsite, across the web and in-store.
Microsoft is making a bigger move into retail media as it seeks to beef up advertising offerings for brands and retailers.
On Tuesday, the tech giant shared details on new capabilities for retailers seeking to use their first-party data for advertising on their websites, other digital channels and on in-store signs.
First launched in 2019 following an acquisition, Microsoft’s PromoteIQ is powering advertising on Sephora’s website, and is adding capabilities for Kroger’s retail media arm. With a slate of new releases, the company said it is building out a complete omnichannel retail media stack for retailers.
It comes as retail media continues to gain favor among brands and retailers for its ability to realize advantages in ecommerce marketplaces and use first-party data from purchases and loyalty programs to reach shoppers based on their actual profile. eMarketer projects retail media spend will reach $61.2 billion in 2024 in the U.S., which is nearly 20% of total digital ad spend.
Retail media has gained steam as Amazon showed how search advertising through its massive and much-visited marketplace could power a massive part of its business, and Apple's iOS changes made first-party data more valuable in targeting. A host of other retailers have launched retail media networks in the last year, but they work with technology companies to power various capabilities and access different types of inventory. Microsoft is one of those providers, and now it is looking to get bigger. It helps that the tech giant can draw on an existing ad network that powers search-related advertising on Bing, as well as its other properties. With the new capabilities, it is looking to create a single platform through which retailers can reach multiple channels.
Here’s a look at what Microsoft is announcing:
Microsoft shared on Tuesday that it will roll out a new network to help retailers offer brand advertising on their websites.
In a blog post, Microsoft announced the pilot release of the Microsoft Retail Advertising Network with the goal of helping retailers monetize inventory and drive incremental traffic to their websites. This is achieved by partnering with “hundreds or even thousands” of brand advertisers that are in the Microsoft Advertising ecosystem.
“Retailers can hit a saturation point where they’re unable to get more demand from their largest brand partners,” said Kya Sainsbury-Carter, VP of global partner at retail media at Microsoft Advertising. “This is where the Microsoft Retail Advertising Network comes in, helping retailers unlock new budget from the broader array of Microsoft Advertising brands that also sell on a retailer’s site.”
Kohl’s, the department store retailer with an ecommerce app and website, is an initial adopter of the network, Microsoft said.
Through the network, brands that use the Microsoft Advertising platform will be able to set up campaigns specifically for retailer websites, as well as on Microsoft properties and partner networks. Microsoft said it automatically matches retailers and corresponding brands, while directing interested shoppers directly to retailer websites.
Another new tool will allow retailers to use their data to help brands reach shoppers beyond their own website.
Promote IQ Offsite is a new feature that will allow retailers to use first-party data from retailers for third-party inventory on the open and social web. In February, retailers will be able to use this platform to put their first party data alongside data from Microsoft and lookalike audiences from Facebook and Instagram owner Meta for targeting.
BJ’s is already using Microsoft’s onsite and offsite capabilities for its recently launched retail media offering, called BJ’s Media Edge.
In particular, Microsoft sees potential to deploy this offering for Connected TV (CTV), which is advertising through streaming platforms. In this context, it’s worth noting that Microsoft is powering Netflix’s ad-supported tier.
“By leveraging shopper data, retailers can help brands to target and evaluate the impact of their CTV ads – a capability that’s expected with other digital media and across devices – now on the biggest screen in the house – the TV,” Sainsbury-Carter wrote. “Retailers will be able to derive actionable insights through unified reporting and attribution, an incredibly important measure whether in a boom time or in times of economic uncertainty.”
Another surface where advertisers are looking to expand digital inventory is at brick-and-mortar stores. This type of advertising connects physical and digital. In-store ads are served over the web, then appear on connected signage at point-of-sale systems and within aisles. Microsoft said it completed a proof-of-concept for an in-store offering. The company intends to launch this capability within the next 12 months.
Father's Day is expected to break records, according to NRF and Prosper Insights.
Consumer spending is expected to break records this Father’s Day, according to new data.
A forecast from the National Retail Federation and Prosper Insights & Analytics shows the following:
Father’s Day spending is expected to total $22.9 billion.
That would be an increase above the $20 billion spent in 2022, and would break the record of $20.1 billion that was recorded in 2021.
Three-quarters of consumers are planning to celebrate Father’s Day this year.
Average spending per person is expected to reach $196.23. That’s up from $171.79 last year and above the record of $174.10 spent in 2021.
“Father’s Day remains a momentous occasion for Americans to honor the important men in their lives,” said NRF President and CEO Matthew Shay, in a statement. “Consumers plan to celebrate the holiday in a big way this year, and retailers are ready to help make it special.”
Here are a few more key data points from the forecast:
Ecommerce for dad: Online is the biggest shopping destination for Father’s Day gifts, as 43% of consumers are turning to ecommerce. That’s up from 40% last year. Meanwhile, 38% will shop at department stores, up from 34% in 2022.
In the box: The survey showed 42% of consumers are interested in giving a subscription box as a gift. That’s up from 37% last year, and amounts to the highest interest since NRF began tracking the gift option in 2019.
Top demographic: People in the 35-44 age group are the “big spenders,” said Prosper Executive Vice President of Strategy Phil Rist. They’re expected to outspend other consumers by $100. The 45-54 age group is expected to see the biggest increase, with $57.04 spent.
Top gifts include clothing (55% plan to buy), a special outing like dinner or brunch (52%), gift cards (48%) and personal care items (32%).
The gift of time together: Nearly one-third plan to give a gift of experience, such as tickets to a sporting event or concert. That’s up 25% from last year, and the highest share since NRF began asking the question in 2016.