• by Sarah Mahoney  @mahoney_sarah, March 12, 2024

Macy’s has named Michael Krans vice president of Macy’s Media Network. He’ll take the reins of Macy’s and Bloomingdale’s growing retail media operations. Krans joins from Walmart Connect, the second largest such network, and reports to Max Magni, chief customer and digital officer at Macy’s.

Krans has also worked at Hearst and Condé Nast, overseeing initiatives that include home, beauty, and fashion campaigns.

The announcement comes as the explosive growth in retail media ad spending continues. Experts expect it to top $59.61 billion this year. That’s sparked a fierce talent battle as retailers hustle to recruit thousands of ad-savvy new hires -- few with hands-on retail media experience.

Recent research from Gartner reveals retail CMOs, already wrestling with flat marketing budgets and pressure to build digital-first marketing strategies, are on the back foot. Noting capability gaps in customer experience, strategy and digital, they’re hustling to build teams to manage and differentiate these networks.

“Our latest analysis concluded 15% of the most mature digital multibrand retail organizations had a senior marketing leader focused on retail media directly reporting into the CMO,” says Kassi Socha, a director analyst at Gartner.

More typically, the exec reported to a senior vice president of ecommerce.

However, where they’ve been hired and whom they report to matters less than how they perform in a volatile and competitive market.

“Retail marketing leaders taking on new appointments to drive growth through retail media will need to be able to quickly scale the network profitably, innovate with new offerings for their networks to keep a competitive edge, and protect their brand reputation,” Socha tells Marketing Daily via email. “And they need to ensure that the network drives short-term revenue but doesn’t disrupt the brand sentiment or customer experience long-term.”

Amazon continues to be the largest retail media network, with eMarketer estimating a 75% market share. It is also one of the few companies publicly disclosing ad revenue.

Walmart Connect comes next, working with companies like TikTok and Roku. Experts estimate there are now more than 200 retail media networks. Significant players include the Home Depot, Target’s Roundel, Instacart, eBay, Kroger, Wayfair, Best Buy, Ulta and Etsy.