Macy’s is launching a new marketing strategy and the company’s new CEO, Jeff Gennette, is taking a play right out of the digital marketer’s handbook.
Sales increased more than expected for Q2 but the company still expects an overall revenue decrease in 2017. With stores closing ad executives scrambling to save the retailer, they are attempting to overhaul the marketing department at Macy’s.
“We’re excited about the new launch of our marketing strategy in September and the new loyalty program in October,” said Gennette. The company is attempting to “re-engineer its entire marketing machine,” with a strategy that “will help our sales trend as we move through the back half of the year.”
Simplification Is The Key To Macy’s Success
Gennette says the company’s new loyalty initiative, rolling out the first week of October, has tested well with customers. He also notes that Macy’s is simplifying its promotions in an effort to make sales more targeted and compelling.
Among the company’s simplification process is the creation of new 15-second TV ad buys that focus on regional customers. This stands squarely against its 30-second national spots that have run for years.
15-second videos have become popular on Facebook, Instagram, and various other digital publishing platforms. The new plan is the work of former Toys R Us executive and new Macy’s Chief Marketing Officer Richard Lennox.
Macy’s will spent approximately the same amount of money on marketing but in a more efficient manner with a format customer’s have come to expect in 2017.
Can Short-Form Video Ads Convert To TV Ad Buys?
The real question facing Macy’s is whether or not customers are willing to view short video ads and then engage with the brand after the fact. The internet is the perfect breeding ground for quick views and impulse buys. A 15-second video placed with the right demographic can lead to big click-through-rates and increasing sales numbers.
If Macy’s is able to target the right demographic, the company may find that TV viewers who spend their time staring at their phone screens during commercials are actually willing to jump over to the company’s digital storefront.