Macy’s, the venerable department store chain, has tapped adtech startup Pentaleap to power its high-profile advertising partnership with Amazon Retail Ad Service, marking a significant step in the evolution of retail media networks. The collaboration enables advertisers using Amazon’s platform to bid on sponsored product slots across Macy’s website and mobile app, leveraging Pentaleap’s ad server and mediation layer to connect demand sources seamlessly while Macy’s retains control over its ad inventory.
The Macy’s-Amazon deal, first reported by ADWEEK in August 2025 and formalized by Amazon in early November that year, represents the first major department store integration with Amazon’s retail advertising technology, launched in January 2025. Pentaleap’s role, revealed exclusively by ADWEEK, involves its real-time bidding (RTB) infrastructure, which treats all demand sources equally and selects ads based on contextual relevancy and bid size. “It’s the first time the new retail media RTB is in action, and that’s what we use to bring Amazon in,” said Andreas Reiffen, CEO and co-founder of Pentaleap.
For advertisers, the setup streamlines operations dramatically. Brands familiar with Amazon Ads can now manage sponsored product campaigns for Macy’s alongside their Amazon marketplace efforts, using the same console, APIs, reporting, and measurement tools. This unified workflow eliminates the need for separate infrastructures or platform training, allowing seamless scaling to Macy’s millions of shoppers on search results pages, product detail pages, and browsing areas. Amazon’s machine learning models, trained on vast shopping signals, process real-time data on product availability, pricing, and context to deliver hyper-relevant ads.
Macy’s Media Network positions the partnership as complementary to its existing stack, particularly its ongoing use of Criteo for onsite adtech. By layering Pentaleap’s mediation on top, the retailer opens its inventory to additional demand like Amazon without disrupting current campaigns. Bloomingdale’s, also under Macy’s ownership, has implemented Pentaleap for improved contextual relevancy but remains limited to Criteo demand for now—not yet accessible via Amazon. An editor’s note from ADWEEK clarified that only Macy’s inventory is currently open to Amazon advertisers.
Michael Krans, vice president of retail media for Macy’s, emphasized the strategic fit in a statement. “The partnership helps us create a more open and flexible retail media ecosystem—one that ensures relevant ads and protects the user experience while expanding access to new demand sources that drive growth,” Krans said. He added that Macy’s has become “laser-focused” on aligning sponsored products tightly with customer needs across its sites. The timing, rolling out in early Q4 2025 for the holiday rush, tapped into peak advertising demand, drawing 175 new brands to Macy’s sponsored products shortly after launch.
Industry observers hail the move as a pivotal shift. Melissa Burdick, president of advertising platform Pacvue, noted that combining Macy’s omnichannel shoppers—who fluidly shift between online, app, and in-store—with Amazon’s ad tech enables brands to engage at key journey moments. “This marks a pivotal shift in retail media,” Burdick said, highlighting unified capabilities for scale, performance, and efficiency. For Macy’s, facing sales pressures and competition, the integration broadens its advertiser base instantly, accessing Amazon’s network of brands and agencies without operational hurdles.
Yet the partnership navigates delicate “coopetition.” Traditional retailers remain wary of Amazon’s dominance, but Macy’s structured the deal with strict data controls via Amazon Web Services technology, ensuring separation between Macy’s operations and Amazon’s core ads business. Krans underscored the goal: “I wanted to essentially remove friction from the ad-buying process” by offering advertisers an easy entry point for sponsored products on Macys.com. Campaigns through Macy’s existing network continue uninterrupted, reflecting a multi-partner strategy that avoids single-vendor dependency.
Pentaleap’s involvement underscores its rising profile in retail media. The startup’s RTB solution for onsite sponsored products, previously announced with Teads in September 2025, positions it as an enabler for open ecosystems. By mediating bids agnostically, Pentaleap helps retailers like Macy’s monetize inventory more effectively, potentially setting a template for others.
As retail media surges—projected to capture expanding ad dollars—the Macy’s-Pentaleap-Amazon triad exemplifies how tech intermediaries are reshaping the landscape. Advertisers gain efficiency and reach; retailers boost revenue without ceding control; and platforms like Amazon extend influence beyond their walls. For Macy’s, it’s a pragmatic play in a competitive arena, powering growth through open access while safeguarding the shopper experience.