Pitch deck: How Amazon is selling ad buyers on its growing advertising business
Amazon is ramping up its advertising pitch to agencies and brands. The company recently expanded its self-serve programmatic advertising offering so agencies can now buy ads on their own through Amazon Media Group. It also extended some of the AMG offerings to third-party sellers on the platform, going as far as to offer them discounts and incentives to advertise on the platform.
The e-commerce giant has, according to agency executives, also been growing its sales team. Chief financial officer Brian Olsavsky confirmed this during the company’s most recent quarterly earnings call, saying the growth rate for the ad sales team is faster than the head-count growth at Amazon’s other myriad business units, which averages 42 percent annually. “What we’re seeing is an accelerated growth rate in software engineers and also sales teams to support primarily [Amazon Web Services] and advertising. So, yes, the growth rate of those two job categories actually exceeded the company growth rate,” he said on the call.
Amazon’s pitch to agencies focuses on Amazon’s own power as a shopping behemoth, according to a pitch deck obtained by Digiday. Its pitch emphasizes that its data reflects how people research, consider and purchase things, not only on Amazon but also elsewhere. It’s a clear shot at other platforms like Google and Facebook — the wealth of the data Amazon has on its customers is beyond what those behemoths have. Essentially, Google has search data and Facebook knows interest levels, but Amazon has real power because it knows what people are buying and how they’re doing it. “They are taking steps to make the ad program scalable,” said one executive.
It’s an approach that emphasizes targeting at scale, across behavioral, contextual, lookalike, remarketing and demographic and geographic targeting.
Amazon has 300 million users on Amazon.com and data on each user, from where they live to what they browse and buy. Amazon is able to create complete pictures of customer data potentially better than any other platform. And it’s all data it keeps close to its chest, retailers say.
In June, Amazon also launched a self-serve platform called Advertiser Audiences, which lets brands upload CRM lists to let them audience match. The deck plays that up in a section on lookalike and remarketing targeting, telling brands that Advertiser Audience segments can reach all types of new, existing and lookalike customers.
Evidence from early case studies, according to the deck, shows that lookalike customers are four times likelier to purchase.
Here’s the full deck.
‘Pouring gasoline where it needs to be poured’: Why a DTC seafood company is rethinking its ad spend
One DTC company is moving away from Facebook and Instagram as the need to diversify media plans continues to heat up.
U.S. retail and fashion brands are cautiously optimistic about Biden’s ‘Buy American’ plan
President Biden's plan, as proposed in July, would set aside $400 billion for government purchases of American-made goods.
Marketing Briefing: Marketers and agency execs are hoping for more optimism post-inauguration
As marketers “wait with bated breath for this to pass quickly,” as one media buyer noted, there seems to be the potential for optimism.
SponsoredThe evolution of shoppable content lies in social media streams
With the physical and social aspects of shopping stripped away due to various lockdown restrictions around the globe, shoppable social media is poised to fill the void. In a recent example, Instagram launched its Reels and Shop tab for users to connect with brands and creators — and to discover products. The social media platform will […]
Why Adidas treats esports deals like media partnerships, not sponsorship deals
The versatility of esports allows for a much wider demographic than other sports and entertainment.
‘Must be a better way’: Why Mother is getting into the media business with new independent agency
The idea was born out of frustration with the current media agency landscape and more requests for integrated media and creative for new business pitches.