Home Ad Exchange News Amazon Tests Data And Media Bundling As It Targets New Marketer Budgets

Amazon Tests Data And Media Bundling As It Targets New Marketer Budgets

SHARE:

amazonbundleimgDespite Amazon’s legacy as a giant digital walled garden, marketers say it’s in the early stages of a major expansion into an ad platform model.

Specifically, Amazon is testing ways to tie together its properties to form a more comprehensive, full-funnel offer, according to multiple sources with knowledge of the early products. Amazon didn’t return requests for comment.

Some businesses rely heavily on Amazon’s advertising capabilities – which gives the ecom giant outsized influence – whereas businesses focused on branding aren’t as interested in Amazon’s paid media offerings, said Bill Burkhart, president of Wunderman Data.

“But every client we work with wants to be more like Amazon, and its use cases (for nonendemic advertisers) is growing pretty quickly,” he said, with the company pushing into video subscriptions and live streaming, grocery delivery, internet-of-things devices and even an early app store.

Amazon’s offerings have been fragmented, said one agency executive piloting Amazon ad products under an NDA. “There’s a lot going on between Twitch [the video game live-streaming network Amazon bought for about $1 billion in 2014], Amazon Prime, the main marketplace, Alexa [the voice-activated connected home device], the mobile app and desktop, but now we’re seeing things applied together.”

Another senior agency source working under NDA with Amazon similarly said that “Amazon to date hasn’t bundled its media, data and marketing services the way Google or even Facebook have.”

“That ad-oriented data science is happening in the background, though,” the source added, “and they’re developing cross-property offerings.”

Jonathan Opdyke, CEO of retail ad tech firm HookLogic, noted that Amazon is starting to make performance-driven pitches.

“Marketing dollars in general are becoming more performance-oriented,” he said. “That’s not just happening with retargeting and digital-only channels, it’s an attitude that moved up the chain.”

Amazon’s quiet inroads into holding company agencies underscores this point exactly, according to the same agency sources speaking on background.

“They didn’t spend billions of dollars assembling those pieces for fun,” said one executive. “They’re coming to us because our perspective is broader than the product retargeting and ecommerce dollars they already pretty much own, and they’re figuring out what budgets to grow into next.”

Must Read

How Programmatic Home Screen Ads Are Becoming More Standardized (And More Accessible)

How long does it take you to decide what to watch after you turn your TV on?

Nielsen’s Latest Updates Aim To Remove Bias From Its Measurement Strategy

Just in time for new TV programming to hit the screens in September, Nielsen is rolling out a few upgrades to its video measurement currency that will go live by the end of August

The Agency Black Box Is Breaking. Horizon Media’s Bob Lord Explains Why

According to Horizon Media’s Bob Lord, most agencies are trying to solve the wrong problem by obsessing over cost efficiency at a time when AI has quietly unlocked something far more valuable: the ability to become a growth partner to advertisers.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Taking A Look At Tuple, A New Entrant To The Ossified DSP Market

Tuple is entering the DSP market at a strange and tense moment for third-party ad tech. “There’s just so much animosity” between the programmatic buy and sell sides, says Founder and CEO Doug Lauretano.

AdExchanger's Big Story podcast with journalistic insights on advertising, marketing and ad tech

AppLovin’s Play To Reach Non-Gaming Advertisers

Gaming apps are filled with ads for more gaming apps. Why not other advertisers? We go inside AppLovin’s play to bring non-gaming advertisers into the fold.

Andrea Kwiatek, director of strategic partnerships at Goodway Group

Agentic AI Is A Shiny New Object, But Supply-Path Optimization Is A Reality Check

AI can help make media buying more efficient. But it’ll take some more time before AI agents are a seamless part of the modern media buying process, says Goodway Group’s Andrea Kwiatek, director of strategic partnerships.