An Inside Look at How Amazon Is Selling Its Ad Program to Buyers

Amazon has the best shot of all contenders to become a stable no.3 in the online advertising world after Google and Facebook. (Outside China, only Snapchat has a real shot at this position as well.) In the long run, Amazon may even displace Google by taking away the most profitable ad businesses from the search giant.

Digiday has obtained a pitch deck from Amazon‘s ad sales team:

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. […]

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. […]

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.

Lookalike customers based targeting is a big hit with Facebook ads. (Amongst a myriad of startups, direct-to-customer brands like Allbirds use this to grow their customer base.) A similar ad business model at Amazon is almost certainly going to shoot up like a rocket, once the company has the technology behind it nailed down.

For more, see the full pitch deck at Digiday.

​More on this topic:

​* Amazon’s Advertising Business is Growing Like Weed
​* Amazon Ads Effective, Say 60% of SMBs
​* How Walmart Can Win Against Amazon
​* Amazon Is Becoming the Greatest Threat Google Ever Encountered

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