https://www.vox.com/recode/2022/11/10/23450349/amazon-advertising-everywhere-prime-sponsored-products
In class, we discussed Amazon
as a destination for digital advertising.
Reading this article, I found the size and scope of Amazon's ad unit to
be quite astounding, especially the quote that says "Amazon's ad revenue
surpassed the money it makes from Prime, Prime Video, and its other audio and
e-book subscriptions combined."
It is interesting how vast a
portfolio of advertising placement Amazon has; in addition to ads on the site
when shopping on Amazon, there are ads on digital prosperities such as Twitch,
advertising in digital video content (including Thursday Night Football), and
then on top of that, advertising placement on physical boxes sent out by
Amazon.
Amazon is a company known for its
leadership principles
(https://www.amazon.jobs/content/en/our-workplace/leadership-principles) - and
at the top of the list is that they are "customer centric." The
other business units - Prime, Prime video, audio, and e-book subscriptions are
just that: customer centric. These are all areas of the business meant to
attract and retain customers. Advertising, however, is historically not customer
friendly, as most people don't like ads. The article highlights this
struggle as it described friction between the ad division and the customer
experience division.
However, given the huge
profitability of the Ad Unit, it seems likely that this business will only
continue to grow. It will be interesting to see if "Customer
Centric" continues to stay as the top Leadership Principle as this growth
continues.
(Additional link: https://advertising.amazon.com/solutions/industries/automotive-marketing - an interesting link that shows how Amazon positions it to advertisers in different industries, in this case the automotive industry)
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