FEATURED ARTICLE — December 14th, 2017
Amazon started as an eCommerce business selling books in 1994. Fast forward 23 years and Amazon has many billion-dollar businesses generating revenue. Whether it is third-party marketplaces sales, Amazon’s own retail sales, fulfillment by Amazon (FBA), or more recently, Amazon Web Services (AWS); each business unit generates significant revenue to drive Amazon’s success. More recently, Amazon’s advertising business has come front and center in the public eye due to its size, growth and attention from large agencies and advertisers.
Birth Announcement: Amazon Advertising
In 2008, Amazon hired Liza Utzschneider from Microsoft to build their advertising business. The idea was simple – marry eCommerce and advertising. Leverage all of the digital assets that Amazon owns to provide brands and third-party sellers with an opportunity that leads to a transaction.
“The first is display advertising across our owned and operated sites including Amazon.com, IMDb.com, DP Review, and Diapers.com (now defunct),” Utzschneider said. “The second is advertising on connected devices, including Kindle E-readers, Kindle Fire tablets and mobile, both IMDb’s mobile apps and the Amazon shopping app. The third is connecting with Amazon customers on the internet. And the fourth area, which I’m very excited about, is video.”
Amazon wants to keep customers on the various platforms that they own to ensure that browsing leads to conversions/sales of products. Wired said it best in 2012 when it wrote Facebook knows who your friends are. Google knows what you’re interested in finding on the Internet. Amazon knows what you’ve bought, and has a pretty good idea of what you might want to buy next.
Amazon is, in its purest form, a data based business,...
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