Commexis Cast – July 24, 2018: Amazon Advertising Working Directly With Brands, Bypassing Ad Agencies

Today’s Commexis Cast discusses Amazon’s advertising working directly with some brands, leaving advertising agencies completely out of the picture.

Shareen Pathak on Digiday has an excellent write-up of the various ways Amazon is working with brands, in particular eCommerce brands, without advertising agency help. Lego in particular has found success with a direct relationship working with Amazon, even having their own landing page. According to Pathak, competitors are not able to advertise there.

Pathak spoke with Eric Heller, founder of Wunderman Commerce consultancy Marketplace Ignition, who isn’t particularly worried for advertising agencies. “I’m not sure that everything old isn’t new again.” said Heller, “I don’t think after Google we started hearing later that companies were dropping agencies.”

Our Paid Placement Specialist Jim does point out, however, that this had been going on for a while now. Google does it, Facebook does it, even HubSpot does it. But Jim is not concerned. He argues that it never works for the platform because they are so highly focused they can’t diversify the portfolio of advertising options and channels, so if someone does well they crush it, if they don’t they fail. Also, Amazon’s advertising expertise is very limited to only eCommerce, and anyone outside of eCommerce would be hard pressed to convince to go with an amazon ad rep over a comprehensive full service agency.

Today’s cast: James Van Horn (Commexis Paid Placement Specialist) and Matthew McGrorty (Commexis Videographer/Podcaster).

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