ORLANDO, FL: Amazon, the e-commerce giant, could soon become a truly major player in the advertising ecosystem, according to Kristin Lemkau, CMO of JPMorgan Chase & Co.
Lemkau discussed this subject during a session at the Association of National Advertisers’ (ANA) 2017 Masters of Marketing Conference.
More specifically, she suggested that Amazon – which offers solutions including product and search ads, possesses swathes of shopper data, and has a burgeoning content business – is a growing force to be reckoned with.
Amazon is “the single most important consumer company in existence today, and they’re probably going to become the most important advertising company in existence today,” said Lemkau. (For more details, read WARC’s in-depth report: The keys to great marketing, according to JPMorgan Chase & Co.)
Drilling down into Amazon’s potential strengths as an advertising platform, she quoted some compelling statistics related to its scale and user behaviour.
“The public numbers show they have 300 million users. They’ve got 65 million [users] in their loyalty program. Eighty percent of their users say they buy products once a month. Fifty-five percent of all product searches, in fact, start on Amazon,” she said.
“They sold 47,000 TVs in a single day on Prime Day and they’ve got 45,000 robots in their warehouses. So what are they? They’ve got three Oscars, and two Emmys. They have the NFL. That’s who they are.”
Estimates from Barclays, the financial-services provider, valued Amazon’s ad business at approximately $1.4bn last year. Research firm eMarketer believes this total will hit $2.4bn in 2019, making it the third-ranked digital advertising firm.
And Lemkau also reaffirmed the importance of the current “Big Two” advertising properties – namely, Google and Facebook – during her presentation at the ANA conference.
Elaborating on this theme, she reported that a key advantage of these properties involves the fact the ads they host are “based on the concept of permission”.
Said Lemkau: “If you’re searching for something, you’re going to be much more open to an ad. You’ve already expressed that you’re in a consideration set. If you’re stopping to watch something on your feed, you actually want to see it.”
Data sourced from WARC