Ama­zon Launches a Re­view of its $1 Bil­lion Global Me­dia Buy­ing Busi­ness

The Star (St. Lucia) - - BUSINESS - By Pa­trick Cof­fee

The com­pany whose founder briefly sur­passed Bill Gates to be­come the world's rich­est man this week has placed its global me­dia plan­ning and buy­ing du­ties in re­view.

Ac­cord­ing to sev­eral par­ties with knowl­edge of the busi­ness, Jeff Be­zos' Ama­zon re­cently is­sued an RFP seek­ing a me­dia agency to han­dle pro­mo­tional cam­paigns in North Amer­ica and other mar­kets around the world.

IPG Me­dia­brands' Ini­tia­tive won global me­dia AOR sta­tus on the Ama­zon ac­count in a 2013 re­view, beat­ing out WPP's Mind­share and other un­named com­peti­tors. That pitch, how­ever, did not con­cern U.S. dig­i­tal buy­ing du­ties, which re­mained with the lat­ter hold­ing com­pany's MEC net­work.

Ear­lier this year, MEC ex­panded its re­mit by win­ning a com­pet­i­tive me­dia re­view in China and pro­ceeded to man­age a May Kin­dle re­launch cam­paign with cre­ative by Leo Bur­nett Shang­hai.

Kan­tar Me­dia re­ported in 2013 that Ama­zon spent $300 mil­lion on do­mes­tic mea­sured me­dia, and other es­ti­mates placed its an­nual mar­ket­ing bud­get around the world at ap­prox­i­mately $500 mil­lion. That num­ber has since bal­looned to $951 mil­lion per year in the U.S. alone, and Paris-based ad­vi­sory group COMver­gence now es­ti­mates that Ama­zon spends well over $1 bil­lion glob­ally.

An IPG Me­dia­brands spokesper­son de­ferred to the client for com­ment, and MEC has not re­turned a re­lated email. Ad­week also reached out to sev­eral Ama­zon rep­re­sen­ta­tives, none of whom has re­sponded to re­quests for com­ment on the re­view.

It is not clear which agen­cies are par­tic­i­pat­ing in the pitch, though sources claim most of the ma­jor hold­ing com­pa­nies will be rep­re­sented with the ex­cep­tion of Om­ni­com, which has a con­flict with Ama­zon com­peti­tor Google.

WPP CEO Martin Sor­rell has made it very clear that he sees Ama­zon as a cru­cial part of his fu­ture busi­ness. The hold­ing group re­cently ac­quired Ama­zon-only agency Mar­ket­place Ig­ni­tion and com­bined the ser­vices of its Mind­share and Pos­si­ble net­works to cre­ate an of­fer­ing specif­i­cally re­lated to Ama­zon Prime.

--- Ad­week

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