Jeff Bezos, founder and chief govt officer of Amazon.com, speaks on the Nationwide Press Membership in Washington, D.C., on Thursday, Sept. 19, 2019.
Andrew Harrer | Bloomberg | Getty Photographs
Amazon’s promoting enterprise, as soon as a distinct segment a part of the corporate’s sprawling empire, is now large enough to benefit its personal convention.
Final week in Seattle, Amazon attracted roughly 400 folks to “AdCon 2019,” CNBC has realized. The inaugural two-day occasion featured the corporate’s most senior advert executives and periods to teach companies on “how to use Amazon Advertising to create connections with shoppers at key moments across the purchase journey,” in accordance with a web page for the convention on occasions website Cvent.
Amazon’s advert unit, which makes cash by charging manufacturers to advertise their merchandise throughout Amazon properties in a wide range of methods, topped $10 billion in annual income final 12 months, and eMarketer predicts that, in 2020, it should account for 10% of U.S. digital advert spending. That places Amazon third, behind solely Google and Fb, which management a mixed 60% of the market.
Greater than being a income driver, promoting is a significant revenue heart for Amazon. Whereas Amazon would not at the moment disclose its profitability, Piper Jaffray estimates the advert enterprise will surpass Amazon Internet Providers in 2021 as the corporate’s predominant revenue engine.
The invite-only convention included case research from manufacturers like mattress firm Tuft & Needle and pet meals supplier I and Love and You. There have been suggestions for reaching new prospects, methods for utilizing sponsored adverts and breakout periods on finest practices for hardlines (electronics, home equipment), softlines (clothes, linens) and consumables.
“We will share learnings and best practices that will help you plan and execute to achieve your business objectives,” the location mentioned.
Amazon is an more and more vital advert accomplice for manufacturers, now that the location accounts for nearly 40% of the U.S. e-commerce market. John Shea, the chief progress officer of Teikametrics, an organization that helps sellers promote on Amazon and a sponsor of the occasion, mentioned one of many key focus areas was serving to companies perceive how finest to direct their advert spending.
Paul Kotas, senior vice chairman of Amazon Promoting, and Colleen Aubrey, vice chairman of efficiency promoting, took questions from attendees in a Q&A session.
“This was a coming-out party for Amazon’s advertising team,” Shea mentioned.
An Amazon spokesperson declined to remark.
‘Much more advanced’
AdCon continues to be pedestrian in measurement relative to the corporate’s annual re:Invent convention for Amazon Internet Providers. AWS launched re:Invent in 2012 and now attracts greater than 40,000 folks to Las Vegas.
Nonetheless, it is a important step for the promoting enterprise, which final 12 months held a a lot smaller gathering referred to as “Rev2018” focused at advert companies, not manufacturers.
Franz Jordan, CEO of Sellics, an organization that helps Amazon sellers, mentioned AdCon was the “biggest event Amazon has ever had with real advertisers.” Sellics was additionally a sponsor.
Jordan mentioned that attendees have been principally small and medium-sized firms, as massive manufacturers are inclined to have a devoted Amazon consultant. He mentioned the occasion was helpful in understanding all of Amazon’s completely different merchandise, akin to show adverts, video adverts, and customized adverts, in addition to a brand new product referred to as Shops, which permits manufacturers to design their very own digital storefronts.
“Amazon’s ad products have become a lot more complex than a few years ago,” Franz mentioned. “So it makes sense to bring the industry together and create a platform where everyone can meet.”