MIAMI — When it comes to the “GAFAN” Goliaths of digital media, Amazon has been duly noted as one of the bigger threats to traditional, linear media. Indeed, as Gordon Borrell said in his opening keynote at Borrell Miami 2023 on Monday, some $37.8 billion in ad dollars was attributed to Amazon as of January.
But, is Amazon a foe to broadcast radio or television or instead perhaps a potential partner for reaching local ad buyers in the best most efficient way possible?
It’s an intriguing question, as legacy media struggles to overcome the rise of local digital and groups such as the NAB seek Congressional legislation that would give a shot in the arm to local newspapers and other heritage news sources.
At Amazon, there’s a plan to reach local ad buyers that has made Samir Janveja, Head of Channel Sales at Amazon, an in-demand speaker.
Janveja is a key leader within “Team: Amazon Advertising,” formed recently to create advertising experiences designed “to delight customers and deliver meaningful results.” Speaking at Borrell Miami, Janveja described how the team is working with media companies to help local businesses leverage Amazon’s insights, reach, and premium entertainment properties — from music to streaming — to reach the right audiences in the right places, both on and off Amazon.
Before Janveja took the stage, Simulmedia CEO Dave Morgan took a moment to put Amazon’s position in the local advertising marketplace in perspective. “Video content to Amazon is the ‘free toaster,'” he said, saying it was a tertiary business with adjacent revenue opportunities.
With Amazon here, and not going anywhere, legacy media should research the competition, Morgan said — including Janveja’s group. But, with Amazon coming into the local market, is working together the better solution?
Amazon Ads has been around for about 10 years, but for the local team, they’re just still scratching the surface, as they’ve been active for roughly 18 months.
And, as Amazon is more than a retailer, various properties allow the company to observe billions of pieces of data on the consumer, enabling an advertiser to reach consumers practically everywhere, given Amazon’s wide-ranging touchpoints.
With 200 million Prime accounts globally, that’s one big starting point for an advertiser. Then, there are the 55 million Amazon Music users.
“It’s our great audience data” and the deprivation of third-party cookies that Janveja believes makes those millions of potential consumers ripe for advertising. A “privacy safe clean room,” jargon seen from companies such as NBCUniversal, is also an Amazon trait being touted to potential SMBs looking to grow their market share.
With the rise of streaming TV in U.S. homes, and a 20% rise in audio listening in the home according to Edison Research, the Amazon Alexa smart home device makes the digital client an ally of AM and FM radio. At the same time, the Amazon Fire Stick brings local television to viewers who may be cord-cutters or cord-nevers.
That said, Amazon sees its Freevee ad-supported live streaming service as a “local” solution, too. And, that could be difficult to overcome for some television industry ad sales professionals who don’t believe it offers the same advertiser benefits as local broadcast TV.
“Streaming TV allows you to layer on first-party and third-party segments,” Janveja told attendees, stressing the effective targeting and reach of the “intended audience” Amazon can present.
Thus, the future may take some adjusting to Amazon’s role today as a competitor that nevertheless can boost broadcast radio and TV’s in-home use further, resulting in great advertising opportunities for both the digital goliath and the legacy linear media that continue to need advertiser support for their long-term survival.
