Amazon Media Group and ProSiebenSat.1 PULS 4 arrange exclusive advertising sales alliance in Austria
It's a world premiere for Amazon: The international enterprise is having a different company take the reins of its marketing department. HORIZONT Austria was the only newspaper to obtain an interview with Philip Missler (Director at Amazon Media Group Germany) and Michael Stix (managing director at ProSiebenSat.1 PULS 4).
The Austrian marketing launch of Amazon takes place exclusively by ProSiebenSat.1 PULS 4 – the first time Amazon Media Group has teamed with an external party to exclusively sell its display advertising placements. How did it happen?
Michael Stix, General manager; P7S1P4: Internationally we have seen continuously the rapid development of Amazon’s advertising program We also knew that they weren’t yet actively selling advertising in Austria, so we reached out to discuss the possibility of working together on such an initiative. Our vision from the beginning was to perfectly combine the marketing of TV/video advertising, which we already offer, and advertising on Amazon together: imagine that a viewer sees the products on TV and search parallel for these products on his smartphone / laptop, mostly on Amazon. For the first time the advertiser gets both „worlds“ – TV and Amazon – exclusively from a single source in Austria.
And why in Austria?
Philip Missler, Director, Amazon Media Group, Germany: Until now within the DACH region, we’ve been primarily focused on growing our advertising business in Germany – but we have also seen demand from Austrian agencies and advertisers. We are always evaluating new opportunities, and this seemed to be one worth looking at more closely. There were a few ways we could go about servicing Austria – establish our own office and team there, manage the AT business from Germany, or work with the right local company that has the relationships and expertise to be effective and provide advertisers with a high level of service. We ultimately opted to work with ProSiebenSat.1 PULS 4 because we believe they are that company, and are excited to be moving forward.
Are there plans to extend this to other countries?
Missler: I can’t speak to future plans.. Right now we’re focused on making this work for us, ProSiebenSat.1 PULS 4, and our advertisers.
Why does Amazon rely on ProSiebenSat.1 PULS 4 as their webevermarkter in Austria?
Missler: As I previously noted, we’ve had interest from Austrian advertisers, and felt that if we could find the right, local company in Austria – with the relationships and expertise to be effective and provide advertisers with a high level of service – that would be a good option to consider. Based on several, extensive conversations with ProSiebenSat.1 PULS 4 we came to believe they are that company, and therefore made the decision to move forward with them.
How does the relationship look like in concrete – and the sharing model?
Stix: We can work with Austrian advertisers to offer them Amazon’s display advertising portfolio – such as across desktop, mobile display and video inventory, placements on Amazon devices, and Amazon Advertising Platform – through which Amazon connects advertisers with its customers on third party sites and apps.
How does the Amazon Media Group in Germany run and which strategies should be pursued in Austria for the marketing ?
Missler: Our goal is to be the most effective marketing platform for our advertisers, in every region we serve. So we don’t expect the strategies to be very different. In Germany we work with both agencies and advertisers on marketing programs that help them achieve their goals on our platform. Currently we are working with several global and local companies. This includes brands that do not sell on Amazon – for example, companies in the automotive and entertainment industries. For brands that do sell on Amazon, one area in which they’ve seen a lot of success is with our eCommerce Ads. These are display banners that integrate Amazon's shopping features and functionality directly within the ad unit, so, for example, Customer Reviews, Add to Cart buttons, and more. These units are highly relevant and useful for customers because it makes it easy for them to immediately take a shopping action. We typically see these ads perform 20 to 30 percent better than standard ads on our platform.
Stix: We are seeing increased interest in e-commerce advertising amongst Austrian advertisers . Now we want to work together with agencies and clients in this area, that means for us „learn, learn, learn,“ because with e-commerce advertising besides marketing budget especially additional sales budgets on the customer side come into play, for us an extremely exciting symbiosis!
How do you assess the potential and growth opportunities for e-commerce advertising in Austria?
Stix: For many customers, but also advertisers, Amazon is so far a pure e-commerce market place in Austria, but in other countries already a weighty player in the advertising marketplace. Therefore Amazon also has an enormous relevance for the Austrian advertising marketplace. The advertisers want to see results for their investment - results that will help them in the future in making informed decisions. Amazon has introduced a reporting and analysis functionality that provide advertisers with Full - Funnel campaign metrics. These range from the brand awareness to add-attributed purchases, with insights that help advertisers better understand which audiences are engaging with their products.
Thus, the "Amazon universe" including the Amazon Advertising platform on a large scale work, it also needs the cooperation with media agencies. How far have the talks started here already and how is your first conclusion on that?
Stix: We’re just starting discussions with agencies and clients so it’s still very early, but so far we’re seeing that advertisers are excited to have a new alternative to various other offers in the marketplace.
How does the Amazon Advertising Platform (AAP ) act in Austria against Google Display Network and YouTube ?
Missler: I can’t speak to other companies; in terms of Amazon Advertising Platform, it enables advertisers to reach Amazon audience segments on Amazon owned-and operatedproperties and across the web and third-party apps programmatically – including video – with relevant and actionable ads. It is run through our own, proprietary technology, and can be used in combination with our other advertising offerings or as a stand-alone. We’re increasingly seeing agencies and marketers recognize e-commerce marketing as a distinct channel – understanding it’s not just about purchases, for example, but also product search – and they’re eager to better understand and leverage that opportunity, including programmatically.
Data which is used to for the modulation on the AAP, remain in Amazon's own property. Critics say these data therefore are not comparable to other provider data. How do you see that?
Missler: Our goal is always to be the most effective marketing channel for our agencies and advertisers, through programs that deliver the best customer experiences. Amazon has spent 20 years building a robust end-to-end e-commerce, and now entertainment, platform for its customers. At the same time we have a base of around 304 million active customer accounts worldwide (active customer accounts represents accounts that have made a purchase in the preceding 12 month period.). With that we can help advertisers, to get in contact with the right audience within our customer base and through our websites, apps and devices, and also reach them over external websites and apps.
How can customers be addressed in Austria?
Stix: For this completely new cooperation and large expansion of our field of activity we rely on an own marketing team that focuses exclusively on the marketing of the "Amazon universe" in Austria , but "embedded " at the same time in our recent sales core structure to establish maximum synergies. Parallel our ProSiebenSat.1 Digital Director Klaus Bitschi will continue to support these integration of Amazon . In the first step, many agency and client meetings now take place via a personal Roadshow. Amazon Media Workshops in PULS 4 center also are in planning.
How big is the business of Amazon for ProSiebenSat.1 PULS 4? (Turnover, profit margin, team, new staff, etc. )
Stix: Unfortunately those aren’t details that we can share. But with this collaboration we not only want to learn a lot of new things, we also look on promising synergies with our core marketing business TV / video ads. This shown vision we want to implement in the coming years. Amazon's own sales team at ProSiebenSat.1 Media Austria PULS 4 will be led by Cheng - Chieh Chen in Austria . Chen has come from Microsoft Advertising and is building a team.