Amazon Ads forge deal with IPG Mediabrands to revolutionize Prime Video ads

Amazon Ads and IPG Mediabrands have entered into a partnership, focusing on assisting advertisers in reaching audiences through Prime Video ads. This three-year collaboration offers brands the chance to connect with "relevant" audiences through Prime Video ads, which are set to debut on Amazon's streaming platform in early 2024. Notably, IPG Mediabrands, the media-buying arm associated with Interpublic Group, becomes the first media holding company to collaborate with Amazon Ads on this innovative venture.Under this agreement, IPG Mediabrands, home to agencies like UM, Initiative, and Mediahub, will be granted "first-look opportunities" to utilize new ad formats and content sponsorships in various regions. In return, advertisers aligned with IPG Mediabrands will receive access to Amazon's first-party shopping and entertainment insights, enabling them to create precisely targeted ads tailored for Prime Video viewers.Eileen Kiernan, the Global CEO of IPG Mediabrands, highlighted the groundbreaking opportunity this collaboration provides for clients to connect comprehensively with consumers, spanning culture, content, commerce, and shoppable experiences.The rollout of Prime Video ads is initially planned for the US, UK, Germany, and Canada, with subsequent expansion into France, Italy, Spain, Mexico, and Australia in the following year. IPG Mediabrands has committed to providing support in all these countries in 2024. Alan Moss, the Vice President of Global Sales for Amazon Ads, emphasized IPG Mediabrands' proactive approach, positioning their clients as early participants in engaging with the Prime Video streaming audience across the nine countries scheduled for coverage in early 2024. Moss also underscored the significant reach and frequency Amazon Ads aims to offer brands, positioning Prime Video as a prominent premium ad-supported service across most operating countries.

Amazon's $20.6 Billion Media Account in Global Pitch

Amazon, the world's largest online retailer, is putting its massive media account up for pitch after spending $20.6 billion on advertising and promotional costs in 2022. This figure marked a significant increase from the previous year's $16.9 billion. Procter & Gamble, once considered the world's biggest advertising spender, has fallen behind with advertising costs of $8 billion in 2023, compared to $7.9 billion in 2022 and $8.2 billion in 2021, according to its financial filings.IPG Mediabrands has held Amazon's media buying account since 2017, but the company has decided to review its options. Amazon stated, "We routinely review existing business relationships with third-party vendors and partners, and based on those reviews, may decide to solicit proposals from vendors interested in working with us." The retail giant uses a variety of advertising channels, including sponsored search, social and online advertising, third-party customer referrals, and television advertising, to attract buyers to its platforms. Amazon is also a significant player in the ad space, ranking as the world's third-largest digital advertising platform, behind Google and Meta. In the June quarter, its advertising services grew by 22% to reach $10.68 billion.