Amazon DSP and Video Ads, HD Delivery, AVNs
Amazon Expanding Advertising through DSP and Mobile Video Ads
Our research indicates that Amazon’s DSP offering appears to be seeing more interest from brands as Amazon improves customer service and invests in a larger sales force for the service. Amazon is also having some success winning business from advertisers who do not sell products through the eTailer, as Amazon positions DSP as an awareness and branding service. We have also heard that video advertising appears to be the next major area of ad inventory available to advertisers, particularly on mobile. We have heard that it is now available to most brands following more limited tests over the past several months.
Home Depot Expanding Faster Delivery Options to Compete with Amazon
On Home Depot’s 1Q Earnings Call this week, the EVP of supply chain noted that the retailer was looking to expand their next day delivery coverage in coming quarters through a variety of distribution methods. Through the company’s direct fulfillment centers it is currently able to provide 2 day parcel shipping to over 90% of the population, with 36% able to receive next day fulfillment. This is expected to grow to 50% by the end of 2Q with a retrofit of an additional DC. Home Depot also offers same day delivery through partnerships with Deliv and Roadie for 40%+ of the US.
AVNs Delayed This Year; Amazon Focused on Funding:
Polling from our recent LiveCast event on May 9th indicated over 40% of brands had not yet started their AVNs, and for those that had, Amazon was most focused on gaining increased vendor funding in the areas of Co-Op, Freight, and Damages.
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