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Report: Amazon and Apple find Madison Ave. a tough sell

  • "It's almost like going into a room and them putting a gun to your head and showing you your future," says an exec at ad giant GroupM about Amazon's (AMZN) ad sales approach. Another industry exec talking with Ad Age says Amazon's lack of a personal touch when courting Madison Ave. hurts its success.
  • After interviewing "a dozen people close to the companies," Ad Age suggests both Amazon and Apple (AAPL) are experiencing growing pains as they try to grow their ad ops. While advertising is largely a sideshow for Apple - Tim Cook has said iAd's main goal is to help developers make money - Amazon wants to use its oceans of data to mount a challenge to 800-lb. gorilla Google, as well as drive more e-commerce activity.
  • Nonetheless, Amazon has been cautious about sharing transactional data with ad agencies. One exec says Amazon hasn't agreed to a request to "divulge data about what's in shoppers' carts to inform ads." Another suggests the company could be more proactive in providing case studies.
  • Last year, eMarketer estimated Amazon had 2012 ad sales of $609M, and forecast 2013 sales of $835M.
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Comments (2)
  • Hiro Hara
    , contributor
    Comments (140) | Send Message
     
    "Amazon's lacks of personal touch" and probably of the creativity. They are all about merchandize and delivery - "cheap". The concept of value creation by advertisement and marketing is clearly an antithesis to Amazon's sales growth strategy. Almost any dumb salesmen can sell stuff "cheap". True salesmanship is to be able to sell it even high and provide satisfaction to the customers even though knowing the stuff was expensive. This concept is not in Amazon's blood.
    6 Mar 2014, 10:24 AM Reply Like
  • Hiro Hara
    , contributor
    Comments (140) | Send Message
     
    As for Apple, until recently, they have never been focused on selling other company's products. For that matter, they have little idea how to advertise other products or services. Only thing they have had going is the App store and iTune service portal. I can't see Apple traffic controlling the App Store contents. Recent revelation that Apple's platform is not as secure as most of us thought it was does not help the new portal development for secure shopping and payment.
    6 Mar 2014, 10:43 AM Reply Like
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