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Amazon advertising is working directly with brands now, cutting out ad agencies

“Amazon is definitely talking directly to brands,” said Heller. “I’m not sure that everything old isn’t new again. I don’t think after Google we started hearing later that companies were dropping agencies.” Heller said one big reason for Amazon to push directly to brands is it remains still a third-biggest partner, in most cases, for marketers. If Amazon wants to grow that side of its business, it needs to step up its game and go beyond agencies or small sellers on its platform. The other, perhaps more-difficult-to-untangle, problem is brands still get concerned about Amazon’s role as both an ad platform and a retail company. Brands are worried that if they spend money on Amazon advertising, they’ll also be funneling it into Amazon, which is growing its private-label business — therefore helping, in a sense, its own competitors. Kevin Packler, vp at the Tombras Group in Knoxville, Tennessee, said that he’s always telling his clients that Amazon is “neither a pure-play competitor nor a pure-play ad platform. It’s in the middle.” With that, it makes more sense, said Packler, for Amazon to step in and directly talk to brands to sell them on its value. “Whenever you look at a customized approach, I would expect Amazon would be more involved with a direct conversation than using the agency,” said Packler. As for brands, working directly with platforms goes hand in hand with marketers trying to be more data-driven and take control of their media.

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