Timing is everything for Amazon's increased ad spend
Who's on Top? 9/26-10/2
Advertiser spend on new creatives airing on national television saw big gains the week of September 26th, reaching $160 million – an increase of $43 million from the previous week. Amazon led the way this week with $8.1 million in spend on new creatives.
This is the first time we’ve seen Amazon spend a significant amount on new creatives since mid-July. This week, the majority of new creative spend from the online retailer ($4.7 million) was devoted to promoting its fashion apparel business.
In the 30 second spot, models outfitted in stylish clothing are portrayed as Amazon delivery people, carrying packages to different homes as if they are strutting down a runway at a fashion show. A large portion of spend for this ad was placed during female skewing shows like Empire and The Voice.
Amazon is already the largest online clothing retailer in the U.S. This campaign is an effort to propel the apparel portion of its business even further in order to compete with traditional brick-and-mortar stores and upscale flash sale websites. As one of the biggest players in retail, this uptick in new advertising comes at a pivotal time of the year – just in time for the winter holiday season.
The remainder of Amazon’s budget for new creatives ($3.4 million) was put towards promotion of the Amazon Echo, a voice-activated, wireless home speaker system better known to some as “Alexa”, the virtual home assistant.
The new Echo ad is designed to tug at the heart strings as well as make you laugh, all while showing the bond between father, daughter and of course, Alexa. A young girl is shown crying in her room over a recent breakup. In an attempt to cheer her up, her dad asks Alexa to play Mr. Mister's "Broken Wings." When the daughter’s ex-boyfriend then shows up outside her window, the dad asks Alexa to turn on the sprinklers and she of course complies.
This spot first debuted on September 26th, but prior to this we hadn’t seen any advertising for the Echo on national television since the first week of August. The resurgence of advertising for this product is certainly not without reason. While the Echo has been available in the U.S. since mid-2015, it has always had this market niche to itself – until now. Google recently launched “Google Home,” giving the Echo direct competition. Google Home is now available for pre-order and will start shipping in 5-6 weeks. Well timed for holiday gift giving, and giving Amazon some cause for concern.
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