More on the Google vs. Amazon Battlefront: Amazon Acquires Sizmek

News has recently broken that Amazon has officially acquired Sizmek Ad Server and Sizmek Dynamic Creative Optimization (DCO), which leaves one begging the question: What does this news mean for advertisers?

For current agencies using Sizmek, things won’t be changing much. For the time being, Sizmek will continue operating separately from Amazon Advertising. These companies will likely benefit from Amazon’s purchase of Sizmek in many ways.

Benefits of working with Amazon for your advertising needs include:

  1. Reach additional customers
  2. Improved targeting with rich data available for companies to track customer searches and purchases
  3. Ability to self-create ads and creative campaigns tailored to customer’s data
  4. Prompt conversations from other publisher sites to back brand pages
  5. Data on reporting and attribution available to all companies previously working with Amazon

Essentially, buying Sizmek is boosting Amazon’s perpetually expanding ecosystem. This expansion allows Amazon to compete with Google Advertisement who is one of the only remaining advertising services available. According to Media Post, “Sizmek was the last independent ad-serving businesses that could pretend to be a Google Challenger,” but it seems like Google has some serious competition now that Amazon is involved. That is as long as Amazon executes their acquisition successfully—unlike Facebook did with Atlas.

If all goes according to plan, Amazon will be set up to compete and maybe even surpass Google in the Advertising industry, highlighting another question: What does Amazon’s purchase mean to Google?

As Amazon eases into their Sizmek purchase, it is likely that current Sizmek advertisers will remain working with Amazon to avoid the hassle of switching companies or they will stick with them to evade working with Google. Though customers who are deeply embedded in Google may not want to move over to Amazon for their advertising needs.

Current Google clients that sell a lot on Amazon may consider moving over to Amazon for the convenience of having all of their needs bundled together. Meaning that Amazon will be paid for driving consumers to its own marketplace—it’s a win-win situation!

Although Google Travel just launched their Google Trips that seemingly surpasses Amazon’s current presence in the travel sector, Amazon remains a fierce competitor. If Amazon continues to expand their ecosystem in the advertising world and into logistics (with their plans to build a $1.5 billion “Prime Air” airport) they are on track to make a significant societal impact. According to AdAge, Google may not be Amazon’s most significant competitor; instead, the government may end up as Amazon’s biggest competitor.

Sources:

https://www.mediapost.com/publications/article/336488/amazon-acquires-sizmeks-ad-server-rocks-advertis.html?utm_source=newsletter&utm_medium=email&utm_content=readnow&utm_campaign=114070&hashid=FZzE77nw_20q-6Cu3iagnvOg7K4

https://adexchanger.com/platforms/is-amazons-sizmek-acquisition-really-a-threat-to-google/

https://adage.com/article/digital/amazon-aims-challenge-google-after-acquiring-sizmek-ad-server/2172801

https://www.nytimes.com/2019/06/02/business/google-antitrust-investigation.html?login=smartlock&auth=login-smartlock

https://www.cnbc.com/2019/05/31/amazon-buys-part-of-ad-tech-company-sizmek.html?recirc=taboolainternal

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© Ron Foth Advertising 2017