Amazon is in talks to acquire Sizmek. As an advertising channel, Amazon has come so far in such a short time. Its recent move has many wondering what the implications will be in the market. But what does it mean for brands?
Much has already been speculated about last week’s acquisition bid announcement, but most of the chatter centers around the repercussions of how this acquisition might disrupt the role of the biggest publishers in the space.
At Kenshoo, we’re more focused on what it means for the brands and agencies that make up our client base. With moves like these, we ask: what is the potential impact for marketers?
Is it good? Bad? Does it give them more control or less?
The bottom line is, in this case, if Amazon indeed acquires Sizmek to leverage its assets to enhance its own ad serving and creative capabilities, it will be to the marketer’s benefit. The Amazon opportunity at hand for advertisers has not been overhyped, and this acquisition signals that the marketplace wants to meet that marketer demand with a better-rounded offering.
Sizmek’s capabilities around ad serving and dynamic creative optimization are considered very sound. With these pieces integrated into the Amazon stack, marketers would be able to perform some of the advanced tactics that they have come to expect from more mature, digital advertising systems.
Even though the timeline has been short, Amazon Advertising is already a proven commodity. And Amazon is in a vastly different situation compared to the other big ad players at the same point in their respective evolutions. Unlike some of the other tech startups that eventually became household names, Amazon is already an established business with deep knowledge, data, and tech. Thus, it is in a unique position to take giant leaps and bounds and quickly build up their offering.
The other key quality with Amazon is that its ad offering isn’t primarily to drive advertising revenue, but rather to stimulate customer engagement. To this end, Amazon and its advertisers are completely aligned because whatever Amazon can do to help to sell products is good for the brands and good for Amazon. Thus, an investment towards this goal is mutually beneficial for all parties involved.
Of course, at this point, we don’t yet know the specifics on how Sizmek’s technology will be repurposed. But, even a small, positive step forward should be a boon for marketers with the industry’s fastest growing channel.
– Amazon acquires Sizmek. Read the announcement on Amazon’s blog.
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