E-commerce giant Amazon is conducting a global media agency review. It’s a huge piece of business. The firm spent more than $5 billion on advertising and promotional costs in 2016, according to the firm’s latest annual report. Of that total, more than $1 billion is estimated to be earmarked for measured media expenditures worldwide, most of it targeted to U.S. consumers. It’s believed that most of the holding companies will participate in the review, although one exception is Omnicom, which handles competitor Google.

1. NEW BUSINESS PITCH
September 2017

2. NAME BRAND PITCH TYPE
Media
MARKET DATE
The Data You Need to Win This Pitch
DESCRIPTION
E-commerce giant Amazon is conducting a global media agency review.
It’s a huge piece of business. The firm spent more than $5 billion on advertising and promotional costs in 2016, according to the
firm’s latest annual report. Of that total, more than $1 billion is estimated to be earmarked for measured media expenditures
worldwide, most of it targeted to U.S. consumers.
It’s believed that most of the holding companies will participate in the review, although one exception is Omnicom, which handles
competitor Google.
Amazon puts Its
Media Account In
Review
North America August 8, 2017

3. Client Profile / Market
Amazon.com, Inc. is an online retailer that offers an ever
expanding range of products, including books, music, videotapes,
computers, electronics, home and garden, and numerous others.
Amazon offers personalized shopping services, web-based credit
card payments, and direct shipping to customers.
COMPANY BACKGROUND
MAIN COMPETITORS
2016 Sales (mil)
2016 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
136,000
341,400
-
-
-
-
FINANCIAL OVERVIEW
- Source: AccessConfidential.com -
DECISION MAKERS by
cbaker@verdiem.com
Vice President, Marketing
and Strategy
Mr. Chris Baker
dunwelk@amazon.com
Marketing
Manager
Ms. Katie Dunwell

4. E-commerce Worldwide
Purchased Goods Online
1.6 billion$1.9 trillion
Global e-retail sales
$4.1 trillion
Global e-retail sales by 2020

5. Fast Food industry in numbersE-commerce Worldwide
Of total retail sales
Asia - Pacific
12.1%
Of total retail sales
Middle East - Africa
1.8%
E-commerce share of total global retail sales from 2015 to 2021
(Thousands of Units)
2015 2016 2017* 2018* 2019* 2020* 2021*
6%
8%
10%
12%
14%
16%
7.4%
8.7%
10.1%
11.6%
13.1%13.1%
14.6%
15.5%
SHAREOFE-RETAILSALES

6. Fast Food industry in numbersOnline shopping penetration rate
76% 72% 72% 68% 67%
Average number of transactions per Online Shopper
Asia
22.1
North America
19

7. Fast Food industry in numbersMost popular shopping categories worldwide
58% of Internet users have
purchased
fashion-related products
through the internet
November 2016
55% of Internet users have
purchased
travel-related products &
services through the internet
November 2016

8. Fast Food industry in numbersMobile Shopping vs Desktop Shopping
Online Retail Traffic Share
48%
DESKTOP
52%
SMARTPHONE
Online Retail Order Share
70%
DESKTOP
30%
SMARTPHONE
Average Value of
Online Shopping Orders
$143.35
$114.5
$109.7MOBILE BROWSER
ORDER SHARE
54%
MOBILE APPS
ORDER SHARE
46%

9. Fast Food industry in numbersU.S. E-Commerce Market
$322.2 bn
2016 E-Commerce
sales
$485.3 bn
2020 E-Commerce
sales Forecast
E-commerce share
of total retail sales
8.1%
CYBER MONDAY
Is the top online
spending day in the US
$2.7 billion
Spent in 2016

10. Fast Food industry in numbersU.S. E-Commerce Market
TRADITIONAL SMARTPHONE TABLET OTHER
150
125
100
75
50
25
0
ORDERVALUEINU.S.DOLLARS
Average value of online shopping orders in the
U.S. as of 1st quarter 2017, by device
(in U.S. Dollars)
Books
Automotive
Prefer to purchase in-store Prefer to purchase digital
38% 62%
88% 12%
PRODUCT CATEGORY MOST SHOPPED ONLINE
PRODUCT CATEGORY LESS SHOPPED ONLINE
20% US consumers
purchase goods online
on a weekly basis

11. Fast Food industry in numbersU.S. E-Commerce Market
LEADING WEB-ONLY
MERCHANT
LEADING RETAIL
CHAIN
(RANKED BY E-COMMERCE SALES)
FASTESTS-GROWING
E-RETAILER
Lord & Taylor

12. Fast Food industry in numbersAmazon
$136 b
NET SALES
27%
Y-O-Y REVENUE GROWTH
341,400
EMPLOYEES

13. Business Segments
NORTH AMERICA
$ 79,785 M
59%
+ 25%
INTERNATIONAL
$ 43,983 M
32%
+ 24%
WEB SERVICES
$ 12,219 M
9%
+ 55%
NET SALES
Sales Share
Y-o-Y Growth

14. Fast Food industry in numbersNet Revenues by Segment
2.2%
OTHER
9.0%
AWS
16.9%
RETAIL THIRD-PARTY SELLERS
67.2%
RETAIL PRODUCTS
4.7%
RETAIL SUBSCRIPTION
R E V E N U E B Y S E G M E N T S

15. Customers
Frequency with which US Amazon
buyers make a purchase via Amazon
Nov 2016 ( % of respondents )
One a week or more
2-3 times a month
Once a month
3-4 times a year
Once a year
20%
36%
24%
19%
1%
Note: n=1,000 ages 18+
Source: Radial, Attitudes Among Amazon Shoppers
Conducted by Finn Partners, Dec 14 2016
REASON WHY
38% Product
Selection
29% Product
Prices
18-29 Years Old
Prioritize Speed of Delivery
( 29% of total )
54%Amazon Shoppers
purchased electronics
in the last year
59%US Internet Users
Use Amazon at least
occasionally
63%
Amazon’s shopping users
are Prime Members

16. Fast Food industry in numbersThe Whole Foods Acquisition
Amazon acquired Whole
Foods Market for $13.7 bn in
2017
BOOSTING PRIME
MEMBERSHIPS
Amazon has introduced Prime as
a Customer Loyalty Program
Amazon Lockers will be installed
in some Whole Foods stores
Amazon.com, Amazon Fresh,
Prime Pantry and Prime Now
Are selling Whole Foods
Private labels
Amazon announced it would
instantly lower the prices for a
series of products at Whole
Foods by up to 50%
Store traffic at Whole Foods
stores increased by 25%
Amazon added 2,000 Whole
Foods 365 Everyday products
on its own web shop
Web sales of Whole Foods
branded products totaled about
$500,000 in the first week
QUICK RESULTS

17. Fast Food industry in numbersAmazon’s Spark
SPARK IS US & iPHONE ONLY
An Instagram-like social
shopping feed aimed at
improving product discovery.
Spark users are encouraged to
post stories, ideas and images
of products they love, which
others can react to.
To post, you have to belong to
Prime and have spent $50 on
Amazon.
FIVE WAYS OF BOOSTING BUSINESS
Facilitate Product Discovery
Drive social engagement that revolves
around social commerce
Posts from Influencers
and publishers like
Apartment Therapy
Spark supports video, harnessing
the popularity of “un-boxing” and
tutorial videos on YouTube
Promote Prime memberships
Data collection & timed ads

18. Amazon’s Marketing Spending
$ 139.3 bn
Amazon Brand Value
$ 2.6 bn
Amazon US
Advertising spending
$ 5 bn
Amazon Global
Advertising spending
Amazon
3% 91%
PERCENTAGE OF MARKETING BUDGET
SPENT ON ONLINE ADVERTISING
DIGITAL SEARCH

19. Fast Food industry in numbersAmazon’s Audience
SEE THE FULL PROFILE
FEMALES
60 %
55-69 YEARS OLD
26 %
TOP PSYCHOGRAPHICS
37.4%
Living in the
South Region
FOOD LOVERS MONEY SAVERS
BEAUTY &
WELLNESS AWARE

20. QUICK DEFINITION:
Digital Grocery Shoppers
Digital Grocery Shoppers are consumers who make
use of online website/apps to buy groceries.
Our target is based on consumers interested in
online groceries like Peapod and FreshDirect
10%
20%
0
30%
15-17 18-24 25-34 35-44 45-54 55-69
77%
FEMALE
58%
MARRIED
47%
WITH
CHILDREN
2.6 x
MONEY SAVERS
2.4 x
DIGITAL
GROCERY
SHOPPERS
• • •
•••
BEAUTY & WELLNESS AWARE
HEALTH CONSCIOUS
2.3x 2.0 x
ART APPRECIATORS

21. DIGITAL GROCERY SHOPPERS:
BEAUTY/WELLNESS
GET FULL INSIGHTS
THOUGHTFUL EATERS
Digital Grocery Shoppers are
responsible about their diet.
Food for them is a source of
nutrition as well as enjoyment.
They are not on any particular
diet, rather do their best to eat a
healthy, balanced lineup of
meals. They try to eat breakfast
every day, regularly eat organic
foods, and rarely eat fast food.
ACTIVE & FIT
1.6x
Their body image is
important to them and they
often incorporate vitamins
and supplements to be sure
they are getting the most out
of their workouts.
4.2x
UP4
PROBIOTICS
POPULAR VITAMIN BRAND

22. DIGITAL GROCERY SHOPPERS:
HEALTH
Interest in
Health & Fitness Apps
grew by 35.8% over the
last quarter
BABY CARE
2.3x
Free of harsh chemicals and
toxins, BabyGanics' products
are plant-based, natural and
contain no fillers or dyes.
POPULAR BABY CARE BRAND
QUARTERLY
TREND
+35.8%
GET FULL PROFILE

23. DIGITAL GROCERY SHOPPERS:
SAVINGS
GET THE FULL PROFILE
MONEY SAVERS
2.4x
People in this segment tend to save money in several branches of shopping like
clothing, department stores, electronic stores. They generally consider price first
amongst other factors and are always up to date with the latest offers by
searching for them on the web.
TRENDING DAILY DEAL WEBSITE
QUARTERLY
TREND
+114.7%
Coupon users are
spending 24% more
than regular shoppers

24. DIGITAL GROCERY SHOPPERS:
ART
GET THE FULL DASHBOARD
PAT PERRY
4.5x
POPULAR ARTIST QUARTERLY
TRENDING ARTIST
KAREN HALLION
+148.2%

25. CONSUMER
INSIGHTS SUITE
Discover Amazon’s Target Consumer
TRY NOW FOR FREE >
on Cubeyou Consumer Insights Suite