This session was presented at the LSA19 event in Dana Point, California, February 25-27, 2019.

1. Amazon
shifting purchase behaviors & the
advertising mix

2. Investis Digital

3. 3
International presence – global impact
OUR LOCATIONS
3Continents
8Countries
500+
Digital professionals
Phoenix
USA
New York
USA
Vadodara
India
London
United Kingdom
Edinburgh
Scotland
Dublin
Ireland
Frankfurt
Germany
Götborg
Sweden
Helsinki
Finland

4. Amazon

5. 5
Amazon Prime Now experience

6. 6
August 2017
Changing my shopping behavior

7. 7
“Whole Food's 365 Everyday Value brand is now the number two
best-selling private label brand on Amazon, just behind
AmazonBasics. The food brand raked in $11 million in the few
months it was available in 2017 on the website. Most of the best-
selling items on Amazon include non-perishables, like drinks,
coffee pods, and snacks.”
– Business Insider, Jan 2018
Whole Foods acquisition – changed the inventory
on Prime Now

8. 8
The first Private Label revolution

9. 9WSJ, March 2017

10. 10
Amazon comprised 44% of eCommerce spending
by Americans in 2017

11. 11Mary Meeker, Internet Trends 2018

12. 12Mary Meeker, Internet Trends 2018

13. 13Mary Meeker, Internet Trends 2018

14. 14
Product diversification leadership +
Product search leadership +
eCommerce sales leadership 
Advertising opportunities

15. 15
Amazon advertising revenue projections

16. 16
Expanding revenue, expanding ad units & targeting
opportunities

17. 17
Expanding revenue, expanding ad units & targeting
opportunities

18. 18
In 2017, Amazon was mentioned more than Facebook, Apple, and Microsoft combined
New areas of competition

19. 19
Result:

20. 20
Amazon advertising on the rise

21. Where’s it headed?

22. 22
1. Amazon Prime
2. Amazon Web Services
3. Marketplace
Bezos in 2016:

23. 23
• Revolutionize healthcare
• Expand R&D facility Lab126
• Expand AI & machine learning
• Continue investment behind Alexa and voice search
• Launch drone delivery & airborne fulfillment centers
Other headlines, Amazon will:

24. 24
… [I]n our retail business, we know that customers want low prices, and I
know that’s going to be true 10 years from now. They want fast delivery;
they want vast selection. It’s impossible to imagine a future 10 years from
now where a customer comes up and says, ‘Jeff I love Amazon, I just wish
the prices were a little higher;’ ‘I love Amazon, I just wish you’d deliver a
little more slowly.’ Impossible.”
What’s not going to change in the next 10 years?

25. 25
Amazon advertising
• Platform improvements are
needed to better compete
in advertising.
1. UI improvements
2. Improved targeting
capabilities, specifically
around the basics that
Google offers
3. Better understanding of
cross-platform behavior
and attribution
Client impact
• Brick & mortar clients
figuring out how to
compete against Amazon –
especially now as Amazon
is becoming a large player
in that space itself
• Retail & CPG clients coming
up against house brands
that are cheaper than their
legacy brand
• Clients grappling with
Amazon as the third big
advertising network after
Google and Facebook
Investment strategy
• Continued growth in
physical retail space and
CPG goods
• Growth in AI investment
Result

26. Thank you
Whitney Hart
SVP, Strategy
whitney@investisdigital.com