Wondery will make Amazon an even more formidable force in advertising

“Every time Amazon acquires someone there is an additional buzz, especially when it comes to an issue in the media / marketing / entertainment world,” said Collin Colburn, senior analyst at from the Forrester research company. “The other thing is, this area of ​​podcasting has been extremely acquisitive and consolidating.”

Indeed, last year we saw SiriusXM acquires the Stitcher podcast app, The New York Times buys the Serial Productions podcast studio and Spotify buys the Ringer sports podcast network-and sign a deal with comedian Joe Rogan.

According to Chelsea Gross, senior director of research firm Gartner, the Wondery deal demonstrates that Amazon now intends to compete in audio as a bigger player. Additionally, its podcast library helps grow Amazon Prime exclusive content and potentially convince new members to take the plunge. And, noted Sarah Dawson, Forrester researcher, podcasts give Prime members another reason to stay in the Amazon ecosystem.

Amazon helps cement a great year for audio

But the agreement itself also indicates the audio marketing predictions in 2021 are already there.

“Anytime you have big guys like this coming into the game, it’s usually a good sign of momentum and interest from the advertisers,” Colburn said.

Raw audio marketing is “definitely an area where we are seeing strong growth from the customers we work with and an area where they are seeing a fairly significant return on investment.” In part, this is because audio marketing includes host-read advertisements that “[come] more as a friend as opposed to this high profile medium, ”she said. But it’s also because of the programmatic insertion of highly personalized ads based on user behavior, which is quite in the alley of Amazon.

“If Amazon is able to pull together and put together browsing history or buying behavior with some of the ad metrics, I really see how that could be really powerful,” Gross said.

Amazon currently offers audio ads on Amazon Music in the US, UK, and Germany. But a new podcast library suggests potential for even more audio inventory. (Regarding podcast ads, an Amazon spokesperson said the Wondery deal is not closed and there are no changes to share.)

At the very least, auditor data can help Amazon refine its targeting capabilities and focus on the products listeners are most likely to buy, said David Erickson, director of digital marketing consultancy E -Strategy Media and co-host of the Beyond Social Media Show. Podcast.

A full funnel option

According to Guru Hariharan, CEO of e-commerce optimization platform CommerceIQ, Amazon already owns the bottom of the buying funnel – where consumers know what they want and are ready to buy – thanks to advertising options like sponsored products. Now, however, with more content, he thinks Amazon has a chance of owning the entire funnel at a time when more and more retailers are becoming media companies to compete for advertising dollars from brands.

Indeed, Amazon is poised to gain a larger share of the high-end advertising – in which brands try to educate consumers early in the buying cycle – which it says is “still very young” in. retailing with no clear winner.

“The beauty of this acquisition is that brands now have a way to control the entire funnel and measure attribution,” Hariharan said. “It’s a marketing manager’s dream to see what advertising dollars go to sales, so connecting the top of the funnel and the bottom of the funnel is magic for brands.”

Mr. Gross agrees that there is potential for vertical integration, such as complementing audio ads with product placement in Search Network ads, which “makes [Amazon] even more formidable from a media point of view. “

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