Frager Factor

Saturday, March 30, 2013

$300 Million? Are You That Domain Dumb, Mr. Bezos?

Why is Amazon still spending $300 million on media (mostly to Google), when they could own generic domain and #1 organic google result for everything they sell?

Via AdAge and According to Kantar Media, the Seattle-based company and its Zappos.com and Quidsi brands spent $298.8 million on U.S. measured media in 2012. In 2011, it spent $777.6 million on total U.S. advertising, including measured and unmeasured spending, according to the Ad Age DataCenter. 

The DataCenter also reported an uptick in measured-media spending in 2011 from $161.7 million in 2010 to $199.5 million. Zappos accounted for about $32 million of that spending. While the largest chunk of Amazon's budget in 2011 went to network TV -- $68.7 million -- the company also spent $54.1 million on magazine buys, as well as $30.9 million on display ads. Unmeasured spending accounted for $578 million of the company's total marketing budget. 

 With competition heating up on the e-reader, tablet and digital marketing fronts, Amazon, which owns Kindle, acquired book-sharing social-media platform Goodreads. Fashion e-tail is another marketing focus for the company, which this week announced its first TV ad campaign touting its fashion offerings. Cathy Beaudoin, president of Amazon Fashion, told Women's Wear Daily that the company hopes a TV campaign will create greater awareness of Amazon.com's fashion editorial content and brands. 

The outlet reported: "The overall campaign spans TV, print, outdoor, online display and social platforms and ties back to a 'really immersive site experience,' she said." 

 MORE from AdAge

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About The Author: Owen Frager is an Internet marketing expert ready to help take your company to the next level.

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