I'm sure many of my network are currently buried in AVN right now..
It's fascinating to sit through various AVN and listen to the asks from Amazon and the brands perspective, especially when it comes to retail and media.
From the brand's perspective, the Amazon P&L seamlessly blends retail and media into a single entity. However, on Amazon's end, the business is split into two distinct divisions, treating retail and media as separate entities.
The clash emerges when Amazon advertising relentlessly push for more budgets, often overlooking the fact that retail teams on Amazon's side are pressing for increased cash flow or margin to secure net PPM.
In the current retail landscape, investments in Amazon ads can undoubtedly drive incremental sales. Yet, brands find themselves in a bind as these budgets are essential to securing their standing on the platform, ensuring retail viability and profitability.
This presents an educational opportunity, one that demands balance. Bridging the communication gap between these two divisions is imperative. Without a unified strategy, investments in Amazon ads may become a cause for concern, especially when VMs have the potential to disrupt your catalog effortlessly.
As a brand, do you have two separate P&L's for Amazon - or one unified pot?
#amazonagency #amazonadvertising
Executive Vice President Acosta Sales and Marketing
1moLove it!