After a thorough half-year screening process, WPP and Omnicom Media Group were selected by Amazon to handle its global media tasks. According to agency research firm COMvergence, Amazon is a major player in the worldwide advertising market with a massive $5 billion media spend.
Details from the COMvergence study available to BrandSpur digital news desk, indicate that before, Amazon alone handled the other half of this huge expenditure, with incumbent IPG Mediabrands handling about half of it globally. In particular, the United States receives $2.4 billion of the total, of which $1.3 billion is managed by Mediabrands and $1.1 billion is handled internally by Amazon.
Speaking about the recent development, Amazon’s spokesperson, Margaret Callahan, said that the company has chosen to work with OMG and WPP following a careful evaluation of potential advertising agency partners for its consumer business.
“We are grateful for the opportunity to engage with numerous outstanding agencies during this process. We extend our sincere thanks to IPG, who has been an exceptional partner over the past decade, and we appreciate their ongoing support in other critical areas of our advertising, including AWS, Amazon Ads, and Amazon Business.”
As per the new agreement, WPP will be in charge of media strategy for Europe, the Middle East & Africa, and Asia Pacific, while Omnicom Media Group will handle media strategy for the Americas. The review procedure assessed the market knowledge, media planning prowess, pricing tactics, measurement capacities, and account management of each agency in every region. MediaSense, a consultancy, was crucial in directing the evaluation procedure.
