Amazon x Meta: What does the new partnership mean for advertisers and brands?

The announced partnership between two of the top three players in the advertising market has caused a stir. But what is really behind it? We discussed this question with Jens Jokschat, Managing Director and founder of the Amazon marketing agency PrimeUp, member of GROW.

Q: Hello Jens. As was recently reported, Meta will make it possible to integrate and buy Amazon products on its social platforms in the future. What's behind it and will it be a game changer?

A: Hello Mathilda. Although all the details are not yet known, we assume that the partnership between Amazon and Meta, formerly Facebook, could have a significant impact on both manufacturers and retailers. One of the key benefits of this partnership is the seamless integration of the Amazon shopping experience into the social media apps, allowing users to complete purchases directly from Facebook and Instagram. This simplifies the purchasing process considerably and should inevitably lead to improved conversion rates. However, users must actively consent once in order to use the benefit.

The question of what the advertising integration of Amazon products in the Meta world will look like in the future is less clear, but particularly exciting. To date, advertising on Facebook and Instagram can be controlled based on Meta's user and target group data. From a marketing perspective, this is often more in the mid- or upper-funnel and can support purchasing decisions in the medium term. If Amazon is able to make its own user data and thus information such as purchasing behavior or purchase intent available in the Meta ecosystem in the future, this will open up completely new opportunities for Amazon advertisers. Whether and in what form this will be possible is not yet entirely clear.

Q : Are there any limitations in terms of data integration between Amazon and Meta?
A: That is a crucial question. One thing is certain: from 2024, when the advertising world will largely have to manage without 3rd party cookies, it will become increasingly difficult to place data-based, relevant and personalized advertising on the open internet. Direct technical integrations of large players, as we are experiencing here, have the option of obtaining the appropriate consent for personalized advertising from the user and then delivering it on the basis of their own user profiles. I would assume that we will mainly see personalized Amazon advertising combined with the reach of Meta. This would have great potential from a marketing perspective.

Q: Does this only benefit manufacturers and Amazon retailers?
A: The partnership definitely offers opportunities for brands that sell on Amazon, as it leads to increased interaction with Amazon products on meta platforms and thus generates additional sales. It remains to be seen whether other, non-endemic advertising customers will also be able to access this combination in the future, e.g. via the Amazon DSP. At present, this is apparently not part of the partnership. I wouldn't be too optimistic here either, as Meta and Amazon are in direct competition for such advertising money.

Q: Are you already using integration for your customers in Germany?
A: So far, the partnership has only been announced for the US market, which Amazon often does for new advertising products. We assume that, if successful, a launch in the EU markets will take place in a few months. The speed of innovation in Amazon's web ecosystem has increased dramatically in recent years.

Would you like to delve deeper into the subject and discuss it?
Then get in touch with PrimeUp: grow@primeup.de. More information at https://primeup.de/