IPG to set up new division after $1bn Amazon win

Pippa Chambers
By Pippa Chambers | 2 November 2017

Sought after e-commerce beast Amazon has retained IPG as its global media agency partner, with the network now in the process of creating a separate entity to run the account.

News of Amazon's US$1bn global media pitch made headlines in August this year and according to AdWeek, an internal memo went out to staff yesterday confirming the win.

It was initially thought that Initiative would lead the business, but AdNews understands that a completely separate division will be created for Amazon. It's thought the entity will have local heads responsible for the hub.

Amazon’s main e-commerce offering, tech products and Amazon Prime subscription service are said to be the bulk of the account.

In Australia, Amazon's media spend, including Amazon Web Services, was reported as $4.8 million in the past 12 months – according to Nielsen.

In October, AdNews revealed how Amazon had named WPP's Ogilvy as its creative agency of record in Australia ahead of its official launch in the local market.

IPG Mediabrands’ Initiative won Amazon's last global media pitch in 2013, beating WPP’s Mindshare and other unnamed competitors.

In August Amazon Australia confirmed its new country manager of Australia operations would be Rocco Braeuniger.  Amazon Australia ops director also said "We'll bring thousands of jobs". 

AdNews also reported how Amazon was specifically hunting for marketing staff Down Under and was eyeing the music streaming market.

 

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