; Amazon.com buys Zappos
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Amazon.com buys Zappos


The deal "will just give both companies more efficiencies of scale, making them more profitable through cost savings," explained Heather Dougherty, director of research at Hitwise. The firms also can promote across respective customer bases, she added. They may already have a crossover in clientele.

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									                                                                                                                       on by the global recession. In the
: FedEx Corp. last week launched                                                                                       fourth quarter, which ended May          : Amazon.com took greater com-
an offbeat ad campaign with                                                                                            31, the shipper reported revenue         mand of the apparel and footwear
agency BBDO targeting small                                                                                            down 20% to $7.85 billion com-           e-commerce sphere last week with
businesses, with online video as                                                                                       pared with the same period last          its acquisition of online shoe seller
its centerpiece. This campaign is                                                                                      year, while it had a net loss of $876    Zappos.com, in a stock transaction.
part of FedEx’s ongoing efforts                                                                                        million, vs. the prior year’s net loss   The agreement, expected to close
to put digital at the forefront of                                                                                     of $241 million.                         in the fall, was valued at about
its ad strategy.                                                                                                         Pacheco would not comment              $807 million — 10 million shares
   “With the conscious strategic                                                                                       on spending for this campaign,           of Amazon common stock.
shift of having digital at the core                                                                                    but characterized it as “in line            “There is a lot of opportunity in
of almost every one of our mar-                                                                                        with some of our integrated cam-         this market segment,” said Craig Ber-
keting efforts, this was a plank in                                                                                    paigns.” He stressed the company         man, a spokesperson at Amazon.
that platform,” said Steve Pacheco,                                                                                    will continue to use multiple ad            While Amazon already has its
director of advertising at FedEx.                                                                                      channels, including broadcast            own online footwear property, End-
   The “1,2,3 Succeed!” campaign —                                                                                     TV and sports sponsorships.              less.com, the Zappos buy extends
an infomercial spoof featuring come-                                                                                   However, he noted that deploying         its influence in the vertical.
dic actor Fred Willard — includes                                                                                      digital forms of advertising enables        The deal “will just give both
rich banner advertising on portals        to “Get Infotained.” There, view-      humor sites such as Crackle,          FedEx to “be more efficient with         companies more efficiencies of
such as Yahoo, general business           ers can screen the longer-form         Funny or Die, and Blip.tv. Video      our media dollars.”                      scale, making them more profitable
sites and small-business centric sites.   “ads:” five three-minute videos that   ad networks Tremor Media and            Online video, and in particular        through cost savings,” explained
Fifteen-second pre-roll advertising       parody infomercials. The videos        Undertone Networks are also           pre-roll advertising, may also be        Heather Dougherty, director of
runs on video sites including Hulu        are also being promoted on the         being employed.                       particularly attractive to market-       research at Hitwise. The firms also
with the message, “We understand.         FedEx corporate site in its multi-      FedEx, along wi
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