VIEWS: 22 PAGES: 2 CATEGORY: Business & Economics POSTED ON: 6/18/2010
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.
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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