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Amazon Prime Day 2019: A blending of retail and entertainment

15 Jul 2019 / By: Meaghan Werle, Alice Fournier

Last week, Amazon kicked off Prime Day 2019 with a livestreamed concert headlined by Taylor Swift, following in the footsteps of Alibaba’s Singles Day (Figure 1). In doing so, Amazon set the stage for its fifth annual event, one clearly focused on blending shopping and entertainment in the hopes of driving Prime members across its ecosystem.

Figure 1. Prime Day 2019 Concert and Twitch Celebrity Competition

 

Source: Retailer website

Since the Prime Day concert, connections with high-profile influencers have dominated Amazon’s Prime Day campaign. The retailer continues to release “star-studded collaborations, deals, and exclusive launches” in partnership with popular brands, athletes, actors and musicians, including Will Smith, JoJo Siwa, and Marshmello. In light of this effort, one of the biggest launches for Prime Day 2019 is Lady Gaga’s Haus line of beauty products, exclusively sold on Amazon (Figure 2). By using a musical powerhouse as the image for its new brand, Amazon is likely to follow with exclusive content on both its music and video platforms.

Figure 2. Lady Gaga’s Haus Launch 

 

Source: Retailer website

In addition to celebrity endorsements, Amazon is enlisting social media personalities to boost interest in the sales event and traffic to its site. Leading up to Prime Day, Amazon was noticeably recruiting for the Amazon Influencers program, positioning it as an additional revenue stream for content creators (Figure 3). In turn, Amazon understands the power of the peer in influencing purchase decisions. 

Figure 3. Instagram Advertising for Amazon Influencers

 

Source: Instagram

The retailer also used its existing network of influencers to build Prime Day hype, as seen with Arielle Charnas of Something Navy, whose partnership with Amazon Fashion coincided with the reveal of the date of Prime Day (Figure 4). This emphasis comes at a time when Amazon is investing in new initiatives like The Drop, in which the retailer is designing limited-edition, made-to-order collections with fashion influencers that are available for only 30 hours.     

Figure 4. Arielle Charnas Announces Prime Day

 

Source: Instagram

Beyond influencer and social media connections, video content has also demonstrated its ability to capture shares of mind and wallet. As Prime Day progresses, we are seeing an increased amount of shoppable livestreaming content, helping to reignite impulse purchases that are generally challenged online. With Prime Day Live, Amazon is tapping into this trend and showcasing a QVC-type of approach where in-studio hosts describe products, while shoppable product pages scroll through next to the screen (Figure 5).

Figure 5. Prime Day Livestream

 

Source: Retailer website

Ultimately, Amazon is leveraging media to boost frequency of engagement with Prime members, while seamlessly connecting entertainment back to the purchase. To drive growth in mature Prime markets like the U.S., Amazon is relying on digital content to keep members coming back regularly, increasing browsing across its site, and build bigger baskets. For these reasons, expect continued emphasis on these Prime benefits throughout Prime Day and beyond.

To analyze the Prime Day effect and its role in your future promotional planning, our entire analyst team will be covering how Prime Day unfolds across the retail landscape. Stay tuned for updates and save the date for our Amazon Workshop Oct. 23 in Seattle.

 For more information, please contact:

Meaghan Werle
Principal Analyst
meaghan.werle@kantar.com


Meaghan Werle

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