Meta and Amazon Partner to Drive E-Commerce Personalization and Conversion

The commerce and social worlds have become more and more fluid in the past years. E-retailers want to be social platforms (Amazon Inspire, Walmart creator, Lazada with Lazlive…), and social platforms want to be e-retailers/marketplaces (TikTok shop, Facebook marketplace…).??

Yesterday, Meta announced a new partnership with Amazon in the US? that considerably shortens the time between exposure and purchase, allowing users to directly link their Facebook and Instagram accounts with 亚马逊 , creating a seamless check-out experience within the Meta apps using saved Amazon payment information and delivery address.?

Amazon product ads on Meta already exist (collaborative ads), with clear success for advertisers in APAC, though implementation is growing slowly in Europe and the US. In this scenario, Meta implements pixels on Amazon, allowing better targeting and better return on ad spend. This functionality would redirect users to the Amazon website or app, with no direct Amazon functionality within the meta ecosystem.

While this feature presents new connectivity between the world’s largest online retailer and social media platforms, this new partnership in the US goes even further, creating better targeting and seamless shopping experiences from exposure to purchase.?

The Havas Market team looks at what this development means for the entirety of the e-commerce ecosystem.?

WHAT DOES THIS MEAN FOR USERS?

A new totally frictionless shopping experience that allows:??

• Better experience and convenience: shoppers won’t have to switch from one app to the other and won’t have to register or create new accounts which usually ends up in dropouts.?
• Relevancy: shoppers will be better targeted with products that are directly relevant.?

WHAT DOES THIS MEAN FOR ADVERTISERS??

This union between Amazon and Meta goes beyond creating a more seamless shopping experience for consumers. The connectivity between these two giants in the commerce and social space presents newfound targeting, personalization, and conversion opportunities for advertisers:?

• Capability for end-to-end 360 marketing campaigns, from product discovery to instant check-out.?
• Better targeting and optimization directly on Meta?using Amazon's data.?
• Personalized ads and product pages based on users’ Prime membership status, real-time pricing, and shipping estimates.?
• Improved CTR and conversion rates through instant check-out, remedying what has been the Achilles heel of social commerce since its inception: the time between exposure and purchase.??

WHAT’S IN THIS FOR AMAZON??

The benefits for Meta are clear, increasing ad revenue through more attributable conversions. For Amazon, this partnership is also a no-brainer that expands the commerce giant’s reach and personalization:?

• With a direct connection to Meta’s broad audience, Amazon can expand its reach to a new, relevant base for its merchants and reduce the cost of customer acquisition.?
• By engaging directly with customers on Meta platforms, and with access to Meta’s customer insights, Amazon can use historical purchase data to ensure the right product is shown to the right person at the right time. This will increase the customer lifetime value for Amazon, pushing consumers to direct their purchases towards their platform.????

WHY ARE THESE GIANTS COLLABORATING??

Despite this clearly being a win-win scenario for Amazon and Meta alike, why are these tech giants collaborating instead of trying to keep capabilities in-house? In two words: SOCIAL COMMERCE.

Social commerce is a game-changer, despite slower adoption in the US and Europe. Amazon and Meta are still struggling with their offerings in this space. Amazon struggles with its product discovery features (Inspire) and Meta with its shopping features (Facebook Shop). This new partnership shows that neither are giving up their efforts to build end-to-end shopping experiences.?

TikTok seems to have found a way to successfully engage audiences through social commerce – directly competing with Amazon and Meta, functioning as both a discovery engine and, through TikTok shop, an e-commerce platform. TikTok reaches over 150 million users in the US, with an emphasis on younger demographics.??

Through this partnership, Meta and Amazon are embracing the TikTok phenomenon, and more generally, mega apps in China, allowing them to jointly take on this challenger more completely than either could alone.? ??

WHAT WILL WE SEE IN THE NEAR TERM??

This union will undoubtedly have a major impact on the social commerce landscape in the US. As brands and advertisers reconsider their investment in light of this news, we anticipate seeing:?

• Amazon first-party and third-party sellers boosting their investment on Meta platforms and prioritizing it over other digital channels (Programmatic, Search) for any campaign with an e-commerce objective.?
• Meta advertisers choosing to direct their customers to Amazon instead of their own websites or other external shopping platforms, taking advantage of Amazon’s increased conversion potential.?

Questions? Thoughts? Reach out to [email protected]??and [email protected] to learn how Havas Market can advise you on navigating the ever-changing commerce landscape.??