Amazon has reportedly appointed VML to handle its brand and marketing activity in Australia, replacing Droga5.
The Australian reported that Amazon had made the switch but had not publicly confirmed the appointment, VML’s remit will also include advertising for Amazon Prime.
The move comes after Droga5 was appointed to Woolworths’ $8 million advertising account in July, putting the agency on the other side of an increasingly competitive supermarket market.
Amazon has spent the past few years building its local retail proposition across categories including electronics, beauty, fashion and household goods. Grocery represents a different challenge as it puts the brand directly into consumers’ weekly shopping habits and into a market dominated by supermarket giant’s Coles and Woolworths.
That push accelerated in January when Amazon partnered with Harris Farm Markets to offer fresh groceries through Amazon in selected suburbs across Sydney, Brisbane, Canberra, the Gold Coast and Newcastle.
The partnership gave Amazon access to a category where convenience, delivery and frequency are critical to consumer choice. It also gave Harris Farm a route into Amazon’s large customer base. Amazon Prime members received free delivery on grocery orders over $100.
The move comes as Amazon expands its grocery business globally. In the US, the company has been expanding same-day delivery of fresh groceries alongside its Whole Foods business.
Droga5 has declined to comment. B&T has reached asked VML and Amazon for comment.
