Brief:

• Verizon partnered with Amazon to promote subscriptions for broadband internet and pay-TV service in select markets. Customers who order groceries or other goods from Amazon Prime Now can scan a QR code on delivery bags to see whether Verizon offers its Fios service in the area, according to an announcement shared with Mobile Marketer.
• Scanning the QR code with a smartphone opens a landing page on Amazon's website before connecting users to a sign-up page on the Verizon site. Customers will then get a $5 credit to their Amazon account just for checking the availability of Fios in their area.
• The duo first tested the delivery promotion in September and will now distribute 500,000 delivery bags with the QR codes to people in New York, Boston, Washington, Baltimore and Richmond, Virginia.

Insight:

As Amazon works to build its quickly growing advertising business with products such as display, keyword, video ads and sponsored products, the e-commerce giant is also looking at ways to market the precious real estate on its delivery packaging. Amazon Prime Now not only offers local store delivery in some areas, but also tens of thousands of items including household products, groceries, electronics, gifts and seasonal items.

By selling ad space on Prime Now packaging to Verizon, Amazon can help to offset the cost of thousands of delivery bags in select cities. Verizon also can target households in delivery areas where the telecom giant offers Fios broadband, possibly making its marketing efforts more effective than in other channels. Fios internet connections grew 3.9% to 5.96 million in Q2 2018 from a year earlier, offsetting losses in Fios video and digital voice connections, per Verizon. For Amazon, the $13.7 billion acquisition of Whole Foods Market last year was a major step in expanding its range of services and renewing its focus on convenience.

While the company hasn't released details of how many Prime Now deliveries it makes, Amazon shipped more than 5 billion Prime packages worldwide last year. Prime has about 100 million members who pay a monthly or yearly subscription fee to receive two-day delivery on most products, along with access to the Amazon Prime Video streaming service and limited access to Amazon Music. This points to the valuable customer base that Verizon aims to get in front of through Amazon's delivery service.

By incorporating QR codes into the packaging, customers can more easily access the information on a mobile phone, rather than being required to type in a long URL displayed on a printed flyer in the bag. Removing that friction from the process may drive more people to scan the QR code out of curiosity, browse the Fios options and earn Amazon credit in the process, furthering boosting brand loyalty. The QR codes also serve as an innovative way to track the number of bags scanned and measure the campaign's success.