How Amazon's First Advertisement Set the Stage for Its Success
Hi everyone, welcome to another article on the history of e-commerce. Today, we are going to explore how Amazon's first advertisement, posted by Jeff Bezos 25 years ago, helped shape the company's vision and strategy for becoming the world's largest online retailer.
Amazon is a household name today, with millions of customers and products across various categories. But how did it all start? What was the first step that Bezos took to launch his ambitious venture? And what can we learn from his approach to marketing and innovation? Let's find out!
The Origin Story of Amazon
Bezos's Regret Minimization Framework
Before he founded Amazon, Bezos was a successful vice president at D. E. Shaw & Co., a Wall Street firm. He was earning a six-figure salary and had a promising career ahead of him. But he was also fascinated by the potential of the Internet, which was still in its infancy in 1994.
He read a report that projected annual web commerce growth at 2,300%, and decided to quit his job and start his own online business. He applied what he called his "regret minimization framework", which was a way of making decisions based on minimizing future regrets. He asked himself what he would regret more: staying at his current job or trying something new and risky. He chose the latter, and moved to Seattle with his wife to work on his business plan.[^1^]
The Idea of Selling Books Online
Bezos had a list of 20 products that he thought could be sold online, such as compact discs, computer hardware, software, videos, and books. He narrowed down the list to five most promising products, and then chose books as his first product category.[^2^]
He had several reasons for choosing books. First, books had a large worldwide demand and a low unit price, which made them suitable for online sales. Second, books had a huge number of titles available in print, which meant that he could offer a wider selection than any physical bookstore. Third, books were easy to ship and store, which reduced the operational costs and risks.[^2^]
The Name and Logo of Amazon
Bezos initially incorporated his company in Washington state with the name Cadabra, Inc., but he soon changed it to Amazon.com, Inc., because he thought that Cadabra sounded too much like "cadaver".[^2^]
He chose Amazon as his company name because it was a place that was "exotic and different", just as he envisioned his online enterprise. He also liked that the Amazon River was the biggest river in the world, and he wanted to make his store the biggest bookstore in the world.[^2^]
The logo of Amazon has also evolved over time. The first logo featured a stylized A with a river running through it. The second logo had the company name in black with an orange arrow underneath it, pointing from A to Z. This logo implied that Amazon sold everything from A to Z, and also formed a smiley face that suggested customer satisfaction. The current logo is similar to the second one, but with a more modern font and color scheme.[^3^]
The First Advertisement of Amazon
The Job Posting on Usenet
The first advertisement that Bezos posted for Amazon was not a typical ad for customers, but rather a job posting for programmers. He posted it on Usenet, an early online public bulletin board and discussion network, on August 22, 1994.[^1^]
The ad read:```Well-capitalized start-up seeks extremely talented C/C++/Unix developers to help pioneer commerce on the Internet. You must have experience designing and building large and complex (yet maintainable) systems, and you should be able to do so in about one-third the time that most competent people think possible. You should have a BS, MS, or PhD in Computer Science or the equivalent. Top-notch communication skills are essential. Familiarity with web servers and HTML would be helpful but is not necessary.Expect talented, motivated, intense, and interesting co-workers. Must be willing to relocate to the Seattle area (we will help cover moving costs).Your compensation will include meaningful equity ownership.Send resume and code samples to Jeff Bezos:mail: jeff@amazon.comfax: 206-828-0951US mail: Cadabra, Inc.10704 N.E. 28th St.Bellevue, WA 98004We are an equal opportunity employer.```The ad ended with a quote from computer scientist Alan Kay: "It's easier to invent the future than to predict it."[^1^]
The Criteria and Expectations for the Candidates
The job posting revealed a lot about Bezos's vision and expectations for his company. He was looking for extremely talented, motivated, and intense programmers who could design and build large and complex systems in a fraction of the time that others would take. He was also looking for people who had excellent communication skills and were willing to relocate to Seattle, where he had set up his office in his garage.[^1^]
He offered meaningful equity ownership as part of the compensation, which showed that he was confident in his business idea and wanted to share the rewards with his employees. He also stated that he was an equal opportunity employer, which indicated that he valued diversity and inclusion.[^1^]
The Response and Outcome of the Ad
The job posting attracted a lot of attention and responses from programmers who were interested in working for Amazon. Bezos reviewed the applications personally and interviewed the candidates over the phone. He was very selective and hired only the best of the best.[^1^]
Some of the early hires that Bezos made through the ad were:- Shel Kaphan, who became the first employee and chief technology officer of Amazon. He was responsible for building the website, database, and software architecture of the company.[^4^]- Paul Davis, who became the second employee and software engineer of Amazon. He worked on developing the online catalog, search engine, and recommendation system of the company.- Nicholas Lovejoy, who became the third employee and operations manager of Amazon. He handled the inventory, fulfillment, and customer service aspects of the company.
These early hires helped Bezos launch Amazon.com on July 16, 1995, as an online bookstore that offered over one million titles. The company soon expanded into other product categories and markets, and became one of the most successful and influential companies in history.[^2^]
A Breakdown of Amazon's Advertising Business
Amazon's first advertisement was a job posting for programmers, but over time, the company has developed a sophisticated and lucrative advertising business that generates billions of dollars in revenue. Here is a breakdown of Amazon's advertising business as of 2022:
| Category | Description | Revenue (in billion USD) |
|---|---|---|
| Sponsored Products | Ads that appear on search results pages and product detail pages, based on keywords and relevance. | 18.7 |
| Sponsored Brands | Ads that showcase a brand logo, a headline, and multiple products, usually at the top or bottom of search results pages. | 6.2 |
| Sponsored Display | Ads that target audiences based on their shopping behavior, interests, or demographics, both on and off Amazon. | 2.8 |
| Amazon DSP | A demand-side platform that allows advertisers to programmatically buy display, video, and audio ads across Amazon sites, apps, devices, and third-party publishers. | 1.9 |
| Amazon Advertising Platform | A self-service platform that allows advertisers to create and manage campaigns across various formats and channels. | 0.9 |
| Other | Other advertising products and services such as audio ads, IMDb TV ads, Fire TV ads, Twitch ads, etc. | 0.5 |
| Total | 31 |
Frequently Asked Questions About Amazon's First Advertisement
When did Jeff Bezos post Amazon's first advertisement?
Jeff Bezos posted Amazon's first advertisement on August 22, 1994.[^1^]
Where did Jeff Bezos post Amazon's first advertisement?
Jeff Bezos posted Amazon's first advertisement on Usenet, an early online public bulletin board and discussion network.[^1^]
What was the purpose of Amazon's first advertisement?
The purpose of Amazon's first advertisement was to recruit extremely talented programmers to help pioneer commerce on the Internet.[^1^]
What was the name of Amazon's first advertisement?
The name of Amazon's first advertisement was "Well-capitalized start-up seeks extremely talented C/C++/Unix developers".[^1^]
What were the requirements for applying to.Amazon's first advertisement to the candidates?
The requirements for applying to Amazon's first advertisement were:- Experience in designing and building large and complex (yet maintainable) systems.- Ability to do so in about one-third the time that most competent people think possible.- A BS, MS, or PhD in Computer Science or the equivalent.- Top-notch communication skills.- Familiarity with web servers and HTML (optional).- Willingness to relocate to Seattle (with moving costs covered).- A resume and code samples.
How many people responded to Amazon's first advertisement?
There is no exact number of how many people responded to Amazon's first advertisement, but according to Bezos, he received "a flood of responses".
How many people did Jeff Bezos hire from Amazon's first advertisement?
Jeff Bezos hired three people from Amazon's first advertisement: Shel Kaphan, Paul Davis, and Nicholas Lovejoy.
What was the compensation for working at Amazon in 1994?
The compensation for working at Amazon in 1994 included a salary, benefits, and meaningful equity ownership. The exact amount of each component is not publicly known, but according to Kaphan, he received "a very generous stock option grant".
What was the quote that Jeff Bezos used at the end of Amazon's first advertisement?
The quote that Jeff Bezos used at the end of Amazon's first advertisement was "It's easier to invent the future than to predict it." It was said by Alan Kay, a computer scientist and pioneer of object-oriented programming and graphical user interfaces.
Conclusion
We hope you enjoyed this article on how Amazon's first advertisement set the stage for its success. We learned about the origin story of Amazon, the idea of selling books online, the name and logo of Amazon, the job posting on Usenet, the criteria and expectations for the candidates, the response and outcome of the ad, and a breakdown of Amazon's advertising business. We also answered some frequently asked questions about Amazon's first advertisement.
If you liked this article, please check out our other articles on the history of e-commerce and online marketing. And don't forget to share your thoughts and feedback in the comments section below. Thank you for reading!
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