Primal Ads’ Post

Amazon’s move to ramp up ads on Prime Video is set to test just how much advertising audiences will accept before jumping ship. Starting in 2025, Prime Video viewers can expect more frequent ads, and new formats like shoppable ads that make it possible to add items to their cart mid-episode. It's a calculated risk for Amazon, which has kept ad volumes low to avoid rattling subscribers. As Kelly Day, VP of Prime Video International, told Financial Times, Amazon chose to start with a “gentle entry” into advertising this year, and it’s paid off—churn has been “much, much less than we anticipated.” Earlier in 2024, Amazon opted all 200 million global Prime members into an ad-supported tier unless they paid extra for ad-free streaming. So far, the response has been promising: fewer than 10% of subscribers are opting to pay the additional $3 for an ad-free experience, signaling that Amazon’s experiment is working better than expected. The question is how far they can push this without sparking a backlash. In 2025, Amazon will roll out shoppable ad formats that take a more interactive approach. These ads include carousel and pause ads, allowing viewers to shop directly through their screen. Phil Christer, Amazon’s UK head of ads, describes this setup as unlocking “lower-funnel interactions,” giving brands a fresh way to drive immediate purchase intent without disrupting the viewing experience. Prime Video’s ad-supported tier already reaches an impressive 19 million viewers in the UK alone, giving advertisers a sizable audience and bolstering Amazon's influence in the ad space. Despite its massive reach, Prime Video is only a small part of Amazon’s ad revenue, which has mostly come from e-commerce so far. Ad sales recently missed forecasts, yet Amazon’s ad segment remains one of the company’s fastest-growing and highest-margin areas. By expanding ads on Prime Video, Amazon aims to make the platform a stronger contributor to its overall revenue, especially since early data shows they’ve already hit their ad-spending goal for 2025. And with competitive ad pricing reportedly lower than Netflix, Amazon may have an edge in luring brands. The real test, however, will be balancing viewer tolerance for more ads. With streaming providers like Netflix and Disney+ now opting for ad-supported models, streaming audiences are at a tipping point where every extra ad could trigger “subscription fatigue.” Amazon’s approach so far has been cautious, keeping ad volume below traditional TV levels. But if they overplay their hand, it could backfire. Thank you to Origin for sponsoring this series. Fred Godfrey

Perhaps inevitable, but nonetheless very interesting developments on Amazon Prime Video Ads announced this week. Amazon Ads are launching three new interactive ad units for Prime Video, all of which are shoppable 📺 Shoppable carousel ads, interactive pause ads and interactive trivia ads will come in the near future. As you would expect from Amazon, a seamless way to connect the streaming and shopping experience, and of course allow brands to easily measure the impact on their STV investment. https://lnkd.in/ecHiBvrx

✅🖥️ Ars Technica (5/7): “Amazon has heightened focus on streaming ads this year. Those who opted for Prime Video with commercials will soon see shoppable carousel ads, interactive pause ads, and interactive brand trivia ads, as Amazon calls them. Amazon said that advertisers could buy these new displays to be shown "across the vast majority of content on Prime Video, wherever it’s streamed." All the new ad formats allow a viewer to place advertised products in their Amazon cart. With carousel ads, subscribers will be pushed to shop "a sliding lineup of" products during ad breaks during shows and movies, Amazon said, adding: "The ad automatically pauses so that customers can browse, and automatically resumes play when ad interaction has stopped." The pause ads will be visible during Prime Video TV shows, movies, and live sports. These types of ads have been around since Hulu introduced them in 2019. Since they can show up whenever someone hits the pause button, these displays mean that Prime Video users will see ads beyond their scheduled breaks. In Prime Video's case, pausing the program will bring up "a translucent ad featuring brand messaging and imagery, along with an 'Add to Cart' and 'Learn More'" overlay, per Amazon. Advertisers can also use pause ads to acquire voluntary viewers' email addresses.” 🛒⬇️ #shoppable #ecommerce #ctvadvertising #streamingtv https://lnkd.in/eAPXRHzw

From ARS Technica: Amazon Prime Video subscribers will see new types of advertisements this broadcast year. Amazon announced today that it's adding new ad formats to its video streaming service, hoping to encourage people to interact with the ads and shop on Amazon. Amazon has heightened focus on streaming ads this year. Those who opted for Prime Video with commercials will soon see shoppable carousel ads, interactive pause ads, and interactive brand trivia ads, as Amazon calls them. Amazon said that advertisers could buy these new displays to be shown "across the vast majority of content on Prime Video, wherever it’s streamed." All the new ad formats allow a viewer to place advertised products in their Amazon cart. With carousel ads, subscribers will be pushed to shop "a sliding lineup of" products during ad breaks during shows and movies, Amazon said, adding: "The ad automatically pauses so that customers can browse, and automatically resumes play when ad interaction has stopped." The pause ads will be visible during Prime Video #TV shows, movies, and live #sports. These types of ads have been around since Hulu introduced them in 2019. Since they can show up whenever someone hits the pause button, these displays mean that Prime Video users will see ads beyond their scheduled breaks. In Prime Video's case, pausing the program will bring up "a translucent ad featuring brand messaging and imagery, along with an 'Add to Cart' and 'Learn More'" overlay, per Amazon. Advertisers can also use pause ads to acquire voluntary viewers' email addresses (so viewers can "get more information," per Amazon). Amazon trivia-themed ads will also appear during shows, movies, and live sports. The ad will try to sell stuff by offering "rewards like Amazon shopping credits." Amazon is already one of the three biggest digital #advertising firms (in addition to Alphabet Inc. and Meta). But its interest in using its #streaming service to sell ad space has grown as ad dollars continue shifting away from linear, traditional #TV platforms. The streaming industry has been trying to capitalize on advertisers' growing interest with new ad types that users can shop from. Amazon research from 2023 claims that interactive ads increase product page views and conversions for products sold on Amazon tenfold. On the other hand, Amazon has not released research publicly on how much constant ad viewing can impact the user experience or interest in a streaming service. In its Q1 2024 earnings report released on April 30, Amazon said its ad business grew 24 percent year over year. Most of Amazon's ad dollars come from its retail business, as The Hollywood Reporter noted, but in a statement at the time, Amazon CEO and President Andy Jassy noted that Prime Video & Amazon Studios was also a contributor. Like all streamers, Amazon is toeing a fine line between using ads to boost the average revenue it makes per user and aggravating subscribers to the point of cancellation.

🎬 Have you heard the recent buzz about Amazon Prime Video's new ad-supported tier coming soon? The streaming giant is entering the realm of ads directly in your viewing experience, creating a wave of curiosity among digital marketers. Here's what you should know: 🔹 January 29 marks the day ads will pop up during streaming content on Prime Video, a move reflecting the industry's tilt towards ad-supported models. Amazon's twist? Asking Prime Video users to pay extra for an ad-free stroll through their favorite shows. 🔹 Wondering about the impact on your pocket? The price remains $14.99 a month, with an additional $2.99 for an ad-free binge-watch. The change brings a strategic shift, prompting a fresh look at ad targeting on this platform. 🔹 Advertising on Amazon Prime ads comes with differing cost structures, offering a bouquet of tailored plans catering to various marketing needs. From Preferred Deals to Exclusive Sponsorships, the opportunities here seem ripe for exploration. 🔹 Prime Video promises a reduced ad load compared to traditional TV, promising a more seamless viewing experience. The effectiveness of this ad placement remains to be seen, with upcoming launches like 'Reacher' creating a buzz among advertisers. Amidst the ever-evolving landscape of OTT/CTV advertising, Amazon's move adds a new layer to the streaming dynamics. Are you ready to dive into this fresh ad frontier with Amazon Prime Video? https://lnkd.in/eFeZrPbP

From ARS Technica: Subscribers to Prime Video's ad tier will start seeing more commercials next year, further testing how much advertising streamers will tolerate. Speaking to the Financial Times today, Kelly Day, VP of Prime Video International, said that Amazon will offer more Prime Video & Amazon MGM Studios ad slots to advertisers next year. She didn't get into specifics but confirmed that Prime Video's ad load would "ramp up a little bit more into 2025." In January, when Amazon launched Prime Video's ad tier, The Wall Street Journal reported that subscribers would see an average of between two and three-and-a-half minutes of ads per hour. Day told FT today that upon launch, Prime Video with ads was given a "very light ad load," providing subscribers “gentle entry into #advertising that has exceeded customers expectations in terms of what the ad experience would be like." The executive pointed out that Prime Video with ads doesn't show commercials in the middle of content. That could change next year. Amazon is also adding shoppable ads to Prime Video in 2025, FT confirmed. The new ad format, which includes carousel ads, pause ads, and brand trivia ads—is being sold to advertisers as a new way to attract #TV and movie viewing audiences that have become more elusive in the #streaming age. According to Day, subscriber churn in response to the ads has "been much, much less than we anticipated." Amazon says Prime Video has 200 million monthly viewers and that subscriber count hasn't dropped dramatically since it got ads. Similarly, market research firm Antenna told FT in July that a substantial amount of Prime Video subscribers opted out of ads initially, but that number soon "trailed off." By May, fewer than a 10th of subscribers were paying for an ad-free subscription, Antenna said. Despite forcing all of Prime Video subscribers to the ad tier in January unless they paid an extra $3 per month, Amazon has seemingly yet to tap Prime Video's full ad potential. Amazon's ad business still mostly relies on ads shown on the Amazon website, Amazon CFO Brian Olsavsky told investors in August. In the first full quarter when Prime Video with ads was available, Amazon's ad business grew more slowly than expected than in recent quarters, with ad sales missing analyst estimates ($12.77 billion compared to $13 billion). That said, ads remain one of Amazon's fastest-growing and highest-margin businesses, and the conglomerate is keen to cultivate it. Amazon has reportedly already surpassed its ad-spending commitment goal for Prime Video for 2025. Amazon has also been competitive in ad pricing, reportedly offering lower prices than Netflix, while creating an early advantage by forcing all of its subscribers onto ad tiers and by already appealing to advertisers with its e-commerce business.

Prime Video now understands “they need premium content and celebrities in order to attract advertisers,” said Jessica Brown, managing director of digital investment for media buyer GroupM. “Before, they had the reach and scale, but they didn’t have the content story." "You need to be culturally relevant,” she said. Over the past few years, Amazon has made astute strategic moves, significantly transforming its service from its nascent stages. Notably, their focus on female-oriented film and television, alongside calculated investments in high-profile intellectual property, has been particularly impressive. I firmly believe these two categories represent sound investments. Both have well-defined audiences, meaning that if executed proficiently, the associated risk is minimal. Moreover, should the target audience resonate with the projects, the potential for major success is substantial. As I have repeatedly emphasised, the female demographic remains not just undervalued, but profoundly so within the entertainment industry. An enormous opportunity that cannot be overstated. In terms of high-stakes investments, Amazon's strategy has been notably shrewd. Streaming, platforms were notorious for burning through budgets, paying exorbitant fees to talent for prestige limited series that often failed to attract significant viewership and lacked enduring appeal. However, Amazon, perhaps driven by the imperatives of its advertising model (i.e., content must attract and retain viewers), seems to have internalised a critical lesson: when making substantial financial commitments, the content must be commercially viable with broad audience appeal. While the ideal combination includes STRONG IP, flawless execution, and top-tier talent, it’s better to secure the first two and then align them with suitable talent. Amazon’s foresight in recognising the potential of video game IP ahead of many of its competitors is commendable. The Fallout series is a resounding success, with other similarly promising productions in the pipeline. In a significant challenge to traditional studios, Amazon plans to more than double its number of theatrical releases, increasing from six this year to as many as 16 by 2027, according to a report from Reuters. This level of output would place Amazon in direct competition with Hollywood's most prolific studio, Universal Pictures. Moreover, Prime Video has ramped up its spending, increasing its budget by $1.7 billion to $13.6 billion this year, as estimated by market researcher Ampere Analysis. This increased investment reflects Amazon's deepening commitment to its efforts to expand content production, even as other studios are tightening their content budgets. However, there remains some uncertainty surrounding Amazon’s theatrical strategy, and it will be intriguing to observe how this aspect of their approach develops. 💡

🔴 So, Mr Beast's show deal with Amazon Prime Video is shaping up to be an interesting test case for how social video and streaming TV will co-exist in the future. Here are a few thoughts: 🤳 Why is this different? Mr Beast claims to have total creative control over Beast Games on Prime Video. So, this will be a show shaped with a creator mindset. As opposed to streaming TV service trying to milk a creator's fandom by sticking them in a film etc. 💲 Is this an emerging trend? As well as Mr Beast, Prime Video has commissioned Hazbin Hotel, the adult animation created by YouTuber Vivienne Medrano (aka Vivziepop). Prime secured Hazbin after the pilot popped off on YouTube. Maybe social video will become device for market testing streaming TV formats. 🗣 Can creators replicate their success without social engagement tools? Unless Prime pulls a rabbit out of the hat, fans of Mr Beast will not be able to indulge in all the social behaviours they enjoy on YouTube with Beast Games. Will this impact engagement, or not matter? If the former, then questions will be asked as to why Prime did not prepare the platform with the right social tools before commissioning one of the world's biggest content creators. 🛒 What will be the benchmarks for success for the Mr Beast show? Beast Games is an opportunity to get more marketeers comfortable with Prime's new advertising tier by using an uncontroversial creator that advertisers love. Prime will also be hopeful that they encourage some Mr Beast fans to buy their own Prime subscription rather than using their parents. And, this is Amazon, so expect them to want engagement funnelled into the everything store as well. 😱 Should YouTube be worried that its creators may jump ship to Hollywood? Not really. These deals would only become an issue for YouTube and TikTok if the creator abandoned the social video platforms in favor of streaming TV. Even then, the streaming TV show would still help to drive audiences towards the creators social video channel, where the content will reside for free. I expect content creators on the scale of Mr Beast will use streaming TV as another channel for tapping into new audiences. Much like do when creating across multiple social video platforms like YouTube, TikTok, Twitch and Instagram. 🌎 Will this mean other superstar creators will make the leap into streaming TV? Not all content creators have the production quality and scale of Mr Beast. Streaming TV deals will be limited to the biggest creators who have a significant global audience. Streaming TV audiences want content that can resonate across multiple territories, not just the US or Europe. More in the blog post here 👇 #MrBeast #PrimeVideo #BeastGames #creatoreconomy #streamingTV https://lnkd.in/dJ-atTKu

Amazon Ads unveiled three new interactive ad formats for Prime Video with remote-enabled capabilities for living-room devices. The following ad types are designed to make it easier for viewers to connect with brands while streaming premium content: - Shoppable Carousel Ads: Brands can present a sliding lineup of their products that customers can explore on Amazon and add to their cart using most living-room remotes. The ad automatically pauses so that customers can browse, and automatically resumes play when ad interaction has stopped. - Interactive Pause Ads: When viewers press pause on their living-room remote, they will see a translucent ad featuring brand messaging and imagery, along with an “Add to Cart” and “Learn More” creative overlay. - Interactive Brand Trivia Ads: These ads help advertisers elevate their storytelling by entertaining customers with factoids about their brand while giving them the opportunity to shop on Amazon, learn more about services and products, and even unlock rewards. The introduction of living-room remote capabilities significantly expands the opportunity for advertisers to use interactive formats across the vast majority of content on Prime Video. According to Amazon data, interactive ads drive 10x more product page views and conversions than non-interactive formats. Learn more at https://lnkd.in/gNtVgDQW. #ChannelKeyLLC #AmazonAgency #AmazonNews #AmazonAds #Amazon #Ecommerce

#FridayFind: Amazon Ads is offering three new interactive ad formats for Prime Video, that allow viewers to engage with brands directly using their living-room remotes: 1. Shoppable carousel ads enable browsing and purchasing products during ad breaks.  2. Interactive pause ads present brand messaging when viewers pause content 3. Brand trivia ads entertain and inform, enhancing customer interaction.  These innovative formats create more opportunity to offer brands a seamless, engaging, and shoppable advertising experience and connect customers closer to the point of purchase. #marketing #amazonads #advertising #interactiveads