Could your next big marketing opportunity lie between the scenes of your favorite series on Prime Video? With TV series, blockbuster movies, Amazon Originals and live sports, Prime Video offers a premium entertainment platform used by over 167 million viewers. With Prime Video Ads (PVA), for the first time, advertisers now have the opportunity to reach a global streaming audience at scale as they stream on desktops, mobile devices and connected TVs (CTVs).
Over the course of calendar year 2024, video ads in Prime Video content will be launched in 10 countries, giving advertisers a new opportunity to showcase their brand.
What are Prime Video Ads?
Prime Video Ads are a new advertising format and offer companies the opportunity to reach customers while they are using the Prime Video app. The ad placements are available for both transactional video-on-demand (TVOD) and prime video channels (PVC).
Technical functionality of CTV (Connected TV) Ads:
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What are the advantages of CTV ads over ads on linear TV?
In contrast to the pouring-can approach of linear television, CTV ads enable a more precise and targeted audience approach. Advertisers can take specific demographic characteristics, interests and the search and purchase history of their target groups into account and target your ads accordingly. This targeted approach increases the relevance of the ads and the likelihood of interaction or conversion.
In addition, CTV enables detailed measurability of advertising performance. Advertisers gain extensive insights into viewer interactions with ads, including data on impressions, clicks, conversions and much more. This measurability makes it possible to optimize campaigns in real time and continuously improve their success.
Comparison between Prime Video Ads and ads on linear television:
| Prime Video Ads | Ads on linear televison | |
| Targeting options |
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| Measurability of the results |
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| Optimization possibilities |
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Who can use Prime Video Ads?
Prime Video Ads are available to qualified brands, marketplace sellers and agencies. Businesses have the option to use Prime Video ads regardless of whether they sell products on Amazon or not.
Currently, Prime Video Ads are available in the US, UK, Canada, Germany and Austria (March 2024). France, Italy, Spain and Mexico will follow in spring.
Where do the ads appear?
Prime Video ads are placed in Amazon Originals and licensed third-party content that is part of a Prime membership. Ads are displayed both before and during playback, with the frequency varying depending on the title. Amazon's goal is to offer an advertising experience that is significantly less disruptive compared to linear TV and other streaming services. Customers will also not see ads when watching content via a Kids profile on Prime Video.
How do Prime Video Ads work?
Prime Video Ads are available via the Amazon Demand-Side Platform (ADSP). This platform allows advertisers to target specific demographics or lifestyle audiences, be it fashion fans, pet lovers or car enthusiasts. By using the Amazon DSP, brands can direct their messages precisely to the target groups that are most relevant and important to their brand.
Prime Video Ads run via so-called deals.
"Preferred Deals" can be selected from Amazon's deal portfolio. Here it is possible to use Preferred Deals for certain movie genres, such as Comedy, Action or Best Movies.
"Guaranteed Deals" must be negotiated with the Amazon Ads partner. However, these are not yet available for PV.
The cost-per-mille (CPM, price per thousand contacts) depends on the length of the video. Currently (March 2024), customers can choose between 15/20 second or 30 second deals. The prices depend on the deals used. The CPM is currently between €20.40 and €26.
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Deals |
Deal type |
Price (Fixed CPM) |
|
Prime Video | Preferred Deal | Video | DE - 15, 20 - Drama |
Preferred deal |
€22,10 |
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Prime Video | Preferred Deal | Video | DE - 15, 20 - ROS |
Preferred deal |
€20,40 |
|
Prime Video | Preferred Deal | Video | DE - 30 - Drama |
Preferred deal |
€26,00 |
|
Prime Video | Preferred Deal | Video | DE - 30 - ROS |
Preferred deal |
€24,00 |
|
Prime Video | Preferred Deal | Video | DE - 30 - Comedy |
Preferred deal |
€26,00 |
Compared to Sponsored Product Ads or Sponsored Brands, the CPM for Prime Video Ads is higher. However, the CPM for a 30-second video on Twitch is €26.40 and would therefore be slightly more expensive than PVA. It should also be noted that the CPM is still cheaper than conventional TV advertising.
It should also be noted that with Prime Video Ads, target groups can be addressed much more granularly and precisely than with conventional TV advertising, which appeals to a broad mass. This enables more effective use of the advertising budget and greater relevance for viewers.
When evaluating CTV ads, it is crucial to focus on key figures such as the click-through rate (CTR) and reach. CTR indicates how effective an ad is and how well it engages viewers, while reach shows how many people have seen the ad. In addition, special attention should be paid to "New-To-Brand Orders", as these indicate how many new customers were acquired through the advertising campaign. This metric is crucial to measure the actual impact of CTV ads on customer acquisition and to evaluate the ROI of the campaign.
What are the advantages of Prime Video Ads for advertisers?
The use of Prime Video Ads offers a number of advantages.
Ready-to-buy viewers
Prime Video Ads already reached an estimated 115 million viewers per month in the USA when they were launched. This new form of advertising gives brands the opportunity to reach their target group at the interface between entertainment and retail.
Amazon has published data that provides insights into the shopping behavior and preferences of households with Prime Video. These figures illustrate the impact and presence of Prime Video and how it influences the online shopping experience.
- Households with Prime Video make an average of 22% more purchases in the Amazon store each month compared to households without Prime Video.
- On average, 84% of Prime Video households have already shopped on Amazon.
- Prime Video households are 25% more likely to have an annual household income of over $150,000.
- Streaming TV campaigns that utilize Amazon's first-party lifestyle audiences see an average 10% increase in product detail page view rate and a 6% increase in "add to cart" rate.
Effective success measurement
Amazon Ads provides powerful performance measurement tools to help you drive your Prime Video campaign at every stage, from planning to activation to measurement. By leveraging Amazon's exclusive first-party signals and tools, brands can improve their results and reach a greater number of relevant audiences.
In addition, Prime Video ads enable the tracking and measurement of viewer engagement and interactions. Together with the Amazon Marketing Cloud, this enables advertisers to continuously optimize and improve the effectiveness of their campaigns.
Low entry barriers and low competition
There is currently no minimum starting price to get started with Prime Video Ads, making it possible to test the new advertising format without taking too great a financial risk. In addition, there are currently still few advertisers using the format and therefore little competition. Campaigns can be implemented quickly if existing deals and flawless video assets are used. An average timeframe of around three working days can be used as a guideline for implementation.
To use the Amazon DSP and thus also Prime Video Ads, you can work with a registered DSP partner such as BidX. As a certified Amazon Ads Advanced Partner, BidX offers a variety of benefits that go beyond mere access to the DSP. Our experts have extensive knowledge of DSP advertising and have successfully managed eight-figure DSP advertising budgets. With BidX, you benefit from cost-effective management fees, comprehensive support, full setup of your campaigns, ongoing optimization, strategic consulting, regular reporting with insights from the AMC and much more. Learn more about the benefits of Prime Video Ads and BidX in a demo call.
Conclusion
Prime Video Ads offer advertisers a unique opportunity to reach their target audiences on a global streaming platform. With millions of viewers worldwide and the integration of first-party data from Amazon, Prime Video ads enable precise and effective targeting of potential customers. Currently, there is still sufficient playout inventory available, but this will change in the future, making it more difficult to place ads. It is therefore advisable to act now and take advantage of this opportunity while there are still sufficient ad placements available.
Amazon is also working on other ad formats that will be displayed within the Prime Video app as tiles, channels or carousels. You can already get an insight into these ad formats here.
Overall, Prime Video Ads open up new opportunities for companies to expand their reach and increase the success of their marketing campaigns. With the support of certified Amazon Ads partners like BidX, advertisers can realize the full potential of Prime Video Ads and effectively achieve their business goals.
Act now and be one of the first to increase your reach with Prime Video Ads! Schedule a demo call with BidX today to learn how we can help you achieve your marketing goals.
