Prime Video Rolls Out Advertising

If you’re a Prime member, check your e-mail. Amazon sent out a notice to its Prime customers that as of 1/29/24, Prime Video will now have ads. This will include the MGM catalog of content that Amazon owns, as well as all original Amazon programming (Marvelous Mrs. Mazel, The Summer I Turned Pretty, Daisy Jones & the Six, etc.). Advertisements are already on Amazon’s Freevee and Thursday Night Football. As a consumer, you may be annoyed with this change, why am I getting ads on a service I pay for?

But for advertisers, this is great news. Amazon has a wealth of data on its customers, all of which can be leveraged to target the right audience. And unlike other streaming services that have introduced advertising, the option to activate a buy on the local level is (supposedly) there. Often when a streaming or audio platform rolls out advertising it begins on the national level, and slowly over time, it becomes available by state, then DMA, then county, and eventually (if ever) by zip code. This is usually dependent on how quickly the platform can get a sales team up and running. Luckily for Amazon, they already have localized sales teams in place. Media Works has been working with Amazon on a local level for audio & digital campaigns for a couple of years, and it is exciting to now have a video option in the mix.

But back to Prime Video.  They are estimating the monthly reach of Prime Video ads in the U.S will be 115MM+. 84% of Prime Video households have shopped on Amazon in the last month, and are +25% more likely to have a household income of $150k+. The demographics of the viewer skew on the younger side, with 54% between 18-44, and 40% of households have children under 18 in the home. A trend that seems to be on the rise, 59% of Prime Viewers do not subscribe to cable.

Although this will be another great option in CTV for advertisers, it does continue to splinter the streaming video ecosystem. There are a lot of options for an advertiser to place their video budget, and it can get complicated when trying to pinpoint the right place & time to reach your target audience in this space.

Written by VP Marketing & Growth, Beth Cyphers

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