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Expanded CTV/OTT ad inventory drops on January 29 on Amazon Prime with the streaming giant’s introduction of an ad-supported tier.
Learn more about Amazon Prime Video’s recent announcement, shedding light on its decision to introduce an ad-supported tier and what it means for digital marketing.
While they have historically featured ads on Amazon Prime’s homepage and alongside content library navigation, this change will show commercials during streaming content itself.
This move is not surprising, given the industry’s trend toward ad-supported tiers but Amazon’s approach is an intriguing new one. Rather than offering a cheaper ad-supported option, it asks current Prime Video users to pay a monthly fee to enjoy an ad-free experience.
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Prime Video will introduce ads on January 29, 2024. This specific date was revealed only recently, although Amazon initially announced the move in September.
The price for Prime Video with ads remains the same as what Amazon Prime members currently pay: $14.99 a month or $139 a year. Customers who prefer an ad-free experience will now have the option to pay an additional $2.99 monthly on top of your standard Prime membership fee.
Streaming ads can be purchased directly through Amazon via the Amazon DSP or through a digital marketing partner.
Advertising on Amazon Prime comes with different cost structures based on the chosen plan. The most economical option is the Preferred Deal, which has a base CPM (cost per thousand viewers reached) of $26. The exact costs for these plans are not specified, but some details recently revealed details include:
Amazon Prime Video’s ad experience assures “meaningfully fewer ads than linear TV and other streaming TV providers,” although the exact number of ads per hour remains unspecified. Typically, most streaming services offer 4-5 minutes of ads per hour in their ad-supported plans.
It’s important to note that these ads are exclusive to streaming Prime Video titles and do not impact specific TV shows or movies purchased or rented on Amazon.
As this offering is so new, it’s still unclear whether this new ad placement will surpass or match the effectiveness of current inventory options. The launch at the end of this month will provide further context regarding effectiveness and ad numbers. With the prospect of advertising during big blockbusters like Reacher, The Summer I Turned Pretty, or Saltburn, digital marketers will have to wait and see how many Prime watchers pay a $2.99 fee to skip ads entirely.
Are you immediately excited and inclined to jump on this new advertising opportunity?
➡️ If so, you might have Shiny Object Syndrome.
The introduction of ads on Prime Video aligns with the broader industry trend. Streaming services are exploring ad-supported tiers to boost revenue and meet market demands for profitability. While somewhat late to this trend, Amazon is following in the footsteps of other major players like HBO Max, Netflix, and Disney+.
About the Author
Kaylee Pope is the Content Strategy Director here at KORTX. When she is not writing blogs or crafting strategy, she enjoys time outdoors with her cattle dog mix, exploring Detroit restaurants, and a good book.
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