Full-funnel marketing with Amazon – Amazon launches placements on Prime Video in 2024
You may have heard that Amazon is planning big things to expand its advertising offering, giving advertisers and marketers a new way to reach their target audiences. In this blog article, you’ll learn all about Amazon’s latest plans that could change the marketing game. Amazon will introduce ad slots on its popular Prime Video service in 2024. This news has attracted a lot of attention in recent weeks and promises to take full-funnel marketing to a new level.
Amazon Prime Video opens up to advertising
The latest news from Amazon states that the company plans to integrate ads into its Prime Video service. This means that viewers who use Prime Video may experience advertising in the near future. This is a notable development as in the past Amazon has mainly relied on subscription models and selling products. By introducing advertising on Prime Video, Amazon is entering a new playing field that will allow companies to reach its huge viewer base.
When will this happen?
The launch of advertising on Prime Video is expected to begin in early 2024. Initially, customers in the US, UK, Canada and Germany will be able to enjoy ad space. Later in 2024, users in France, Italy, Spain, Mexico and Australia will also be able to see ads. This phased approach will allow Amazon to test the impact of advertising on different markets and ensure that the experience is optimised for viewers.
Fewer ads than on TV
The good news for those worried about an excessive amount of advertising on Prime Video is that Amazon emphasises that the number of ads will be limited. In fact, the company plans to show “significantly fewer ads than on traditional linear TV and other streaming providers.” This is an important mention as it indicates that Amazon is committed to balancing advertising and content to preserve the user experience.
The option of an ad-free alternative
For those who want absolutely no advertising in their streaming experience, there is an option. In the US, users who prefer an ad-free experience can do so by paying a monthly surcharge of $3. The availability of an ad-free alternative in other countries will be announced at a later date. This approach gives viewers freedom of choice and allows Amazon to offer different pricing structures.
No price increase for Prime memberships
An important piece of information for current Amazon Prime members is that Amazon has no plans to increase prices for Prime memberships in 2024. This means that the introduction of advertising on Prime Video will have no direct impact on the cost of your Prime membership.
Review of Prime Video
Reviews of Prime Video are mixed. CNET calls it a “really great inclusive extra” for Prime members. However, it also points out that as a standalone service, Prime Video might be a little weaker compared to other options like Netflix and Hulu. It’s worth checking to see if Prime Video suits your individual viewing habits.
Trends in the streaming industry
The introduction of advertising on Prime Video is part of a broader trend in the streaming industry. Both Netflix and Disney+ introduced ad-supported plans last year, joining most other major streaming services, including Max (formerly HBO Max) and Hulu, which offer advertising plans. Pricing for these ad-supported plans varies by provider, with some offering lower-cost options and others offering more expensive deals.
Amazon’s experience with ad-supported streaming
Amazon already has experience in ad-supported streaming through its Amazon Freevee service, formerly known as IMDb TV. This streaming service requires no paid membership and is supported by limited advertising. It includes a mix of original content from Amazon and Freevee, as well as other films and series. There is even a Freevee channel for Prime Video.
The introduction of advertising on Prime Video is a significant step for Amazon and an interesting turning point in the streaming industry. This decision opens another gateway for advertisers to reach their target audiences. The ability to watch fewer ads or choose an ad-free option for an additional fee gives viewers more control over their streaming experience. It remains to be seen how this move will affect the landscape of full-funnel marketing and viewer habits, but it is certainly a development to watch. Amazon already has a strong influence on retail and digital advertising, and the introduction of advertising on Prime Video could further strengthen that influence. We will continue to monitor developments in this area closely. Stay tuned!
Patrick is our Head of Retail Media. With many years of experience in selling on marketplaces, he advises you on marketing and content. He also supports you with the right marketplace setup to accelerate the growth of your business. Contact him by mail or by phone at +49 89 215 276 60.