Amazon is working on a new way to publish and monetize video ad campaigns for Amazon sellers. Targeting Amazon Prime members, Prime Video Ads could soon be part of your advertising portfolio. Find out how these streaming ads could increase your Amazon sales and spur your profits.
As a top global technology company, Amazon engages in much more than e-commerce. It also provides digital streaming, advertising, AI, healthcare, and cloud computing. On top of all this, it produces films, builds self-driving cars, launches satellite constellations, and dabbles in space tourism.
Much of this success is due to the Amazon Prime subscription service. It caters to over 200 million members worldwide, according to Exploding Topics. It comes with perks like free delivery, exclusive deals, photo storage, e-books, music, cheaper prescriptions, gaming benefits, and award-winning TV.
This service portfolio is not only complex, but also very dynamic. For instance, Amazon’s streaming service, Prime Video, is moving on with the times. Like YouTube and Netflix, it now applies the ad-supported video on demand (AVOD) model. It’s forecast to raise another $5.2 billion in annual revenue, according to Morgan Stanley estimates quoted by Lengow.
In a recent blog post, Amazon claims that Prime Video Ads allow brands to place ads within streaming content viewed by Prime members. These ads can reach a vast audience engaged in premium content, making it an excellent channel for brand exposure. Here are some of this service’s much touted benefits:
- Wide Reach. Prime Video ads reach millions of viewers across desktop, mobile, and connected TV.
- Premium Content. Ads appear alongside critically acclaimed TV series and blockbuster movies, enhancing brand prestige.
- Targeted Advertising. They make use of Amazon’s first-party data to target specific demographics.
The Launch of Prime Video Ad Free
Back in Sep. 2023, Amazon announced that Prime Video shows will include ads starting early this year. But an ad-free option would be available for an extra charge of $2.99/month. On Feb. 5, 2024, the ad-free subscription service went live. So, viewers now pay this on top of their Prime fee to enjoy ad-free content.
Ad-Free subscriptions aren’t shared across Amazon Households. So, viewers need to subscribe on every Amazon account. Even with a subscription, Amazon Freevee content and live events still feature ads. Promotional trailers will also run, where available. But there are no ads on Prime Video Kids profiles.
What does this mean for Amazon sellers? Most viewers will probably not fork out another monthly fee for ad-free content. So, advertising on Prime Video is a major opportunity for sellers to tap into a vast market, advertise more effectively, and boost their revenue. Let’s look at how Amazon sellers across all segments can use Prime Video Ads to increase sales and revenue.
Understanding Amazon Prime Video Ads
The mainstay of Prime Video Ads is that it enables brands to showcase their products alongside premium content on Prime Video. Their commercials can run before, during, or after the streamed content. So, engaged viewers are very likely to watch them and remember them.
This service is available to eligible brands, sellers, vendors and agencies, whether they sell on Amazon or not. Virtually any business can now run their ads on Prime Video in the US, UK, Germany, Austria, Canada, France, Italy, Spain, and Mexico. Australia will also join the list later this year.
As mentioned in this blog post and the YouTube tutorial below, Prime video ads can reach 115 million monthly viewers in the USA alone. But not just any viewers. Prime Video households tend to have a larger income, shop more on Amazon, and spend more than others. So, Prime Video Ads can lead to a considerable rise in detail page views and add-to-cart rates.
Types of Prime Video Ads
Your Amazon video ads can appear in a variety of locales and on several platforms, not just Prime Video (e.g., Amazon, Twitch, Freevee, imdb.com). But if you want to set up Prime Video ads only, there are both self-service and managed packages available on Amazon DSP.
The original help page on Prime Video ads is no longer available, but it made clear that these ads would run on Amazon Originals and any licensed third-party content available to Prime members, during pre- and mid-roll ad breaks. But they would be fewer and cheaper than TV ads and competitor streaming ads.
As the sign-up page for Prime Video Ads is disabled, we can infer that Amazon is still working on its offering. But based on the limited information available online, we know that Prime Video ads will come in several flavors:
- In-Stream Ads. They play before, during, or after content, similar to traditional TV commercials, and are part of the Streaming TV ads package.
- Pause Ads. These are static and non-intrusive, popping up when viewers pause their video.
- Display Ads. These are banner ads that appear on the Prime Video interface, driving awareness as viewers browse the catalog. Below are 3 such types of ads already available to advertisers.
1. Feature Rotator
The Prime Video Feature Rotator is the ad carousel shown at the very top of the home screen. This hero image fills up most of the screen, so it comes with strict guidelines. On desktop devices and Connected TV, it auto-rotates every 5 seconds. On mobile devices, the slots are static.
2. Sponsored Tiles
Prime Video Sponsored Tiles appear on the Home, Store, or Channels page as one of the first 5 tiles on a sponsored row. Selecting a tile will display a mini-details page, followed by a trailer video. Channel and TVOD advertisers who own several of these assets can direct viewers to their entire collection on the Channels page. To upload these assets, advertisers should work with a Prime Video partner.
3. Sponsored Channels
These ad placements show up in the “My Subscription” row on the home page. They take viewers who click on the ads to the advertiser’s channel, so that viewers can add channels to their subscription list. The aim is to drive channel subscriptions. As above, it’s best to seek help from a Prime Video partner to upload these assets.
Strategies for Increasing Revenue with Prime Video Ads
1. Target the Right Audience
With Prime Video Ads, you can target specific viewers based on demographics, interests, and viewing habits. That way, your ads are more likely to reach viewers who already have some interest in your products. To make the most of this opportunity, be sure to:
- Segment your audience based on product relevance and potential interest.
- Use these insights along with the ones you get from Amazon Audiences and the Persona Builder to refine your targeting criteria.
- Customize ads for different segments to increase relevance and engagement.
2. Create Compelling Video Content
By their very nature, videos are more eye-catching than other content. But high-quality, engaging video content is crucial for capturing the attention of Prime Video viewers. Your ads should be visually appealing and concise, conveying your brand’s message effectively. Here’s how to do just that:
- Use storytelling techniques to create a connection with viewers.
- Highlight the key benefits and USPs of your products.
- Include clear CTAs to drive immediate responses.
3. Optimize Ad Placement
Finding the right placement for your video ad is half the battle. So, put yourself in the shoes of your target viewer and choose the type of ad that they’re most likely to see and engage with. Once you have a general idea, dig deeper for the best solution:
- Test different ad placements (pre-roll, mid-roll) to see which performs best and how the timing might affect the viewing.
- Opt for pause ads if you want a non-intrusive yet highly visible option, especially if the content is likely to be sensitive or triggering.
- Use data and analytics to adjust your strategy based on performance.
4. Leverage Data and Analytics
Amazon provides robust analytics to monitor the performance of your video ads. Use them to refine your campaigns, improve targeting, and maximize ROI. You can learn about ways to measure your campaign’s impact by taking a few e-learning courses for the Amazon Video Ads Certification. Then simply apply what you learned:
- Track advertising metrics such as view-through rate (VTR) and click-through rate (CTR).
- Regularly review performance data to make informed adjustments to your ads.
- Analyze which video marketing creatives and placements drive the best results.
5. Integrate with Other Amazon Advertising
You can combine Prime Video Ads with other Amazon advertising solutions. This includes campaigns on Amazon like Sponsored Products and Sponsored Brands. But it can also involve publishing your ads on other platforms like imdb.com or Twitch. Try this to amplify your reach and impact:
- Come up with bespoke ads and create separate journeys that ultimately bring viewers to the same outcome.
- Create Prime Video Ads that can also run with Freevee and during live sports events to drive more traffic to your product listings or brand store.
- Create a consistent brand experience across all ad formats as you highlight the same USPs, discounts, and deadlines.
6. Seasonal and Event-Based Campaigns
Make the most of seasonal trends and major shopping events by creating targeted video ads timed for optimum impact. Prime Day, Black Friday, and Cyber Monday are prime opportunities to increase visibility and drive sales. So, to focus on Prime members, try some of these tactics:
- Plan video campaigns around major shopping events to capture high-intent shoppers.
- Offer exclusive promotions or discounts to Prime members during these periods.
- Highlight seasonal products or limited-time offers in your video ads.
Amazon Prime Video Ads could be one of the most effective gimmicks in your seller toolkit. It has the potential to reach a highly engaged and loyal customer base quickly, leaving an indelible mark. So, familiarize yourself with video ads, learn about new advertising tactics on Amazon, and watch this space to boost your visibility, drive traffic, and bolster sales.
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.