Earlier this year, Amazon’s Prime Video shocked the advertising world.
The streaming giant has flipped a metaphorical switch and turned on ads for all Prime Video users. Prime members can also pay a few extra dollars each month to avoid ads, but apparently very few people did so.
According to The Information, the switch instantly made Prime the world’s largest ad-supported subscription streaming service, and it has taken full advantage of the move, securing more than $1.8 billion in advances this year.
With a number of strategic moves seemingly converging, Amazon is now in the best position to continue its growth into 2025 (just kidding).
First, Prime Video is expected to add more inventory to the service, although the exact nature of what that will look like is still unclear. That could mean more advertising inventory, and with forms like pauses and various forms of sponsorship proliferating, it could mean more types of marketing opportunities.
Amazon’s advertising executive Kelly Day told the FT that Prime Video’s ad load will “increase slightly” in 2025, but that the company is expected to keep its overall ad load fairly light. spoke.
An Amazon spokesperson told The Hollywood Reporter: “We have not changed our plans to significantly reduce advertising than terrestrial TV and other streaming TV providers and evaluate our advertising volumes to ensure we deliver a superior customer experience. “I haven’t done it yet,” he said.
Either way, any move by Amazon to expand its advertising business is sure to cause heartburn for its competitors, as shows like Fallout and sports like the NFL draw viewers.
When the company introduced ads to Prime Video earlier this year, the streaming video ad market was flooded with inventory, and two of the top ad salespeople at competing streaming services said they were unable to meet their internal targets despite the increase in streaming ad revenue. He said he felt pain because he was unable to achieve his goals. Healthy compared to last year.
Similar problems may occur in 2025.
This is especially true given Prime Video’s strength not only in reach but also in live sports coverage. Thursday Night Football averaged nearly 15 million viewers per game, 25% more than last year, according to Nielsen.
The numbers put to rest any doubts about Prime Video’s ability to attract large audiences. According to Amazon, more than 50 new brands have signed on to sponsor TNF this season, with Verizon, Subway, State Farm, Allstate and J.C. Penney returning as sponsors of pre- and post-game coverage, halftime and other programming. He said he came.
The company also introduced shoppable, interactive ads into its games, expanding its strategic priorities and leveraging Amazon’s retail strengths.
“Live sports content continues to scale, and Amazon is creating meaningful opportunities for brands by combining customer reach with our first-party insights and innovative ad technology.” said Daniel Carney, Head of Live Sports and Video Sales. TNF kickoff. “We offer complete funnel functionality that works for all advertisers, not just brands selling on Amazon.”
And next year, Prime Video will add the NBA, dramatically expanding its sports content and providing a host of advertising opportunities for sponsors seeking a bigger slice of the sports pie.
Indeed, advertising is big business for Amazon overall. In the second quarter, it reported ad revenue of $12.7 billion, up 20% year over year.
Most of that will still come from the retail business, but Prime Video will be the driver of growth next year as sports, new entertainment programming, new ad formats, and perhaps an expansion in ad load will all act as catalysts. is expected.
