Amazon Prime Video's ad introduction will revolutionise connected TV

Amazon Prime Video’s ad introduction will revolutionise connected TV

Granular targeting, integration with the wider ad ecosystem and advanced measurement capabilities mean Amazon will be a formidable player, says Plug Media’s founder.

Amazon’s strategic decision to launch an ad product for Prime Video — initially in the UK, US, Canada and Germany, with additional countries to follow — not only opens up new revenue streams but also positions Prime Video as a formidable player in the connected TV (CTV) market.

Learning from previous streaming TV ad launches, this will be an opt-out service and light on advertising in relation to content. This will offer an unparalleled opportunity to reach a vast and highly engaged audience. On launch, Amazon is anticipating UK reach to be circa 15m unique users, providing digital and TV agency teams and advertisers with a truly scaled opportunity of logged-in users around world-class content. If those numbers are realised, this should position Prime Video as the largest ad streaming TV platform in the UK.

Advantages in targeting

Buying this through a demand-side platform (DSP) partner will have the distinct advantage of no large minimum spends and deeper granular targeting. Within the Amazon ecosystem, users are not only actively making purchases on the shopping platform but also engaging with various forms of content across Amazon properties, such as Kindle books, Amazon Music, Twitch and IMDb.

From a DSP standpoint, this offers a rich dataset for audience targeting and segmentation. Advertisers will be able to leverage Amazon’s first-party data to identify and reach specific consumer segments based on their shopping habits, content preferences and other behavioural signals.

Broader ecosystem

Moreover, Prime Video’s ad product integrates seamlessly with the broader Amazon advertising ecosystem. This means advertisers can combine display advertising with sponsored product listings, as well as video and audio ads, to create a comprehensive campaign strategy. The ability to manage and optimise activity across various formats via a single interface will enhance efficiency, allow for a more cohesive brand message and drive performance further down the funnel.

The performance metrics available will provide advertisers with granular insights into campaign effectiveness, with the ability to analyse and optimise in real time, ensuring campaigns remain responsive to changing market conditions. Additionally, advanced measurement capabilities including brand uplift, incremental reach and halo studies will be readily available, providing a more holistic view of effectiveness.

By combining its extensive content library with personalised advertising capabilities, the ability to leverage rich first-party data and seamless integration with the wider Amazon ecosystem, Prime Video has positioned itself as a robust contender in the streaming TV marketplace. As the platform continues to evolve, it is likely to set new standards for user experience, content discovery and advertising effectiveness, cementing its place as a leader in the ever-expanding world of digital entertainment.

Chris Cochrane is the founder of Plug Media

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