If there was any doubt left, Amazon’s latest pitch to UK advertisers clears it up: Video is where the company commands ad dollars, and that’s not going to change anytime soon.
The message came through loud and clear at the upfront presentation tonight (October 2), where Amazon put Prime Video’s reach front and center.
For the first time, Amazon claimed that advertisers can now reach an audience of over 19 million customers at its ad-supported tier – equivalent to more than a third of UK adults.
That makes the audience significantly larger than Netflix’s 2.78 million ad-level subscribers in the UK and Disney+’s 820,000, according to the latest data from metrics firm Barb.
Amazon’s exclusive audience is clearly central to its pitch, signaling a sense of vindication over how it’s built the ad tier for Prime Video over the past nine months.
Unlike Netflix, which asks people to choose their ad-supported tier, Amazon put everyone in its ad-supported tier by default, forcing customers to opt out if they wanted an ad-free experience.
This effectively turned the ad-supported tier into the original Prime Video experience, generating higher revenue per viewer without offering a cheaper “ad” version of the service. And for those who want to avoid advertising? They can pay more, which increases Amazon’s average revenue per user from that segment. But the largest pool of Prime Video’s audience is now monetizing at a higher rate, maximizing returns on the eyeballs the platform has.
And Amazon executives didn’t miss the opportunity to reiterate that point: More than half (52%) of Prime Video viewers don’t watch paid linear TV in the UK. They also spend 36% more on Amazon.co.uk compared to the average customer, and are drawn to a variety of content, including global and local hits, award-winning Amazon Originals and live sports, according to Amazon.
Phil Christer, CEO of Amazon Ads UK, expanded on this point at the event: “By combining award-winning TV series and films, billions of first-party signals and leading ad technology, we’re helping brands deliver relevant ad experiences on a whole new scale.”
He cited a recent Hasbro campaign as a prime example.
The toy maker wanted to reach customers at different stages of the buying journey, so its marketers used Prime Video ads to build brand awareness, increase sales and increase audience reach for “Peppa Pig” toys. Using Amazon’s data, Hasbro ran a six-week campaign that combined Prime Video ads with sponsored brand placements in lower channels. The results? A 21% year-on-year increase in brand searches and a 17% increase in ‘Peppa Pig’ sales – of which 8% came from new to brand customers.
Christer also highlighted another win with Nivea. The skincare brand ran a Prime Video campaign and used an independent vendor to measure its impact. Results showed that Prime Video ads generated over 50% more attention compared to linear and on-demand TV benchmarks.
Whether it’s raising awareness for toys or driving engagement for skin care, Amazon’s message is clear: Its ad-driven ecosystem can deliver results that traditional TV simply can’t match.
Still, a few success stories from companies like Hasbro won’t be enough to propel Amazon’s ad business to the next level.
To attract more advertisers, Amazon is rolling out new ad formats next year: interactive video ads that let customers add products directly to their cart with a remote click; interactive pause ads that increase brand engagement when viewers take a break; and shoppable carousel ads that allow customers to browse and purchase multiple products directly from ad breaks on Prime Video.
However, content is the real backbone of Amazon’s ad growth strategy. it’s what brings in subscribers and keeps the attention advertisers pay top dollar for.
That’s why the heads of Prime Video and Amazon MGM Studios pulled out all the stops at the first event, pairing with a range of upcoming TV shows and movies and giving attendees an exclusive preview of the final episode of “The Lord of the Rings: The Rings of Driva .” The second season has already pulled in over 50 million viewers, with the UK ranking as one of the top markets fueling the global audience.
And Amazon didn’t stop there.
Actress Priyanka Chopra-Jonas introduced the second season of ‘Citadel’ before being joined by actor Idris Elba to tease their upcoming action comedy ‘Heads of State’. Actors Orlando Bloom, Nick Mohammed and Bryce Dallas Howard stopped by to talk about their new British action comedy ‘Deep Cover’. And even director Guy Ritchie showed up to talk about “Young Sherlock,” an origin story about the iconic detective currently shooting in the UK
The whole deal felt like Amazon’s not-so-subtle slap back at critics who have accused the company of cutting back on quality — especially compared to Apple’s prestige TVs or Netflix’s culture-defining hits. But Amazon went one step further, expanding its reach into sports, music and games to show it’s aiming for more than just the traditional streaming crown.
Alex Green, CEO of Prime Video’s international sports division, highlighted Amazon’s exclusive rights to broadcast high-profile UEFA Champions League matches in the UK and Ireland. On the music front, Amazon pointed to performances by stars like Kendrick Lamar, The 1975, Taylor Swift and Megan Thee Stallion, along with its own live streaming series, “City Sessions,” featuring intimate shows from emerging artists.
While Amazon focused its advertising opportunities against Amazon’s premium content using its format, the company also noted that marketers don’t need to sell on Amazon to leverage its ad technology and reach. Wherever a brand’s products are sold, Amazon ads can help drive results.
This is the story driving Amazon’s ad tech this year, especially with its recently revamped demand-side platform. The platform’s upgrade aims to bridge the gap between the performance of Amazon’s data-driven advertising in its walled garden and what it can do beyond it.
“Our newly simplified Amazon DSP experiences help advertisers create and manage campaigns faster, optimize for frequency more efficiently and gain smarter insights,” said Piers Heaton-Armstrong, Head of Advertising Europe. “Amazon DSP is your gateway to combining our signals with yours, streamlining your media buys and reaching customers where they spend their time.”
Heaton-Armstrong pointed to a recent campaign by SharkNinja, the premium kitchen appliance brand, to illustrate the platform’s capabilities. SharkNinja built a full-channel media strategy that included Prime Video ads for awareness, DSP display and online video for engagement, and sponsored ads for mid- to lower-funnel conversions. The entire strategy was integrated through the Amazon Marketing Cloud, Amazon’s data room for measurement and remarketing.
The results were compelling: Customers exposed to the ads on Prime Video were 20% more likely to add SharkNinja items to their carts and 20% more likely to convert within 10 days. Customers who saw all parts of the campaign were 40% more likely to make a purchase.
“With Amazon DSP, our cleanrooms and other leading ad technologies, we can help all advertisers connect awareness and branding goals directly to sales results and category growth. Advertising across the channel, at scale, for everyone,” added Heaton-Armstrong.
The pitch comes weeks after Amazon shut down the U.S. version of its upfront, during which Amazon took in more than $1.8 billion in ad spending for its video streaming services including Prime Video, according to The Information.
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