Amazon Prime’s Ad Shift

31st January 2024
Posted in Projects
31st January 2024 Toby Farrington

Amazon Prime’s Ad Shift

We have all heard the news of Amazon Prime’s decision to launch ads across their full audience base, a decision that is clearly a lesson learnt from other SVOD players entering the AVOD space and failing to achieve the scale Agencies or Brand’s would expect. In an ideal world, this could be a decision that elevates the consumer experience, leads to an increase in quality content on the platform and enables Advertisers to achieve scale, or utilise Amazon’s rich data capabilities to reach hyper-relevant targeted audience, in a high-quality content setting.

 

The digital landscape is rapidly evolving, and 5 years ago, we were all saying the SVOD market would have to embrace us as Advertisers eventually, and with that time arriving I think embracing them back is key; but holding them accountable for how and what they sell is hugely important. If Amazon are saying the introduction of Ads is to increase the quality and diversity of content, then we as Advertisers need to make sure the ball doesn’t get dropped. High quality content coupled with relevant audiences being targeted is a huge green flag, as well as diverse content creating opportunities for all audiences to be reached in relevant programming. Context Matters, and so does inclusivity. If this is being promised, it needs to be delivered.

 

From a consumer perspective, I don’t think the fee of a couple dollars a month is what will cause viewers to opt out of ads, it will be based on what Amazon delivers as a viewing experience. If the quality of content isn’t there, and the ads are intrusive and annoying, people will start switching off, or in this case, opting out. Meaning the scale isn’t there and such rendering the treasure chest of data and targeting capabilities, redundant.

 

In conclusion, I think Amazon have created a huge opportunity to not just grow their own advertising offering, but to grow the Video market as a whole. As Advertisers we need to be positive in our approach, but not look at this through rose tinted glasses and make sure what is being offered, lives up to the hype. And if it does, touch wood, I think we might be seeing a new era of high-quality content coupled with a top-quality use of data and targeting.

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