For years, Amazon Prime Video has been a haven for ad-free streaming, a refuge from the constant barrage of commercials that plague standard TV. However, Amazon recently announced that, starting in early 2024, ads will be shown on Prime Video, which caused waves in the streaming world.

Amazon plans to roll out this new ad tool slowly. Users in the US, UK, Germany, and Canada will be the first to see these ads. Late this year, Prime Video users in Spain, Mexico, France, and Italy will be able to do the same.

Reason Behind This

Original, high-quality material costs a lot. By adding ads, Amazon hopes to make more money so that it can buy more interesting TV shows and films for Prime users. This might allow the platform to have an even bigger library of material.

Netflix, Disney+, and Hulu are all competing in the streaming wars. Amazon might want to stay competitive in the constantly changing streaming market by adding a cheaper tier with ads to attract a bigger audience. Besides, Amazon is not the first streaming service to show ads. All the platforms mentioned above have ad-supported tiers or plans that offer lower prices or more content in exchange for watching commercials.

Studies indicate that the global ad-supported video-on-demand (AVOD) market is projected to grow at 17.5% per year. Currently, the world market is worth US$38.9 billion, and it’s expected to be worth almost US$87.9 billion by 2024. This suggests a huge demand and potential for this type of service among audiences that are more willing to tolerate ads like Gen Z. 

Moreover, Amazon is very good at handling data. With targeted advertising on Prime Video, advertisers might be able to make the ads more relevant to watchers, which could make commercials less annoying.

Impact on Viewers

An ad-supported plan could make Prime Video more affordable for people who want to watch it but don’t want to spend a lot of money. If ads bring in more money, more money might be put into original material, which could mean more TV shows and films to choose from.

A lot of commercial breaks can be annoying because they break up the flow of a show and test people’s patience. It’s possible that this will make people angry and make watching less fun. People have lower attention spans these days, which makes it hard for commercials to get people’s attention. Repeated or pointless ads could get annoying and take away from the enjoyment of watching material overall.

We still need to determine how often and how long ad breaks will last. Too many or badly timed ads could really ruin the watching experience. Amazon says its targeting is based on data, but it’s unclear how well it will work. Even ads that aren’t relevant could be annoying, and ads that are very specific to you might make you worry about your privacy.

How Will This Help Sellers?

With the chance to make more money from ads, Amazon might put more money into making original, high-quality material. This could bring more people to Prime Video, which means there will be more people interested in watching seller-listed goods featured in TV shows or movies (through product placement or sponsored content).

Amazon’s data-driven advertising could mean more relevant ads appear during Prime Video streams. If these ads show useful products to certain groups of viewers, it could make more people aware of the brand and make them more likely to buy those products, which could be good for Amazon sellers.

Ads are a new way for advertisers to reach people in the Amazon environment. To effectively reach their target audiences, sellers may want to consider adding Prime Video advertising strategies to their total marketing mix. A proper way to do this would be to hire an Amazon PPC service so that they can effectively integrate this into their advertising strategies. 

As the competition for viewers’ attention in Prime Video grows (because of both original material and ads), sellers may need to focus on making their products easier to find. This could mean ensuring product listings have the right keywords, high-quality pictures, and interesting descriptions.

Conclusion

The streaming services business is changing because Amazon decided to add ads to Prime Video. Amazon hasn’t said what the rules are for ads on Prime Video, which means a lot of information is still hidden. But Prime Video ads have a huge amount of promise. They let businesses reach the people they want to reach where they spend most of their time. 

If you want to learn more about Amazon advertising or need help with Amazon PPC services, Services4Amazon is the right place to look. We have years of experience and strategies that have helped our clients scale their businesses quickly. So, please check out our website to know more.