Prime Video is introducing large-scale advertising to its US users starting January 29, generating anticipation across the streaming industry. However, this launch coincides with a challenging time for advertisers, many of whom have already finalized their investment commitments for the 2023-2024 TV season. This situation is forcing the platform to offer attractive terms to secure advertising budgets. Industry professionals familiar with the negotiations told AdAge that the platform might not attract many major brands in the initial months.
Prime Video will begin displaying ads in the US from January 29 and in the UK a week later. The involvement of IPG Mediabrands, an agency Amazon partnered with in December to give its clients priority access to sponsorship opportunities or formats on Prime Video, will be crucial. However, it’s unclear how many have expressed interest in reallocating budgeted funds or increasing their investment to include this service.
Amazon’s platform faces the same challenge Netflix encountered in 2022: launching advertising capabilities months after TV operators have made their pitches at upfront events, where buyers commit the bulk of their ad spending in the US well in advance. These upfront presentations, typically held in New York during May, leave limited funds available for Prime Video at the beginning of 2024. Despite this, Amazon’s competitive pricing structure across three different segments, unlike Netflix’s initially high CPMs, includes bonuses to entice buyers.
AdAge reports that buyers believe the platform’s late entry into the major TV ad booking windows will negatively impact it for several months. Planners reminded that, post-pandemic, advertisers are seeking more flexibility and lower commitment, yet Prime Video’s purchasing conditions are seen as too rigid by some, leading them to plan less or not at all.