Master Amazon Prime Video Ads: A Complete Guide in 2024

Master Amazon Prime Video Ads: A Complete Guide in 2024

Video ads are no longer just an option; they are a necessity. According to a 2024 report by Statista, global video ad spending is expected to reach $90 billion, a significant increase from previous years. This surge is fueled by growing consumer preference for video content, with 91% of people saying they want to see more video content from brands they follow (HubSpot, 2023).

Amazon Prime Video Ads is positioned perfectly within this trend. The platform leverages Amazon’s expansive ecosystem, which includes over 200 million Prime members worldwide and millions more who engage with its streaming services. This gives advertisers access to a highly engaged audience actively consuming content.

Table of Contents
  • What Are Amazon Prime Video Ads?
  • The Types of Ads Available on Amazon Prime Video
  • Where Amazon Prime Video Ads Show?
  • Amazon Prime Video Ads vs. Traditional Video Ads
  • Purchasing Methods for Prime Video Ads
  • How to Get Started with Prime Video Ads?
  • Who Should Use Prime Video Ads?
  • FAQ

What Are Amazon Prime Video Ads?

Amazon Prime Video Ads are a form of digital advertising that appears on Amazon's streaming platform, Prime Video. These ads are designed to reach Prime Video viewers with engaging video content, helping advertisers promote their products, services, or brand messages to a highly targeted audience. The ads can be shown in different formats and at various points during a user’s viewing experience, such as before (pre-roll), during (mid-roll), or after (post-roll) a piece of content.

The Types of Ads Available on Amazon Prime Video

Amazon Prime Video offers a range of ad formats to help brands connect with viewers and achieve their marketing goals. With options tailored to different objectives and viewing habits, these ads are designed to engage audiences effectively.

Excitingly, the reach of Prime Video Ads is set to grow even further. Starting in 2025, Amazon plans to roll out partially ad-supported Prime Video in countries like Brazil, India, Japan, the Netherlands, and New Zealand. This expansion means brands will have access to millions of new viewers across these dynamic international markets.

One of the standout features of Prime Video Ads is the precise targeting they offer. Amazon combines data from its marketplace, Twitch, and Prime Video to ensure your ads reach the right audience—whether by demographics, interests, or even shopping behaviors. This helps ensure your message resonates with viewers who are most likely to engage.

Shoppable TV ads, in particular, highlight the power of Prime Video's integration with Amazon's e-commerce ecosystem. They allow viewers to make purchases directly through their remote control or mobile device while watching. This seamless shopping experience makes it easy for viewers to take action immediately, giving advertisers a direct path from awareness to sales.

With a variety of ad formats and the strength of Amazon's targeting and e-commerce capabilities, Amazon Prime Video Ads are a powerful way to connect with viewers, drive engagement, and deliver measurable results for your campaigns.

Where Amazon Prime Video Ads Show?

Prime Video offers subscribers access to a wide array of movies, TV shows, and original content, attracting millions of engaged viewers globally. This platform provides advertisers with opportunities to showcase their messages in high-quality, non-disruptive formats tailored to premium content consumption.

Amazon Prime Video ads are primarily displayed within the Prime Video streaming service, reaching viewers across multiple devices. Approximately 70% of Prime Video consumption occurs on connected TVs, making this a prime location for advertisers to reach their target audience. These ads appear before, during, and after content, with Amazon limiting ad frequency to around two to three minutes per hour to maintain a premium viewing experience.

The Feature Rotator, a carousel-like ad placement, appears above the fold on the Prime Video app interface, offering high visibility to users browsing content. This prime positioning ensures that ads are seen by viewers as soon as they open the app.

Amazon is also expanding its reach by introducing ads on original and library series and film titles in various international markets. In addition to the initial launch in countries like the U.S., Canada, and several European nations, Amazon plans to expand Prime Video ad support to Brazil, India, Japan, the Netherlands, and New Zealand starting in 2025. This expansion will significantly increase the potential audience for advertisers.

For sports enthusiasts, Amazon Prime Video ads are shown during premium sports events such as Thursday Night Football. With Amazon securing an 11-year deal to stream live NBA games starting in 2025, advertisers will have even more opportunities to reach engaged sports viewers.

Amazon Prime video vs. Traditional video advertising

Amazon Prime Video Ads offer several advantages over traditional video ads, making them an attractive option for advertisers looking to maximize their reach and impact. Here's a comparison of key features:

Amazon Prime Video Ads leverage the platform's vast user data to offer unparalleled targeting precision, allowing advertisers to reach specific audience segments based on shopping behaviors, interests, and demographics. This level of targeting is rarely achievable with traditional video ads, which often rely on broader demographic information.

One of the most significant differences is the ad load. Prime Video maintains a lighter ad load of just 2-3.5 minutes per hour, compared to the 10-20 minutes typically found on linear TV. This reduced ad frequency leads to higher viewer engagement and less ad fatigue, potentially increasing the effectiveness of each ad impression.

Moreover, Amazon Prime Video Ads offer advanced measurement capabilities through the Amazon Marketing Cloud, allowing advertisers to track performance across the entire customer journey. This level of insight is generally not available with traditional video ads, which often rely on less precise third-party measurement tools.

The integration of shoppable features in Prime Video Ads also sets them apart from traditional video advertising. Viewers can make purchases directly through their remote control or mobile device while watching content, creating a seamless path from ad exposure to conversion. This direct connection between advertising and purchasing is a unique advantage that traditional video ads cannot match.

Purchasing Methods for Prime Video Ads

Amazon Prime Video Ads offer several purchasing methods to accommodate different advertiser needs and campaign objectives. As Amazon continues to expand its Prime Video ad offerings to new markets like Brazil, India, and Japan in 2025, advertisers can expect more opportunities to reach global audiences through these various purchasing methods. So far, the primary ways to purchase Prime Video ads are:

Managed Service

Managed service is perfect for larger advertisers or those new to the platform. Amazon’s dedicated team takes care of everything—from campaign strategy to execution. Advertisers collaborate directly with Amazon representatives to set up and optimize their campaigns.

Self-Service

For more experienced advertisers, Amazon’s Demand-Side Platform (DSP) offers a self-service option. This approach provides greater control and flexibility, but it requires a solid understanding of the platform to make the most of its features.

Programmatic Guaranteed Deals

Advertisers can lock in guaranteed ad inventory at a fixed CPM (cost per thousand impressions) rate. This method ensures a specific number of impressions for a set price.

Private Marketplace (PMP) Deals

PMP deals are exclusive, invitation-only auctions where select advertisers can bid on premium inventory. These deals often offer more exclusive placements and access to high-value audience segments.

Real-Time Bidding (RTB)

Through Amazon DSP, advertisers can join real-time auctions for ad inventory. This dynamic approach allows for more flexible pricing and highly targeted campaigns based on real-time data.

It's important to note that Prime Video ads are priced at a premium, with CPM rates ranging from £22 to £54, reflecting the high-quality audience and engagement levels. The minimum spend for managed service campaigns is typically higher than for self-service options, making the latter more accessible for smaller advertisers or those testing the platform.

How to Get Started with Prime Video Ads?

To access and purchase Amazon Prime Video ads, you'll need to use Amazon's Demand-Side Platform (DSP). Here's a step-by-step guide on how to access and buy Prime Video ads:

Register for Amazon DSP

Sign up to access the platform. Managed-service advertisers can fill out the registration form on Amazon’s website, while self-service advertisers can register directly on the DSP platform.

Access Prime Video Inventory

Log in to Amazon DSP, go to the Inventory Hub, and search for "Prime Video" under the discover section to find available ad deals.

Choose Your Ad Format

Select ad formats like Feature Rotator, Sponsored Tiles, or Sponsored Channels. Each format offers unique placement options and levels of viewer engagement within the Prime Video interface.

Set Up a Prime Video Order

Create an order in the DSP and set "Awareness" as the campaign goal. Define key metrics like "Video Completion Rate" or "Reach" to track performance.

Configure a Line Item

Set up a line item with "Video" as the line type and assign the relevant product category. Use inventory targeting to locate and add the Prime Video deal of your choice.

Define Your Audience

Use Amazon’s first-party data to reach specific demographics, interests, or shopping behaviors, ensuring your ads resonate with the right audience.

Budget and Bidding

Input the fixed CPM rate (cost per thousand impressions). Prime Video ads typically range from £22 to £54 per 1,000 impressions, reflecting their premium placement.

Prepare Your Ad Content

Create non-skippable video ads with sound, available in 15, 20, or 30-second durations. Ensure they’re designed for full-screen display.

Launch Your Campaign

Once all settings are finalized, activate your campaign and start reaching audiences on Prime Video.

For advertisers new to Amazon DSP or those without dedicated in-house resources, partnering with a certified Amazon Ads Advanced Partner like m19 can make the process easier. These partners provide support with campaign setup, optimization, and strategy to help you achieve your goals.

Who Should Use Amazon Prime Video Ads?

Companies with substantial advertising budgets can fully leverage Prime Video Ads' extensive reach and sophisticated targeting options. These advertisers can afford the higher CPM rates, which range from £22 to £54 per 1,000 impressions.

For managed-service campaigns, Amazon typically requires a minimum monthly spend of $35,000, making this option more suitable for larger advertisers or those with substantial marketing budgets.

FAQ

How much do Prime Video ads cost?

Prime Video ads are priced at a premium, with CPM rates typically ranging from £22 to £54 per 1,000 impressions. The exact cost can vary based on targeting options and ad format.

What is the minimum budget required for Prime Video ads?

For managed-service campaigns, Amazon typically requires a minimum monthly spend of $35,000. Self-service options through Amazon DSP may offer more flexibility for advertisers with smaller budgets.

Where do Prime Video ads appear?

Ads can appear on connected TVs, mobile devices, desktops, and gaming consoles. They are shown before, during, or after content, with approximately 70% of Prime Video consumption occurring on connected TVs.

How long are Prime Video ads?

Advertisers can choose from 15, 20, or 30-second durations for their video content.

How can users stop ads on amazon prime video?

Users cannot skip ads on Amazon Prime Video. The ads are non-skippable, especially for the ad-supported content. However, if users subscribe to an ad-free version of Prime Video, they won’t encounter ads.

Are Prime Video ads available internationally?

Currently, Prime Video ads are available in select countries including the US, UK, Canada, Germany, Austria, France, Italy, Spain, and Mexico. Amazon plans to expand to more markets, including Brazil, India, and Japan, in 2025.

How do I measure the performance of my Prime Video ad campaigns?

Advertisers can access detailed performance metrics through Amazon Marketing Cloud, enabling data-driven optimization of their campaigns.

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Xuan Xie
November 21, 2024
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