- IPG Mediabrands has signed on as the primary major agency holding company to work with Amazon on the upcoming launch of the ad-supported version of its Prime Video streaming service launching in 2024, the e-commerce giant said in an organization blog.
- The three-year deal will provide IPG with first-look opportunities at latest ad formats and content sponsorships. The deal also includes access to Amazon’s first-party shopping and entertainment insights to support relevant ad experiences.
- As ad-supported streaming offerings proliferate, Amazon’s is predicted to succeed in an estimated 115 million monthly viewers within the U.S. alone, in keeping with the corporate. Programming can have “meaningfully fewer ads” than traditional TV and other services, it said.
Amazon’s fledgling ad-supported offering gains a big stable of potential advertisers via the three-year deal, giving it a possibility to come back out of the gate strong when it launches in 2024 with plans to roll out to nine international markets. While most streaming services have already got their ad-supported services up and running, Amazon is promising greater reach and frequency through its offering than its competitors and might want to prove its point.
“When we start introducing limited ads into Prime Video shows and flicks, Prime Video shall be one in every of the most important premium ad-supported services in most countries where we operate,” said Alan Moss, vp of world sales for Amazon Ads, in a post announcing the partnership. “This means we are able to concurrently offer brands unmatched reach and frequency to assist them achieve their business goals.”
Amazon plans to launch its ad-supported streaming option in early 2024, starting with the United States, the United Kingdom, Germany and Canada. It will roll out to 5 other countries — France, Italy, Spain, Mexico and Australia — throughout 2024. With its large general audience of each streaming viewers and consumers, Amazon’s strength is its first-party consumer data and its ability to offer full-funnel experiences. In a recent report, Magna, which is a unit of IPG Mediabrands, called Amazon’s offering “a game-changer” for advertising-supported video on demand (AVOD).
“Amazon’s latest offering brings a first-to-market opportunity for our clients to succeed in consumers on the category level in a comprehensive, scalable way — from culture and content to commerce and shoppable experiences,” said Eileen Kiernan, global CEO of IPG Mediabrands, in a press release.
Even so, Amazon’s Prime Video is the last major streaming service to launch an ad-supported tier, and it can have numerous ground to make up. When Disney+ launched its ad-supported tier last December, Disney had enlisted greater than 100 advertisers and made agreements with all the main holding corporations to advertise on its platform. The streamer recently added various latest features to its ad-supported tier, including advanced audience targeting, additional programmatic marketplaces, expanded ad formats and enriched measurement.
Netflix, meanwhile, launched its Netflix Basic with Ads subscription offering last November with partnerships with DoubleVerify, Integral Ad Science and Nielsen to assist brands track campaign success. Netflix executives have said that the per-member economics of its ad-supported tier are stronger than the ad-free plan within the U.S. but offered few details about those metrics. The offering reached 1 million monthly subscribers last March.
At the identical time, consumers are demonstrating some fatigue with ad-supported content, which accounted for 53.7% of the time consumers spent watching content, down from 58.5% in 2017, PQ Media’s Global Consumer Media Usage Forecast found.
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