Amazon to show ads when Prime Video users pause streaming
What's the story
Amazon is preparing to overhaul its advertising strategy with the introduction of three ad formats on its Prime Video platform.
The e-commerce giant has announced that these new ad formats, namely shoppable carousel ads, interactive pause ads, and interactive brand trivia ads, will be launched later this year.
These innovative advertisements will be featured during Prime Video TV shows, movies, and live sports.
Shoppable ads
Exploring Amazon's innovative ad formats
The shoppable carousel ad format provides viewers with a scrolling selection of products.
This ad automatically pauses when users interact with it, allowing them to browse and add products to their Amazon cart. The ad resumes playing once the user stops interacting.
Another new feature is the interactive pause ads that appear when viewers pause the Prime Video content they are streaming, showcasing a translucent ad with brand messaging and "Add to Cart" and "Learn More" buttons.
Trivia ads
Interactive brand trivia ads
The third innovative ad format Amazon is introducing is interactive brand trivia ads.
These ads allow companies to share facts about their brand with viewers and offer them the opportunity to add products to their cart, request more information via email, and claim rewards.
The new ad offering comes just days before Amazon's significant Upfront conference on May 14, where it will showcase the benefits of advertising products and services on Amazon.
Subscription details
Ad-free option and audience reach
Amazon began incorporating ads into Prime Video in January, following other major streaming platforms like Netflix and Disney+.
Subscribers have the option to choose an ad-free experience for an additional $3/month, on top of the annual $139 membership fee for Prime.
According to Amazon, its ads reach an average audience of 200 million viewers a month.
Ad strategy
Amazon's vision for streaming advertising
Alan Moss, Amazon's VP of Global Ad Sales, stated that the goal is to "transform streaming advertising through our differentiated combination of reach, first-party signals, and ad tech."
This suggests that Amazon may use its first-party data for targeted advertising on Prime Video.
The introduction of these ads aligns with Amazon reporting a 24% year-over-year increase in its ad sales in the first quarter of 2024, totaling $11 billion.