Amazon US offers low ad prices to get brands on board for Prime Video Ads launch

Prime Video

Prime Video’s ad-tier offering is expected to launch in Australia later in the year.

Amazon US is offering low advertising prices to media buyers in a bid to get advertisers on board ahead of the launch of its Amazon Prime Video ad tier launch on 29 January. 

Amazon Prime is the last of the major streaming players in the US to launch an advertising tier and is selling mid-to-low CPMs in a bid to compete with existing platforms. 

Prime Video is projecting massive reach and offering competitive rates in the $30 range, according to AdWeek. The rates are in contract with Netflix US, which initially sought $65 CPM when it first launched its ad tier.

The competitive rates are attributed to the streaming platform scale, with Amazon projecting more than 100 million subscribers at the US launch, according to reports. Amazon Prime Video users will automatically receive ads when the model launches but can opt for an ad-free service at an extra US$2.99 a month. 

Locally, Amazon remains tight-lipped about the launch of its advertising tier in Australia, telling Mediaweek, “We have nothing to announce yet”.  

Amazon announced the launch of its ad-tier in November last year, with plans to launch in the U.S., U.K., Germany, and Canada in January, with Australia, France, Italy, Spain and Mexico to follow later in the year.

At the time, Amazon said the aim was “to have meaningfully fewer ads than linear TV and other streaming TV providers while simultaneously offering advertisers reach, frequency, and opportunities to tailor messages.”

At the Amazon unBoxed 2023, Jay Marine, vice president of Prime Video and global head of sports, said the launch of the ad-tier offering will make the platform “instantly be one of the largest premium ad-supported services in virtually every country we operate in”. 

“This means we can simultaneously offer advertisers unmatched reach and frequency.”

Marine said in the U.S., Prime Video ads are estimated to reach 115 million viewers on a monthly basis.

Streaming giant Netflix has revealed it will launch sponsorships and a variety of ad formats in the local market this year. 

Australian advertisers will be able to purchase title sponsorships for hit Netflix programs such as The Crown, as well as sponsor live programming events and ‘Moment Sponsorships’ to tap into cultural moments and local holidays.

See also: Netflix Australia set to launch sponsorships and a variety of ad formats in 2024

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