If there was any doubt left, Amazon’s latest pitch to U.K. advertisers clears it up: Video is where the company is steering ad dollars, and that’s not shifting anytime soon.
The message came through loud and clear at its upfront presentation tonight (Oct. 2), where Amazon put Prime Video’s reach front and center.
For the first time, Amazon claimed that advertisers can now reach an audience of over 19 million customers on its ad-supported tier — equivalent to more than a third of U.K. adults.
That makes its audience significantly larger than Netflix’s 2.78 million subscribers on its ad tier in the U.K. and Disney+’s 820,000, according to the latest data from measurement body Barb.
Amazon’s exclusive audience is clearly central to its pitch, signaling a feeling of vindication over how it has built the ads tier of Prime Video over the last nine months.
Unlike Netflix, which asks people to opt into its ad-supported tier, Amazon put everyone in its ad-supported tier by default, forcing customers to opt out if they wanted an ad-free experience.
This effectively turned the ad-supported tier into the baseline Prime Video experience, generating higher revenue per viewer without offering a cheaper “ad” version of the service. And for those who want to avoid ads? They can pay more, boosting Amazon’s average revenue per user from that segment. But the largest pool of Prime Video’s audience is now being monetized at a stronger rate, maximizing returns on the eyeballs the platform has.
And Amazon’s executives didn’t miss the opportunity to reiterate that point: More than half (52%) of Prime Video viewers don’t watch paid linear TV in the U.K. They also spend 36% more on Amazon.co.uk compared to the average customer, and are drawn to a diverse slate of content, including global and local hits, award-winning Amazon Originals and live sports, according to Amazon.
Phil Christer, managing director at Amazon Ads in the U.K., expanded on this point at the event: “By combining award-winning TV series and films, billions of first-party signals, and leading ad tech, we are helping brands deliver relevant ad experiences at an entirely new scale.”
He cited a recent campaign from Hasbro as a prime example.
The toy manufacturer wanted to reach shoppers at different stages of the purchase journey, so its marketers used Prime Video ads to build brand awareness, boost sales and grow audience reach for “Peppa Pig” toys. Using Amazon’s data, Hasbro ran a six-week campaign that combined Prime Video ads with lower-funnel Sponsored Brands placements. The results? A 21% year-on-year increase in branded searches and a 17% rise in “Peppa Pig” sales — 8% of which were from new-to-brand customers.
Christer also highlighted another win with Nivea. The skincare brand ran a Prime Video campaign and used an independent vendor to measure its impact. The results showed that Prime Video ads generated over 50% more attention compared to linear and on-demand TV benchmarks.
Whether it’s boosting awareness for toys or driving engagement for skincare, Amazon’s message is clear: Its ad-powered ecosystem can deliver results that traditional TV simply can’t match.
Still, a few success stories from companies like Hasbro won’t be enough to push Amazon’s ads business to the next level.
To attract more advertisers, Amazon is rolling out new ad formats next year: interactive video ads that let customers add products directly to their cart with a remote click; interactive pause ads that drive brand engagement whenever viewers take a break; and shoppable carousel ads that allow customers to browse and buy multiple products right from ad breaks on Prime Video.
Content, however, is the real backbone of Amazon’s ad growth strategy. it’s what brings in subscribers and holds the attention that advertisers pay top dollar for.
That’s why Prime Video and Amazon MGM Studios execs pulled out all the stops at the upfront event, parading a lineup of upcoming TV series and films and treating attendees to an exclusive preview of the final episode of “The Lord of the Rings: The Rings of Power.” The second season has already pulled in over 50 million viewers, with the U.K. ranking as one of the top markets fueling that global audience.
And Amazon didn’t stop there.
Actress Priyanka Chopra-Jonas introduced the second season of “Citadel” before being joined by actor Idris Elba to tease their upcoming action-comedy “Heads of State.” Actors Orlando Bloom, Nick Mohammed and Bryce Dallas Howard jumped in to talk about their new British action-comedy “Deep Cover.” And even director Guy Ritchie made an appearance to chat about “Young Sherlock,” an origin story of the iconic detective currently being shot in the U.K.
The whole affair felt like Amazon’s not-so-subtle clap back at critics who’ve accused the company of cutting corners on quality — especially when compared to Apple’s prestige TV or Netflix’s culture-defining hits. But Amazon went a step further, flexing its reach in sports, music and gaming to show it’s aiming for more than just the traditional streaming crown.
Alex Green, managing director of Prime Video’s international sports division, highlighted Amazon’s exclusive rights to broadcast high-profile UEFA Champions League matches in the U.K. and Ireland. On the music front, Amazon pointed to performances by stars like Kendrick Lamar, The 1975, Taylor Swift and Megan Thee Stallion, along with its own livestreaming series, “City Sessions,” featuring intimate shows from emerging artists.
While Amazon focused on its ad opportunities against Amazon’s premium content using its formats, the company also noted that marketers don’t need to sell on Amazon to leverage its ad tech and reach. Wherever a brand’s products are sold, Amazon’s ads can help drive results.
This is the narrative driving Amazon’s ad tech pitch this year, especially with its newly revamped demand-side platform. The platform’s upgrade aims to bridge the gap between the performance of Amazon’s data-driven advertising inside its walled garden and what it can do beyond it.
“Our newly simplified Amazon DSP experiences help advertisers create and manage campaigns more quickly, optimize for frequency more effectively, and garner smarter insights,” said Piers Heaton-Armstrong, vp of advertising in Europe. “The Amazon DSP is your gateway to combining our signals with yours, streamlining your media buys, and reaching customers where they spend their time.”
Heaton-Armstrong pointed to a recent campaign by SharkNinja, the premium kitchen appliances brand, to illustrate the platform’s capabilities. SharkNinja built a full-funnel media strategy that included Prime Video ads for awareness, DSP display and online video for engagement, and Sponsored Ads for mid-to-lower-funnel conversions. The entire strategy was integrated through the Amazon Marketing Cloud, Amazon’s data clean room for measurement and remarketing.
The results were compelling: Customers exposed to the ads on Prime Video were 20% more likely to add SharkNinja items to their carts and 20% more likely to convert within 10 days. Customers who saw all elements of the campaign were 40% more likely to make a purchase.
“With Amazon DSP, our clean rooms and other leading ad tech, we can help all advertisers connect awareness and brand building objectives directly to sales outcomes and category growth. Full-funnel advertising, at scale, for everyone,” added Heaton-Armstrong.
The pitch comes weeks after Amazon closed the U.S. version of its upfront, during which Amazon brought in more than $1.8 billion in ad spending commitments for its video-streaming services including Prime Video, according to The Information.
