Amazon Ads: Streaming TV ads connect content with commerce

Category: Amazon News
Amazon Ads: Prime Video Streaming TV ads connect content with commerce Prime Video Ads

New research from Amazon Ads reports that almost three in five (59%) UK consumers are streaming TV for more than one hour each day, rising to more than nine in 10 consumers (93%) aged 18 to 34 years. With so much time being spent watching streaming TV, nearly half (49%) of UK adults sampled said they have discovered a new brand after seeing ads while streaming TV during the last year, a figure which rises to 74% among adult Gen-Z and millennial audiences (those aged 18-34 years old).

In encouraging news for brands, almost nine in 10 (89%) respondents said they are receptive to streaming TV ads that are interesting, relevant or help to keep subscription costs down. Conversely, the same sample said that they are likely to skip ads that are that are too long (38%), not interesting (40%) or not relevant to them (36%) – placing the emphasis on advertisers to ensure they’re reaching the right audiences, with relevant content.

The thing that worries me about this research, is that currently the only ads that Prime Video carries is ads when browsing for more video content. Does this research herald the possibility of ad supported Prime Video, for which my greatest delight is that films are currently never interrupted by ads? Or could it be in indication that Prime Video might evolve into a two tier system, where those that are happy to have content interrupted by ads pay one price, and those that detest ads pay a premium?

As a Prime benefit, adding ads to Prime Video would effectively downgrade the service, and we’ve already seen Amazon downgrade Prime Services with the addition of a £1.99 fee for same-day or next day by 1pm deliveries with a value of less than £20. We may be entering an age where Amazon are looking to squeeze more revenue out of Prime members on multiple fronts as a way to avoid significantly hiking the membership fee.

Amazon tell us that in the U.S. alone, Amazon’s ad-supported streaming TV solutions today reach an average monthly audience of more than 155 million viewers, and 10.9% of their audience cannot be found on linear TV. Amazon’s comprehensive range of streaming TV offerings including NFL Thursday Night Football, their Freevee ad-supported streaming service, Twitch, Fire TV Channels, and premium third-party publishers helps customers discover great products and brands through relevant advertising, and provide brands with the ability to uniquely engage with the right audiences, measure outcomes, and optimize their spend.

Specifically on the potential of an ad supported service in the UK they said:

We don’t comment on rumours or speculation

– Phil Christer, Managing Director, Amazon Ads UK

By embedding advertising within streaming TV content, such as through brand funded programming, brands can connect with audiences in a natural and engaging way. In fact, over a quarter of streamers (28%) said they would buy a product directly after seeing it within content they are already watching – whether that’s through product placement or a brand funded programme. Among 18–34-year-olds this increases to 44%.

Engaging advertising starts with great content. Customers want to be served content they love, while doing the things they love – like watching streaming TV, listening to music, or shopping. If brands want to engage new customers while they stream they must prioritise finding new, innovative ways to deliver streaming TV ads and connect with audiences in a way that enhances the overall viewing experience.

– Phil Christer, Managing Director, Amazon Ads UK

The research also found that streamers spend up to three minutes searching for information about a product or brand after watching an ad, placing the emphasis on advertisers to make the transition from content to commerce as seamless as possible.

For brands looking to convert their streaming TV ads in to sales, the effectiveness of different types of advertising varies depending on the age of the audience the advertising reaches. For example, more than a third (34%) of adult Gen-Z and millennials said they were likely to buy a product they liked after seeing it included within an interactive streaming TV ad, compared to just 10% of those aged 55+. In contrast, almost one in five (19%) of those aged 55+ said they would be likely to make a purchase if they saw a product they liked in a standard ad that automatically plays during streaming TV content.

Creating a bridge between content and commerce means better experiences for customers, and better outcomes for brands. For advertisers who understand the audiences they’re trying to reach, streaming TV is an exciting route to delivering useful and relevant ads in a place where customers are already spending their time.

– Phil Christer, Managing Director, Amazon Ads UK

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