As the landscape of television advertising undergoes a seismic shift, fueled by economic uncertainties and the rise of streaming platforms, industry giants like Amazon are pushing boundaries to redefine the market. This year’s upfront negotiations bring to light a critical evaluation of advertising strategies, with a keen eye on the impacts of tariffs and shifting consumer sentiments.
Decline in Linear TV Upfront Spending
According to eMarketer, linear TV upfront spending is projected to decline by 9.1% compared to last year. This drop is primarily driven by economic concerns and the increasing popularity of streaming platforms. However, this doesn’t mean that advertising scenarios are taking a backseat.
Amazon’s Growing Ad Revenues
Amazon stands out as a notable player, with its ad revenues surging by 18% year-on-year in the first quarter of 2025, reaching a staggering $13.9 billion. A key component of this success is their investment in Connected TV (CTV), which has become an integral part of their business strategy.
Expanding Live Sports Coverage
In a strategic move, Amazon Prime Video secured a lucrative deal for NBA streaming rights last year. This addition extends Amazon’s live sports coverage portfolio, which already includes the NFL, MLB, Premier League soccer, and NASCAR. Danielle Carney, head of live sports and video sales at Amazon, emphasizes that this expansion enables advertisers to connect with streaming sports audiences throughout the year.
Enhancing Viewer Experience and Ad Opportunities
In recent months, Amazon has embarked on a showbiz talent acquisition spree, recruiting presenters and commentators while constructing a new California studio dedicated to NBA programming. This effort aims not only to enhance viewer experiences but also to increase advertising real estate through in-studio and in-show sponsorship opportunities.
Flexibility in Advertising Strategies
In response to the fiscal uncertainties, Amazon offers advertisers the flexibility to purchase live sports inventory independently, including NBA games. Carney hopes this will entice brands to increase their spending on Amazon’s demand-side platform (DSP), which provides access to Amazon’s search, display, and video inventory, enhanced by e-commerce audience data.
Navigating Economic Challenges
Carney acknowledges the challenges posed by tariffs and economic uncertainties but highlights that advertisers remain focused on achieving desired business outcomes. “It’s at moments like these where performance becomes paramount,” Carney stated.
Building Trust Through Innovation
Amazon’s experience with Thursday Night Football has provided valuable insights, enabling them to develop a robust product. Carney is confident that their NBA coverage will continue to innovate and deliver best-in-class products, thus earning clients’ trust.
Measuring Performance
This year, Amazon Ads is introducing first-party measurement capabilities for sponsorships, providing advertisers with more accurate performance metrics for traditional 30-second ad units. This innovation is expected to attract more advertisers to invest in premium presenting sponsorships.
Attracting Brand Advertisers
Carney emphasizes Amazon’s commitment to using insights and data to help advertisers understand consumer behavior both on and off Amazon. This holistic approach is designed to drive outcomes aligned with advertisers’ goals.
Competitive Pricing and Ad Load
Amazon’s CTV pricing has been recognized for reshaping the streaming market. Despite increasing demand, Amazon remains committed to prioritizing ad innovation over volume, ensuring an improved ad experience rather than merely increasing the number of ads shown.
Note: This article is inspired by content from https://digiday.com/marketing/amazon-positions-nba-rights-and-live-sports-portfolio-as-a-lure-for-its-broader-ads-business/. It has been rephrased for originality. Images are credited to the original source.