Amazon has taken a significant leap forward in the advertising realm with the announcement of new ad formats for Prime Video, revealed at its prestigious second annual upfront event. This announcement, made on May 12, was strategically timed to coincide with the company’s broader upfront presentation that promises to reshape how brands engage with consumers through Prime Video.
The tech giant introduced a groundbreaking pause ad format that utilizes artificial intelligence (AI) to deliver contextually relevant ads. These ads dynamically pair AI-generated messaging with on-screen imagery, offering advertisers a unique opportunity to engage viewers in a more personalized manner. For instance, a viewer immersed in a scene from ‘The Summer I Turned Pretty’ could find themselves presented with a T-Mobile ad that resonates with the show’s emotive themes, thanks to AI-driven contextual insights.
Expanding on its innovative advertising toolkit, Amazon also launched a new shoppable ad format. This feature draws from real-time data within the Amazon store, allowing viewers to make purchases seamlessly with just a click of their remote. This format is set to revolutionize the shopping experience by merging content consumption with online shopping in real-time.
In addition, Amazon is broadening its interactive ad formats to cater to both endemic and non-endemic brands. For brands that don’t sell directly on Amazon, the new formats offer a variety of calls to action, including location-based messaging, lead generation, and subscription options. This strategy not only enhances brand engagement but also expands Amazon’s advertising reach beyond its traditional e-commerce boundaries.
Prime Video’s ad-supported reach continues to grow, with the platform now boasting an average monthly audience of over 130 million U.S. customers. Engagement levels have seen a substantial increase, with monthly ad-supported viewing hours up by nearly 40%. These figures underscore the platform’s success in capturing and retaining viewer attention in a competitive streaming landscape.
The event itself, held at the iconic Beacon Theatre, was a spectacle of Hollywood glamour, featuring appearances by stars such as Arnold Schwarzenegger, Michael B. Jordan, and Jamie Lee Curtis. Amazon utilized this star power to highlight the achievements of its first full year of advertising on Prime Video and to set the stage for future growth.
Tanner Elton, Amazon’s vice president of U.S. ad sales, emphasized the company’s commitment to simplifying media planning and buying processes. “Amazon is a one-stop shop for all your needs,” Elton stated, highlighting the company’s enhanced precision, insight, and performance capabilities.
Amazon’s advertising efforts are supported by impressive data, with reports indicating that 88% of Prime Video viewers have made purchases on Amazon. The company’s average monthly ad-supported audience in the U.S. has grown to over 300 million, marking a significant increase from the previous year.
The introduction of these new ad formats comes on the heels of last year’s successful debut of shoppable carousel ads, interactive pause ads, and brand trivia ads. According to a Kantar study, these formats have driven a 30% lift in brand awareness and a 28% increase in purchase intent. Alan Moss, vice president of global ad sales for Amazon Ads, affirmed the effectiveness of these formats, stating that they are designed to drive measurable action both on and off Amazon.
These developments reflect Amazon’s strategic use of generative AI and data-driven insights to offer advertisers unparalleled opportunities to connect with their audiences. By turning advertisements into extensions of the entertainment experience, Amazon is redefining the traditional ad model and setting new standards for industry engagement.
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Note: This article is inspired by content from https://www.marketingdive.com/news/amazon-launches-ai-powered-contextual-ads-at-blockbuster-upfront/747944/. It has been rephrased for originality. Images are credited to the original source.