Unveiling Amazon's Comprehensive Advertising Strategy: Scale and Results Guaranteed

Amazon made a big impact on Tuesday (May 14) with its first-ever event during upfront week, where media and tech companies present their advertising pitches to brands and agencies. This shift from a digitally focused NewFronts presentation to upfronts reflects Amazon's focus on expanding its video-focused ad offerings.

For its debut event, Amazon transformed Pier 36 in New York into a neon-lit space reminiscent of a high school gymnasium. The venue, previously used by Disney and TelevisaUnivision for upfront presentations, welcomed hundreds of attendees. Guests enjoyed interactive stations featuring Prime Video properties, delicious appetizers, and swag bags.

Amazon proved it could compete with traditional media giants like Disney and NBCUniversal by showcasing A-list celebrities such as Jake Gyllenhaal, Reese Witherspoon, and Will Ferrell, along with an opening performance by Alicia Keys to highlight the premium quality of their content.

During the event, Amazon emphasized its scale as a key differentiator from its competitors. Prime Video now reaches an average of 200 million global customers monthly, with 115 million in the U.S. This makes it the largest premium ad-supported streaming service both globally and in the U.S., according to Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios, who described these achievements as the "day one" for the newly ad-supported service.

Making Prime Video a Comprehensive Entertainment Destination

At the event, Hopkins expressed our commitment to transforming Prime Video into a go-to hub for entertainment. With your collaboration, we aim to create not just a place for beloved programming, but also a top choice for advertising opportunities.

All-encompassing Approach for Everyone

Amazon executives emphasized the importance of scale, focusing on both the quantity and quality of viewers for advertisers. Many of these viewers do not use other streaming services or watch linear TV. They tend to be younger, more engaged, and are active shoppers. Prime Video's average unique audience surpasses other streaming services by 47%, and the platform drives a 56% increase in engagement among adults aged 18 to 49 compared to linear TV. The company also highlighted the unique advertising offerings that set them apart from traditional media conglomerates.

Tanner Elton, vice president of U.S. ad sales for Amazon Ads, stated, "Throughout this week, you will hear presentations discussing reach, audience insights, measurement capabilities, and content. The key difference with us is that we are not just an entertainment company looking to monetize our shows with the latest ad technology or third-party audience signals."

Amazon's sponsored product ads on its flagship e-commerce site remain the main driver of growth, with a 24% year-over-year increase to $11.82 billion in Q1. According to Sarah Iooss, director of U.S. agency development and Twitch for Amazon Ads, the company can leverage its first-party signal and measurement capabilities to make all marketers "endemic to Amazon."

Alan Moss, vice president of global ad sales for Amazon Ads, highlighted the significance of adding ads to Prime Video in January, which helped "connect the dots" across the Amazon ecosystem. Amazon views its advertising offering as full-funnel, at scale, for all brands.

Content still rules everything

Moss mentioned that selling on Amazon is no longer a determining factor. With our advanced ad tech and clean room, we are able to assist all advertisers in linking their brand objectives and awareness directly to sales results and category expansion.

TV networks used to have upfronts to showcase their fall programming, but with the rise of streaming, things have changed. Amazon, like its competitors, is focusing on creating content based on existing intellectual property to cater to the growing demand for nostalgic favorites.

Amazon's MGM Studios is working on a sequel to the recent "Road House" reboot, while MGM+ and Prime Video are collaborating on a live-action series centered around "Spider-Man Noir," with Nicolas Cage reprising his role from the "Spider-verse" movies. Additionally, Prime Video has ordered a series based on the popular video game "Tomb Raider" and a prequel series to "Legally Blonde" called "Elle" from Reese Witherspoon's Hello Sunshine company. Witherspoon will also star alongside Will Ferrell in the comedy film "You're Cordially Invited" for Prime Video.

"Thursday Night Football" remains a popular highlight of Amazon's sports lineup. In 2023, the NFL games attracted more viewers each week, resulting in a 24% increase in the average viewership for the whole season. This year, Prime Video will feature the season opener between the Buffalo Bills and Miami Dolphins, as well as its first NFL Wild Card Playoff game.

Furthermore, Amazon Music will continue to offer Amazon Music Live, a series of live-streamed concerts that follow the Thursday Night Football broadcasts. The viewership for these concerts has grown by an impressive 313% compared to the previous year. Additionally, Amazon Ads will introduce The Glitch, customized playable worlds in Fortnite tailored for gaming communities on its Twitch platform.

Amazon not only creates original TV and films for Prime Video, but also licenses content for the platform. In addition, they have expanded to offer over 500 free ad-supported TV channels (FAST), partnered with 135 other services, increased their sports programming, and continue to be the largest seller of movies for rent or purchase. Recently, the company introduced three new streaming TV ad formats on Prime Video to enhance interactivity and shopping options, catering to advertisers looking for a blend of connected TV and retail media.

According to Hopkins, Amazon's Chief Content Officer, no other streaming service can match their reach to customers with premium entertainment. Their audience is not just a number, but highly engaged viewers who appreciate the wide variety of programming available, including live sports, series, and films.

Editor's P/S:

Amazon's first-ever upfront event was a resounding success, showcasing its commitment to expanding its video-focused ad offerings. The company's scale, premium content, and unique advertising capabilities set it apart from traditional media giants. Amazon's emphasis on data-driven insights and its ability to connect brands directly to sales results make it an attractive option for advertisers seeking full-funnel marketing solutions.

While Amazon's focus on creating content based on existing intellectual property aligns with the growing demand for nostalgic favorites, it also highlights the challenges of differentiating itself in a crowded streaming landscape. By leveraging its vast ecosystem, including e-commerce, music, and gaming, Amazon aims to create a comprehensive entertainment destination that caters to a wide range of viewers and provides advertisers with a unique and immersive experience.