How Amazon Prime Video Became Essential for Brand Media Plans

Amazon Prime Video is celebrating its first year in the ad business today, and it’s been an impressive journey. In just 12 months, the platform has solidified its position as a key player in brand media plans, surpassing its streaming competitors and boosting Amazon’s ad business.

Initially, Amazon Prime Video focused on promoting its high-quality content like “The Marvelous Mrs. Maisel” and “The Boys.” However, over time, it shifted its strategy to showcase its enhanced measurement capabilities and new ad formats. This move, coupled with competitive CPM rates, has compelled advertisers to increase their spending on the platform.

According to data from media agency Tinuiti, ad spend on Amazon has surged eightfold between the first and fourth quarters of 2024, reflecting the growing confidence of buyers in the platform. Agencies like Medialab and Digital Remedy report that clients are now allocating significant portions of their budgets to CTV ads on Amazon Prime.

With 104 million U.S. users on its ad-supported tier, representing 80% of its user base, Amazon Prime has built a massive advertising audience in just a year. By making the ad-supported tier the default option for Prime users, the platform has successfully attracted a large and engaged audience for advertisers.

Despite the fierce competition from streaming giants like Netflix, Amazon Prime Video has managed to keep its ad prices competitive, ranging from $33 to $29 throughout the year. This, in turn, has made it easier for agencies to recommend Amazon Prime for streaming ads to their clients.

Moreover, Amazon Prime’s collaboration with Nielsen for audience measurement in the U.S. has helped build trust with buyers. However, in other markets, buyers remain cautious about relying solely on the streamer’s audience estimates, emphasizing the need for transparent and reliable measurement metrics across all regions.

All in all, Amazon Prime Video has made significant strides in the ad business in just one year, solidifying its position as a key player in the streaming advertising landscape. With its compelling content, competitive pricing, and robust measurement capabilities, Amazon Prime shows no signs of slowing down in the ad space.