Streaming TV ad prices decline with Amazon’s dominant presence

Streaming TV ad rates are on the decline, and Amazon is leading the way in influencing this trend. Currently, the cost to reach one thousand viewers on Prime Video is around $40, similar to Netflix. Experts predict that this trend may continue throughout the year, but Amazon’s impact on ad pricing is undeniable.

Robert Kurtz from Basis Technologies stated that the average video CPM on Amazon Prime in 2024 was close to $40, comparable to Netflix, while Disney+ had rates significantly higher than Amazon Plus. Advertisers at Markacy are also seeing CPMs between $35 and $40 on Amazon Prime, with Netflix rates ranging from $32 to $42 and Disney+ at $30 to $38.

Alex Block from Jellyfish mentioned that it’s currently a buyers market, and until ad load decreases or publishers find new ways to add value, pricing is likely to stay at this level. Amazon’s influence has forced competitors to lower their prices to remain competitive in the streaming landscape.

The decline in streaming ad rates began when Prime Video introduced ads last January. Amazon used its scale and e-commerce infrastructure to disrupt the market by offering cheaper inventory, resulting in lower prices for advertisers. Netflix has seen the biggest impact, with CPMs falling significantly since the introduction of ads on Prime Video.

While the streaming TV ad inventory is abundant, spending on these platforms continues to rise. However, with Amazon gaining more subscribers and introducing more ads during shows, there may be further downward pressure on prices. Overall, the streaming ad market is evolving, and various factors are at play that could continue to drive prices down.