Amazon to Introduce Ads on Prime Video from 2024

Amazon made an announcement on September 22 that Prime Video will soon feature limited ads starting in early 2024.

The plan is to roll out this ad feature gradually, beginning with subscribers in the US, UK, Germany, and Canada. Users in France, Italy, Spain, and Mexico will see ads later in the year.

In the US, subscribers can opt out of ads for an extra $2.99 on top of their Prime membership subscription ($139 a year or $14.99/month). Pricing for other countries hasn't been disclosed yet.

Why is Amazon Doing This?

Amazon is following the trend of other streaming services like Netflix and Hulu by introducing ads to its platform. This move is driven by the growing market for ad-supported video-on-demand (AVOD), which is projected to reach nearly US $87.1 billion by 2024.

The introduction of ads on Prime Video allows Amazon to generate more revenue, compete with other streaming platforms, and offer cheaper options to attract new customers.

What Sellers Can Expect

For Amazon sellers, this development is a positive one. With over 200 million Prime members globally spending about 17.11 hours a month on Prime Video, ads can expose products to a large, engaged audience.

While the details of how ads will work on Prime Video are yet to be revealed, sellers can anticipate using Amazon's existing advertising network, including display ads, video ads, and DSP.

Challenges to Consider

However, there are challenges to advertising on Prime Video. Competition, maintaining high ad quality, and adhering to Amazon's guidelines for compliance are factors sellers should be mindful of.

In conclusion, Amazon's move to include ads in Prime Video is set to change the streaming services landscape. While some details are still undisclosed, the potential for brands to connect with their target audience is significant.