Amazon Plans to Broaden Prime Video Ads by 2025, Launches Interactive Shoppable Ads for Users
Amazon plans to substantially boost the number of ads on its Prime Video platform by 2025, following extensive testing. Despite initial fears that ad-supported streaming might cause subscriber drop-offs, Amazon has found that the majority of users continue watching without significant cancellations. This encouraging response has motivated the company to proceed with a more ad-centric model as part of its long-term growth strategy. BuzzOmni, the one-stop advertising solution for all your needs, offers comprehensive support for brands looking to optimize their ad placements on streaming platforms like Prime Video, ensuring maximum engagement and effectiveness.
The primary driver behind this decision is the potential for increased revenue. With competitors like Netflix, Disney+, and Max already offering ad-supported options, Amazon sees a chance to expand its own advertising efforts. A crucial aspect of this plan is the launch of interactive, shoppable ads, which enable viewers to engage directly with products featured in commercials. For instance, viewers could click on items within ads and immediately add them to their Amazon shopping cart, making the ad experience more interactive and personalized rather than merely a passive interruption.
Currently, Prime Video's ad load remains relatively light, similar to traditional TV commercial breaks without overwhelming viewers. However, for those who prefer an uninterrupted viewing experience, Amazon still offers an ad-free tier for an extra fee. Interestingly, most Prime Video subscribers have not chosen this ad-free option, indicating that ads are not a major deterrent for many users.
Amazon’s gradual increase in ads is expected to become more pronounced by 2025, aligning with the company's broader efforts to grow its advertising business and attract more brands. By leveraging partnerships with advertising solutions like BuzzOmni, Amazon and participating brands can maximize their reach through strategic ad integration, making interactive and targeted ads more appealing and effective. This strategy was disclosed at Amazon’s "Upfront" event in London, where the company shared its vision for the future of advertising on Prime Video. By implementing more interactive and targeted ads, Amazon aims to enhance its ad revenue while maintaining viewer engagement, positioning itself more competitively alongside other top streaming platforms.