Amazon plans to increase the number of advertisements in its popular TV shows and movies on the Prime Video streaming service.
Vice President of Prime Video Kelly Day, during a conversation with media representatives, announced that new advertising slots are planned to be added in 2025. She also told reporters that this year it was decided to launch a very light load of advertising. According to her, the corresponding decision was a measure of gentle implementation of advertising, which exceeded the preliminary expectations of customers as to what the relevant content would be like.
The media reports that Amazon’s global advertising reach is about 200 million users. It is worth noting separately that more than half of the corresponding figure falls on the United States.
Kelly Day, while talking to media representatives, also stated that the churn of customers turned out to be much less compared to preliminary expectations for the corresponding dynamic. According to her, the company has not recorded a massive groundswell of people churning out or canceling advertising. Separately, she noted that less than 20% of customers decided to pay more for content without informational materials intended for marketing purposes.
Kelly Day, while talking to reporters, also drew attention to the fact that Amazon plans to stream live news about the elections in the United States. Moreover, she said, the relevant intentions extend to sports and music events. Besides, Kelly Day talked about plans to present interactive advertising and shoppable formats for Prime Video.
The streaming service plans to increase the volume of advertising in 2025. It is worth noting that in the current year, the corresponding figure exceeded the target mark of $1.8 billion. This amount includes advertising in live sports telecasts.
Last September, Amazon first announced its intention to include limited advertisements in Prime Video shows and movies. Also, at that time, the company announced plans to launch an additional tier without promotional materials. This offer is available for an additional fee.
Amazon is committed to having significantly fewer advertisements on its platform than linear TV and other streaming TV providers.
It’s worth noting that marketing content has recently been an important component in the streaming area. Last year, Netflix launched its advertising-supported tier. In July, the executives of this company informed investors that in the second quarter, the membership of the mentioned tier increased by 34%. Netflix also noted that revenue from corresponding content is showing significant growth and is becoming a more significant contribution to its business. The company also expects advertising to be a major factor in the upward dynamic of its earnings in 2024 and 2025.
Returning to Amazon, it is worth noting that currently this business structure is multifunctional and implements the practice of presence in many spheres of activity. This e-commerce giant is also the owner of the best American delivery service and a major player in the global technology sector with ambitions in the area of artificial intelligence.
