Amazon continues proving that video ads are critical for brands seeking success in the marketplace. At unBoxed in 2023, Amazon announced the launch of self-service Sponsored TV ads coming to the ad console. With this campaign type, Amazon hopes to make TV ads available to big and small brands.
According to Amazon Ads vice president Ruslana Zbagerska, “TV is an important brand-building strategy and should not be out of reach for any business. Sponsored TV is a new streaming TV ad solution that helps brands connect with their audiences on the largest screen in the home. This includes brands that are new to advertising. Sponsored TV campaigns provide efficient reach powered by our machine-learning optimization models, enabling brands to benefit from Amazon’s first-party shopping and entertainment signals to create relevant ad experiences for viewers.”
What Do Sponsored TV Ads Look Like & How Do We Build One?
Who can use Sponsored TV ads? These ads are available to registered brands on Amazon. Unlike Amazon’s Demand Side Platform (DSP), Sponsored TV ads do not have a minimum budget and do not have a time commitment to run. This makes Sponsored TV ads much more accessible to brands that do not have multi-figure advertising budgets.
Sponsored TV ads look like any other streaming ad we have become familiar with. Video content and an interactive QR code will appear that viewers can scan to go directly to the product detail page on the Amazon shopping app. These ads will show on Amazon-operated streaming platforms, including Amazon Prime, Freevee, Twitch, and more.
With an increasing number of video-based advertising opportunities, brands must have compelling video content. With Sponsored TV ads, brands must follow Amazon’s Sponsored TV guidelines to ensure their content is compliant and will be approved to run. See the video specs below for more information.
Sponsored TV Ad Safe Zones
In addition, video content must allow for the interactive QR code that will appear over the ad video. See below for the safe zone that the video content must accommodate. It is different than the safe zone needed for Sponsored Brand and Sponsored Display video ads, so it will require unique content to be used.
Sponsored TV Targeting
Sponsored TV ads can be targeted using Amazon’s audience network and interests. These ads run on a traditional cost-per-impression (CPM) method. The interest targeting can drill down into the type of content Amazon Prime Members are viewing. So if you know your brand’s target consumers are avid superhero fans, it makes sense to induce the Action/Adventure content interest.
Additionally, these ads can be targeted using In-Market Category data. This allows advertisers to reach shoppers who are likely to be interested in the product featured in the ad. This interest is informed by the shopping data Amazon collects from its Members. For example, if a shopper has been browsing Amazon for a new skincare product and is watching Prime, an ad targeted at the Health and Beauty category could then be shown to them through Sponsored TV ads.
The Impact of Sponsored TV Ads
While Amazon Sponsored TV ads are an exciting development for advertisers and brands, they are an unwelcomed development for Prime Members. This is hampering the adoption rate of this new ad type by brands that want to avoid getting caught in the crossfire between Amazon and its paying members.
Not only are Amazon Prime Members displeased with this addition, but creators who launch their shows on Amazon Prime are also upset. Lulu Wang, director of “Expats,” shared her extreme displeasure. “I’m very angry about that. If I had known, I would’ve created in a different way because it’s not a show that has cliffhangers or commercial breaks to make sure people come back,” Wang told The Hollywood Reporter.
Whether brands are excited to dive into streaming ads that have been inaccessible in the past or are hanging on the sidelines to avoid viewer frustration, one thing is for certain: streaming ads are here to stay with all streaming platforms adding commercial tiers. Amazon is in good company with Hulu, Netflix, Disney+, Peacock, Paramount+, and Max, all having ads included in their lower-cost packages. Brands need to include streaming ads in their comprehensive strategy, but they need to do so strategically.
