You don’t need to dive deep into history. Just a few months back, Prime Video was struggling even to grab ad sponsors. But, the situation has turned topsy turvy.
Just three months into launching ads, Prime Video is impressing advertisers. Five top TV ad buyers revealed that they’re seeing positive results. Interestingly, the advertisers who tried the platform saw an increase in sales on Amazon.
Based on this, predictions say that Prime Video could grab up to 15% of advertisers’ video budgets this year. It would be definitely comparable to the likes of YouTube and Hulu.
One reason for Prime Video’s success is its willingness to adjust prices. Initially, it asked for $30 per thousand views. But, it’s now offering more competitive rates. Plus, Prime Video is going above and beyond to meet advertisers’ goals by reaching even more people than expected with their ads.
Financial experts believe that Prime Video’s ads could bring in over $5 billion for Amazon, mostly from ads. And there’s also revenue from viewers who pay a fee to skip ads. This is a proper double benefit to the platform.
And it is definitely a concern for traditional TV companies like Comcast and Disney.
Prime Video has made very significant progress in the ad market. People and experts had zero expectations from the platform but they proved them wrong. That is perhaps the best thing.
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