Amidst rivals like YouTube and Netflix, Amazon is right on track with its internal target of $1.8 billion with their advertising strategies.
Since last year Prime Video started running ads on films or tv shows that are available in the streaming platform. The marketing strategy is on point in this case because first of all to access Amazon Prime Video you have to have a subscription , and now to give a cherry on top, they added that to avoid the ads they pay more money.
This is a top notch strategy, because one they are getting money from the ad revenue also the bonus added when subscribers are paying more to avoid ads.
In recent years Amazon made video advertising a pillar of their financial strategy, by pursuing major sports rights as a key element of its ad-friendly programming, alongside those offerings on Prime Video, Amazon also operates the FAST service Freevee as well as gamer-centric live streaming platform Twitch.
Overall in the past few years the streaming sites have shifted towards ads to generate more revenue, and with its fast revolving step, the ads aren’t linear anymore.
It has been gathered from a survey this week that research firm eMarketer said that five streamers would book at least $1 billion in ad revenue during 2024.
And in this race Amazon ranked third on eMarketer’s list, after Hulu and YouTube, with an estimated $3.13 billion.
Amazon CEO Andy Jassy mentioned that the company’s overall estimated monthly view is 200 million , and with the performing ad service it is off to a good start.
When asked to the Co- CEO of Netflix about this streaming market , he said , “Amazon came into the market in a pretty strong way.” According to him , advertising is an option and Amazon has it in their DNA, it is the core structure of their being.
He also added, “We’re going to go drop to the bottom, essentially, and start to compete from that basis.”
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