Amazon Ads announced three new advertising formats for streaming TV on May 7. Shoppable carousel ads, interactive pause ads and interactive trivia ads will come to its streaming channel in the future, although Amazon did not say exactly when.
The retailer will formally present the new interactive ad types at a presentation on May 14.
Amazon introduced ads to Prime Video, its streaming platform, in early 2024. For an extra $2.99 per month, Prime members can opt out of seeing ads. Amazon said Prime Video with ads has an average monthly reach of 200 million consumers. The retailer’s advertising business shows specific ads to consumers, targeted based on its trove of customer data.
“Amazon Ads continues to reimagine the streaming TV experience with interactive ad formats that are seamlessly shoppable and help advertisers meaningfully connect with customers,” said Alan Moss, vice president of global ad sales for Amazon Ads. “We are developing innovative experiences to help brands better engage with customers, as we work to transform streaming advertising through our differentiated combination of reach, first-party signals, and ad tech.”
Other streaming companies have also introduced shoppable ads recently. Amazon’s statement puts the new ad formats in direct competition with others, saying, “These formats go far beyond QR codes, making it easier for viewers to connect with brands while enjoying the premium streaming entertainment content they love.”
Amazon ranks No. 1 in the Top 1000, Digital Commerce 360’s ranking of the largest North American online retailers. It is also No. 3 in Digital Commerce 360’s Global Online Marketplaces Database, which ranks the 100 largest such marketplaces by third-party GMV.
Amazon’s new ads on Prime Video
It shared three new formats advertisers can purchase on Prime Video.
- Shoppable carousel ads: Retailers can present their products as a lineup that customers can browse through during commercial breaks and add to their carts using the remote. The advertisement automatically pauses when a consumer interacts with it and restarts once the interaction is over.
- Interactive pause ads: Translucent ads will appear on screen when viewers pause a show or movie. The imagery will include “add to cart” and “learn more” buttons. These advertisements can extend engagement over a traditional ad break because they remain on the screen as long as the video is paused, Amazon said.
- Interactive brand trivia ads: Amazon said these advertisements give consumers a chance to shop while being entertained with trivia about the brand. They can also be used to teach consumers about products and services and give out rewards, like Amazon credits with eligible purchases.
Amazon said that interactive ads are more valuable for advertisers based on a study it conducted. In the study, advertisers ran both interactive ads like those mentioned above and non-interactive ads. The interactive versions drove higher conversion and 10 times higher product page views than the alternative.
The growth of shoppable video
Shoppable ads are a growing ecommerce option for some of the largest online retailers. It’s not Amazon’s first foray into the area, either. It tested shoppable ads during the first-ever Black Friday NFL game it streamed in 2023.
Meanwhile, competing streamers are also incorporating the advertising option. In January 2024, Disney announced a beta program on Hulu. Consumers can make purchases through the new Gateway Shop in Hulu while maintaining their viewing experience, Disney said at the time.
Viewers see personalized advertisements for products that are sent to phones through push notifications or email. Since the launch, Disney has grown the interactive shopping features in streaming, it said.
“Our goal is to help audiences connect with the brands they love with the least amount of friction, without disrupting the content they’re streaming,” Jamie Power, senior vice president of addressable sales at Disney Advertising, said in January.
Disney is No. 92 in the Top 1000. Walmart (No. 2) and Home Depot (No. 4) are also experimenting with shoppable TV. Walmart inked a deal with NBCUniversal in November to place shoppable ads on the streaming platform Peacock. The ads gave consumers the chance to buy Walmart items featured in select Bravo shows. And Home Depot released a branded-content series with Vizio in 2023.
Most recently, TelevisaUnivision announced a partnership with Shopsense AI to integrate shopping across its streaming channels. It launched four shoppable collections along with the Latin American Music Awards.
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