Amazon Ads and IPG Mediabrands Ink 3-year Deal for Upcoming Prime Video Ads
Amazon’s video advertising division is about to take off. To support the launch of Prime Video Ads next year, Amazon Ads and IPG Mediabrands have inked a three-year deal. When limited commercials for TV series and movies on Prime Video debut in early 2024, the partnership will use Prime Video Ads to connect brands with relevant audiences. With this new offering, IPG Mediabrands is the first media holding company to collaborate with Amazon Ads. The first countries where Prime Video Ads will be available are the United States, the United Kingdom, Germany, and Canada. Later this year, France, Italy, Spain, Mexico, and Australia will be added. In 2024, IPG Mediabrands will provide support to each of these nations.
Key features of Amazon Prime Video Ads
Along with first-look opportunities to test new models and ad formats, as well as content sponsorships in each region, Amazon Ads and IPG Mediabrands will work together to help brands incorporate global Prime Video audiences into their media strategies. With the help of Amazon’s first-party shopping and entertainment insights, IPG Mediabrands advertisers will be able to connect with and engage streaming audiences and generate relevant ad experiences for Prime Video viewers. Additionally, they will be able to use Amazon’s data and research regarding viewers’ viewing and shopping habits to guide their marketing strategies.
How will advertisers benefit from Amazon Prime Video ads?
In September, Amazon announced that Prime Video, one of the last popular streaming services to forgo putting frequent commercial breaks in its films and television series, would begin doing so early the following year. An estimated 115 million people in the US will see Prime Video ads each month. Amazon seeks to have noticeably fewer advertisements than other streaming TV services and traditional linear TV. Simultaneously, it will give advertisers reach, frequency, and the ability to customize their messages, . Currently, a $14.99 monthly Prime Video subscription is included in the $139 annual Prime Subscription. All Prime members will transition to an ad-supported model as part of the plan, but they can choose to continue watching Amazon Prime Video without advertisements for an additional $2.99 per month in the U.S.
The introduction of Prime Video’s ad tier has been eagerly anticipated by advertisers, especially because of the immediate and sizable audience it will provide. In contrast, other streaming services have had difficulty increasing the proportion of their user base that is ad-supported. To help them create relevant ad experiences for Prime Video audiences, advertisers through IPG Mediabrands will also benefit from Amazon’s insights. These are generated through its shopping and entertainment platforms.
Competitors serving the ads in the streaming service market
Amazon is making a big advertising push now that several competitors have joined the market. This year, Netflix even tried an upfront sales model. However it has struggled to provide the volume of impressions that many large advertisers claim they require. Additionally, the executive team in charge of Netflix’s outreach to media buyers and marketers has been reorganized. Disney has also allowed advertisements on Disney+.
Amazon Prime – A one-stop destination for entertainment
Prime is a one-stop entertainment destination that offers customers a vast selection of premium entertainment in a single application. Customers can find all of their favorite films and television shows on Prime Video. It can be live sports, entertainment from Amazon MGM Studios and other studios, third-party channels that are available as an add-on subscription through Prime Video Channels. Moreover, they can also find movies and series that can be rented or purchased through the Prime Video store.
IPG Mediabrand’s wide range of iconic clientele
A division of Interpublic Group, IPG Mediabrands is responsible for media and marketing solutions. IPG Mediabrands oversees more than $47 billion in marketing investment globally on behalf of its clients. This is across its full-service agency network, UM, Initiative, Mediahub, and through its award-winning specialized business units, Healix, Kinesso, Magna, Mediabrands Content Studio, Orion Holdings, Rapport, and the IPG Media Lab. Among the many well-known and iconic brands in the world are those from IPG Mediabrands’ diverse portfolio of industry sectors, which includes automotive, e-commerce, direct to consumer and e-commerce, retail, hospitality, food and beverage, pharma, health and wellness, entertainment, financial services, energy, toys, and gaming. Some of their clientele are well-known marketers such as Johnson & Johnson, CVS, American Express, Mattel, Henkel, and General Mills.
Here’s what they said
Eileen Kiernan, global CEO of IPG Mediabrands said,
Amazon’s latest offering brings a first-to-market opportunity for our clients to reach consumers at the category level in a comprehensive, scalable way—from culture and content to commerce and shoppable experiences. We are excited to play a role in this game-changing addition to the streaming TV marketplace and serve as Amazon’s anchor partner as they bring Prime Video ads to life.
Alan Moss, vice president of global sales for Amazon Ads added,
From our first conversations, IPG Mediabrands has leaned in so that their clients can be among the first brands to engage with the Prime Video streaming audience across the nine countries we’ll serve starting in early 2024. When we begin introducing limited ads into Prime Video shows and movies, Prime Video will be one of the largest premium ad-supported services in most countries where we operate. This means we can simultaneously offer brands unmatched reach and frequency to help them achieve their business goals.
Dani Benowitz, global president of MAGNA, the investment and intelligence arm of IPG Mediabrands stated,
As longtime partners of Amazon Ads, we are thrilled to participate in a global deal of this scale across all of the countries in which Prime Video ads will launch throughout 2024. The ability to access the entire Amazon streaming TV product suite is an added benefit for both endemic and non-endemic brands within our broad client portfolio.
- Netra is a Dual Masters graduate in International Business and Marketing. She is a content-writing enthusiast and a social media addict. In her downtime, you will find her headbanging to Pop songs from around the world. She is also a sports fanatic and especially loves F1, Volleyball, and Cricket. Her hobbies are baking and watching Anime.
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