6 Months Into Amazon Prime Video Ads: What We Have Learned

Rachel Dillon August 19, 2024

6 minutes read

“Streaming TV advertising is growing quickly and off to a strong start.”

That was Amazon CEO Andy Jassy’s observation in April, three months after introducing advertising to live sports and original programming on Amazon’s Prime Video service.

Jassy may even have been underselling the initiative’s success: the service has already reached a monthly audience of 200 million viewers across its programming.

While Amazon’s reach is undoubtedly impressive, it takes more than a robust audience to operate a successful CTV advertising business. A successful platform also requires data, measurement and attribution.

It’s all easier said than done, so how has Amazon performed in these areas in their first six months? Who can take advantage of Prime Advertising? And for those who can’t, are there other approaches that allow them to benefit from Amazon’s unique offering?

What Amazon Offers Advertisers

Amazon’s advertising assets offer a unique set of strengths (and some challenges they are still addressing) when compared with other video marketing channels:

1. Data

The Good:

Amazon’s eCommerce marketplace dominance provides unparalleled access to data, particularly in specific verticals like food, drink, CPG, entertainment, fashion, and home and garden. This data extends beyond the eCommerce platform to include shopping data from Whole Foods, allowing for comprehensive attribution offerings.
The combination of data and reach makes Amazon’s audience the most compelling on the market, allowing advertisers to track various conversion metrics such as branded searches, cart additions, purchases, and total sales.

The Bad:

Leveraging Amazon’s data requires advertisers to have significant internal capabilities and resources. They must know how to find their audience and analyze results effectively.
Not all advertisers can take full advantage of Amazon’s data due to the need for scale and sophisticated data handling capabilities.

2. Reporting

The Good:

Amazon’s robust reporting capabilities allow for an extensive range of insights due to the sheer volume of data it collects.

The Bad:

The reporting can be overwhelming for some advertisers, as it may be too complex and offer more data than can be easily interpreted or acted upon.
Amazon would benefit from making the reporting more client-centric by focusing on delivering a smaller number of highly actionable insights.

3. User Experience

The Good:

Amazon Prime Video delivers a viewing experience with fewer ads compared to linear TV and other streaming competitors, allowing advertisers to better manage frequency and reduce viewer fatigue while serving ads alongside premium content.
The platform’s strong original series should be particularly appealing to advertisers.

The Bad:

Amazon’s DSP user experience is still evolving and is not as intuitive or feature-rich as competitive offerings from legacy DSPs. The platform's appeal to marketers will grow as it becomes more user-friendly and functional.
Customer support is an area where Amazon must develop and streamline its processes, leaving room for improvement both for the platform and its users.

4. Innovation

With all that it already has to offer in the data department and otherwise, Amazon is also focused on showcasing beta opportunities–like Fire TV rotator, Whole Foods Digital Out of Home (DOOH), and others.
They continue to roll out these new opportunities for advertisers to test new capabilities that leverage the broad footprint of their properties and showcase their unique access points, transforming them into new media opportunities.

How to Advertise with Amazon Without Using Prime Video

If Prime Video isn’t the right fit (whether due to strict creative standards, budget limits, or category restrictions) you can still tap into Amazon’s broader advertising network.

Platforms like Fire TV, Freevee, and Amazon’s online video inventory give you access to the same rich targeting capabilities powered by shopper behavior and first-party data.

These channels don’t require TV-grade assets but still let you reach high-intent audiences across devices.

Here’s how to start:

Review your ad creatives to see if they align better with Fire TV, Freevee, or Amazon’s OLV placements instead of Prime Video.
Identify your ideal audience segments using Amazon’s shopping, browsing, and demographic data.
Choose the right Amazon ad products based on your goals—whether it’s awareness, engagement, or direct response.
Use Amazon DSP or a trusted partner to access inventory, run campaigns, and manage targeting without needing a direct relationship.
Track performance closely with Amazon’s attribution tools and optimize based on real-time insights.

By shifting focus to Amazon’s alternative video properties, you can still launch targeted, impactful campaigns without being boxed out of Prime Video.

Test Out Amazon's Ad Ecosystem with Strategus

Amazon’s ecosystem offers unmatched data, targeting, and scale– and you don’t need to be on Prime Video to benefit.

At Strategus, we help brands tap into Amazon DSP and run high-performance campaigns across Fire TV, Freevee, OLV, and more.

Here’s what you get with Strategus:

Direct access to Amazon DSP without needing a direct Amazon relationship
Expert targeting using Amazon’s first-party shopper data
Flexible creative options that don’t require TV-level production
Campaigns across Fire TV, Freevee, and OLV with measurable outcomes
Real-time attribution and optimization to improve performance continuously

Test the full power of Amazon advertising, without the complexity.

Contact Strategus today.

Frequently Asked Questions

Why Does Prime Video Have Ads Now?

Amazon introduced ads on Prime Video to support its growing advertising business and monetize its large viewer base. This shift aligns with industry trends as more platforms move toward ad-supported models. It helps Amazon offer lower-cost plans while giving advertisers access to high-quality streaming audiences.

What Is One Benefit of Using Prime Video Ads?

Prime Video ads let advertisers reach a massive, highly engaged audience with premium content and fewer interruptions. The platform gives access to Amazon's rich shopper data, allowing brands to target users based on real shopping behavior and track performance across the full purchase funnel.

What Is One Benefit to Advertisers Who Develop Video Content as a Co-Marketing Campaign With Amazon, Which Is Not Available With Standard Video?

Co-marketing with Amazon lets advertisers tap into exclusive shopper insights and place content alongside relevant products. This integration allows direct influence on purchasing behavior and gives access to unique placements within Amazon's ecosystem that standard video campaigns cannot reach.

Does Amazon Prime Video Have Ads Now?

Yes, Amazon Prime Video began showing ads in early 2024. Most subscribers now see limited ads during streaming unless they choose to pay extra for an ad-free version. The platform uses ads to offer a lower-cost subscription tier and expand its advertising business.

Why Are There Ads on Amazon Prime?

Amazon added ads to Prime Video to generate additional revenue and compete in the growing streaming ad market. The company wants to use its vast shopper data and streaming audience to give brands better targeting and performance tracking across its entire platform.

What Is the Ad Symbol on Prime Video?

The ad symbol on Prime Video indicates that the content includes advertising. It appears before or during videos that show ads, helping viewers know what to expect. This symbol also helps Amazon comply with disclosure requirements for sponsored content or commercial placements.

How to Advertise on Amazon Without Using Prime Video?

Advertisers can run video campaigns on Fire TV, Freevee, and Amazon's online video placements. These channels use the same shopper data and targeting tools as Prime Video. They don't require high-budget creatives and still reach engaged, high-intent audiences across multiple devices and screens.

What Types of Data Does Amazon Use to Target Ads?

Amazon uses first-party data from its eCommerce site, apps, devices, and services like Whole Foods. This includes shopping history, browsing behavior, product views, and purchase activity. Advertisers can target users based on real buying signals rather than just demographics or online interests.

Is the Amazon DSP Difficult to Use?

Amazon DSP offers powerful targeting tools, but it can be complex for first-time users. The platform requires experience with data analysis and campaign setup. Many advertisers use managed service partners like Strategus to simplify the process and get better results.

How Can Advertisers Measure Results With Prime Video Ads?

Advertisers can track conversions like branded searches, cart additions, purchases, and total sales using Amazon's attribution tools. The platform connects ad exposure to real purchase behavior, helping brands understand performance across the entire customer journey, from impression to transaction.

Rachel Dillon leads all go-to-market activities at Strategus, overseeing both sales and marketing. Her team works with hundreds of brands and agencies to design and execute comprehensive connected television campaigns that leverage the most innovative programmatic capabilities. Rachel is passionate about designing and scaling revenue organizations that deliver high-value customer experiences at every step of the journey, having done so in leadership roles at House of Revenue, Rachio, and eScience Labs. She was named a 2022 Top Women in Ad Tech by AdMonsters and AdExchanger.