Traditional TV advertising is dying. That’s easy to say, as numerous streaming platforms have become a favorite amongst businesses for advertising purposes. Then there’s Amazon, who decided to throw a surprise like no other— revive TV advertising. But how is that possible? Well, Amazon has the numbers to do the talking. Take a look:

• 115 million homes in the US use streaming TV in 2024.
• The average US household subscribes to 5.5 different streaming services.
• 2 out of 3 Amazon streaming TV viewers don’t watch terrestrial TV.

Amazon recognizes a substantial opportunity to get ahead of the competition and establish a leading position. Their initiative, Sponsored TV, is a straightforward and inclusive approach to achieve this, aiming to make it accessible to everyone, not just Amazon Marketplace sellers. This type of advertising, which Amazon refers to as non-endemic, has no minimum ad spend, is self-serve, and allows any advertiser to use Amazon’s advanced first-party audience data. According to Amazon, these ads are “non-skippable and appear on the largest screen in the house.”

According to Mike Hopkins, senior vice president of Prime Video and Amazon MGM Studios “No other streaming service can reach the number of customers with premium entertainment that we can. And our audience is not just a number on a page.”

What advertising options are available on Amazon streaming TV? 

Sponsored TV 

Sponsored TV is ideal for self-service advertisers who are new to streaming TV. This option requires no minimum spend, upfront commitments, or prior TV advertising experience, offering flexibility and ease in setting up campaigns through the ads console. With interactive features like QR codes and ‘Add to Cart overlays’, it supports existing sponsored display campaigns as a complementary solution or an evergreen strategy.

Streaming TV via Amazon DSP

Streaming TV via Amazon DSP is best suited for self-managed or managed service programmatic traders. It requires a $50K minimum spend and involves more hands-on campaign management, which may require. This option provides greater supply controls, transparency through curated deals, and upcoming access to Prime Video inventory. It also supports integrated ad tech media planning tools to help measure the impact of specific audiences and channels across your TV investments.

How to create a Sponsored TV campaign 

• Log in to your Amazon Ads account. 
• On the “Create Campaign” button and choose the Sponsored TV option on your dashboard.
• Define your campaign settings, including the campaign name, budget, and duration.
• Choose a product from your brand to be part of your ad group. This product will serve as the destination page for your ad. When viewers engage with your ad by scanning the QR code, they will be directed to the detailed page of this product. Opting for a product detail page ensures that your ads only run when the product is in stock or has the buy box, maximizing the relevance of your traffic.
• Select the audience for your ads. You can target:
  • Viewers are likely to be interested in specific types of content (e.g., anime, comedy, romance).
  • Viewers are likely to be interested in specific product categories based on their shopping behavior (e.g., electronics, bedding, kitchen).
  • For each audience target, set the maximum bid you are willing to spend per 1000 viewable impressions.
• Upload the video creative that will be displayed to the audience. Make sure the video effectively tells a clear and engaging story about your product and brand.
• Review your campaign settings and ad content. Once everything looks good, launch your Sponsored TV campaign and reach millions of viewers.

How to create a Streaming TV campaign via Amazon DSP 

• Set up an Amazon DSP account.
• Define the goals of your campaign. Some of the most popular goals include the following:
  • Awareness: This goal focuses on making new users aware of the brand and its products, as well as keeping the brand fresh in the minds of existing customers.
  • Consideration: This involves showcasing the product as a viable solution to meet a customer’s need, solve a problem, or alleviate a pain point.
  • Conversion: The aim here is to set the brand apart from its competitors and convince users to complete a purchase.
• Go to “Create campaign” and select the “Create a video campaign” option.
• Decide the placement of your ad.
• Define your targeting criteria, such as Amazon audiences and custom audiences.
• Determine your KPIs and optimization strategy.
• Upload your creative assets or use Amazon’s creative builder to create one. 
• Review the campaign and monitor its performance.

What creatives are needed for Amazon Streaming TV? 

All ads have to be in video format with a 16:9 aspect ratio and a bit rate of 8mbps. Here are some general guidelines to follow: 

• Ensure the majority of the ad’s visual space features full-screen motion, incorporating multiple areas of activity such as animated products, vertical videos, and dynamic text. Simply adding a separate motion overlay to a static image, similar to basic animation in a presentation, does not meet the required standards.
• High-resolution video ads are necessary to run without time limitations. Amazon may reject or restrict the times for videos that are slightly pixelated or have a bit rate ranging from 4mbps to 8mbps.
• Ads with poor video quality or low resolution, specifically those with a bit rate below 4mbps, are not accepted.
• Do not use videos containing third-party watermarks.
• Video ads may contain either pillar box or letterbox formatting, but not both.

Benefits of advertising via Streaming TV

• Potential to expand your reach: Engage with an average monthly audience of 175 million viewers across Amazon’s ad-supported Streaming TV in the US.
• Access to exclusive content: Your brand can appear in a wide range of premium TV shows, movies, live entertainment, and exclusive original content. Park Associates named Prime Video as the No. 1 U.S. subscription streaming service, and Freevee’s total viewing hours in 2023 increased by 38% year-over-year, exceeding 3.4 billion hours.
• Access robust ad-tech solutions: Streaming TV ads provide access to a comprehensive suite of ad-tech solutions. Reach customers through over 20,000 first-party audiences, informed by billions of shopping and streaming signals updated in real-time. Align with relevant contextual content to connect with your audience at the right moment. Amazon DSP offers intelligent, easy-to-use tools to plan, activate, and measure your streaming TV campaigns effectively.

Conclusion

With over 115 million US homes engaging with streaming TV, Amazon’s Sponsored TV and Streaming TV via Amazon DSP offer a unique opportunity for advertisers to reach a diverse and highly engaged audience. Sponsored TV democratizes access to impactful advertising, while Amazon DSP provides advanced targeting and measurement using Amazon’s first-party audience data. Seamless integration with Amazon’s e-commerce platform allows for tracking the entire customer journey, enhancing campaign effectiveness. Interactive elements like QR codes boost engagement and conversion, and access to premium content ensures high-quality ad placement. Amazon’s innovative ad-tech solutions make it a powerful platform for brands to expand their reach and connect meaningfully with viewers.