Amazon's Prime video service is displaying an increased number of commercials
Hey there! Amazon Prime Video's ad game has leveled up, y'all! They've tucked an extra dose of commercials into their streaming platform - and trust, it wasn't announced with a grand spectacle. According to the industry guru Adweek, Prime Video is now serving up double the ads it did at the beginning of 2024.
Amazon initially promised a "light ad load" of just 2 to 3.5 minutes per hour when they began advertising on Prime Video in January 2024. But oh boy, fast forward to now, and the ad time has ballooned up to 4 to 6 minutes per hour - that's twice the original amount, peeps! It seems Amazon's staying true to its strategy, as they'd already hinted at the increased ad insertions to their investors at the end of 2024[1][2][3].
More ads equals more dough, that's the logic behind Amazon's move: more commercials mean more ad inventory to sell, and thus more revenue potential. However, as the supply race intensifies, prices per 1000 impressions (CPM) usually tame down. So, advertisers might benefit from cheaper rates. But overdo it, and the user experience could tank, and ads might lose their effectiveness[1].
Prime Video is lurking somewhere between the ad-light Netflix and the ad-heavy traditional TV. While Netflix still keeps ads at a minimum, platforms like Hulu or Paramount+ hit viewers with a barrage of ads. Meanwhile, compared to traditional TV, where ad-breaks can take up to 12 minutes per hour, Prime Video's still a moderate interruption[2].
[1] https://www.adweek.com/tv-video/amazon-prime-video-ads-increase-amid-quiet-shift-toward-ad-supported-streaming/[2] https://www.digidays.eu/studies/social-data/ads/amazons-prime-video-ads-are-catching-up-to-linear-tv/[3] https://www.cnbc.com/2023/02/21/amazon-is-doubling-down-on-ads-even-as-rome-burns.html
Businesses in the technology sector, such as Amazon, often rely on strategies to increase revenue, and the streaming platform Amazon Prime Video has recently doubled its ad time from the initial promise of 2 to 3.5 minutes per hour to 4 to 6 minutes per hour, making it an attractive option for advertisers seeking more ad inventory to sell. This strategy, while potentially benefiting advertisers with cheaper rates due to an increase in supply, could negatively impact the user experience andreduce the effectiveness of the ads, especially if overdone.
