Welcome to doomscrolling for the streaming ad market. As much as Amazon is the de facto giant in ecommerce, the company has sort of played second fiddle to the likes of Netflix, Disney, and Paramount among others in streaming. While the expansion into live events with the NFL is noteworthy, Amazon’s move to convert its entire Prime Video subscriber base to an ad-supported version has truly reshaped the ad market. And, the impact extends beyond streaming services and into the entire advertising landscape. Amazon is becoming the ad industry's "3 Body Problem". Dominate ecommerce, maximize revenue through subscriptions, and monetize its Prime customer base. Netflix, sure. But, Amazon's impact is now rippling towards Alphabet and television networks as well. The strategy with its huge customer base is already impacting negotiations these platforms are having with advertisers for the upcoming TV season, leading to a significant decrease in ad prices for everyone. "Stranger Things" or not, Amazon has Netflix doing the unthinkable given its own positive growth - cutting ad rates - and even going further by introducing new options like product placement to lure advertisers. The numbers tell the story with Netflix now offering brands $29-$35 to reach 1,000 viewers, a steep discount from last summer's $39-$45. Like the dueling interests in "Bridgerton", someone definitely holds the advantage. Amazon's ad-supported Prime Video has 115 million monthly viewers in the U.S. alone, while Netflix's ad tier has 40 million global monthly active users. Dominant numbers on both sides, but you know who you'd pick first in a game of dodgeball. You don't need to re-watch episodes of "Silicon Valley" (though you should) to see that Amazon is meticulously building itself into a killer app for advertisers. By combining premium content, live sports, and a massive user base, they offer unmatched and scary targeting capabilities. Advertisers can not only reach their ideal customers but also track purchases made directly on the platform - the holy grail if you will. "Squid Game" for ads, anyone? Netflix is certainly making its own foray into live events, recently winning rights to broadcast two NFL Christmas games as well as becoming the new home of WWE Raw come 2025. It's even cut the mustard with a unique live event: "Chestnut vs. Kobayashi: Unfinished Beef," a hot dog-eating showdown featuring legendary rivals Joey Chestnut and Takeru Kobayashi. The chase for "The Crown" is afoot. All of this underscores Netflix's strategy to hook viewers with unconventional live programming and through diversified content offerings. But more importantly, counter Amazon's dominance in ad-supported streaming by offering a more engaging experience beyond just price https://lnkd.in/gj_3Y39Q #netflix #amazon #streaming #advertising #television
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Last year, Americans spent more time watching streaming services than traditional TV for the first time, indicating a major shift in viewer habits and opportunities for advertisers. As the market adapts, Amazon and Walmart are joining Netflix as the new "Big Three" in streaming, leveraging their robust data capabilities to transform the advertising landscape. With the annual upfront negotiations on the horizon, it's crucial for marketers to revise their strategies now. Our very own Group Director Danny Weisman decided to write a column recommending to 1. Secure early deals 2. Focus on long-term ad strategies around these dominant players 3. Prepare for a new era of complex analytics akin to those seen in social and search advertising Interested in hearing more? Check out the MediaPost article below. #NoblePeople #MediaAgency #Media #Marketing #Streaming #MediaStrategy #TVStrategy #TVBuying
The Ad-Supported Streaming Market Just Got Real
mediapost.com
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Subscription prices for Netflix, Disney+, and others are rising, pushing towards ad-supported models. Analysts predict a shift in focus to profits, not just subscribers, in 2024. Key takeaways for marketers: 1. Linear TV decline continues, with ad prices unable to compensate. Election & Olympics will temporarily boost spending in 2024. 2. Streaming services aim for profitability by raising fees and embracing advertising. Ad-supported plans are gaining traction, with CTV accounting for 15-23% of ad inventory. Expect varying ad-supported sign-up rates among major services. 3. Streaming ad price ranges are narrowing. Disney+ and Netflix lowered their Q4 2023 CPMs. YouTube stands out with lower CPMs around $15, thanks to user-generated content. Amazon Prime Video’s entry is set to shake up the streaming ad market. 4. Amazon’s Prime Video ad introduction is expected to boost Amazon’s CTV ad revenues by $3.13 billion in 2024, making it the third-largest ad seller in streaming. This shift will significantly impact the entire CTV ad market. Find out more: https://bit.ly/3RamwXV #Streaming #AdvertisingTrends #VideoAdLandscape2024
The shifts that will impact 2024's video ad landscape
insiderintelligence.com
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A wise man indeed. Check out our very own Danny Weisman's op-ed in Mediapost re: the (continued) evolution of the ad-supported streaming market! In short, we know Americans are spending more time watching streaming services than traditional TV, but this hasn't yet manifested in updated strategies for advertisers. Amazon and Walmart have joined Netflix as the new "Big Three" in streaming, with the added benefit of owning robust data capabilities to continue to transform the advertising landscape. And, with the annual upfront negotiations on the horizon, it's crucial for marketers to revise their strategies now. Danny recommends: 1. Securing early deals, for the limited time that there are deals to be had (case in point: I'm watching Fallout on Amazon - an amazing, buzzed-about show - and it's presented with limited commercial interruption by Samsung!) 2. Designing long-term ad strategies around these dominant players 3. Preparing for a new era of complex analytics akin to those seen in social and search advertising Get this type of thinking delivered to your door every day by working with Noble People. #NoblePeople #MediaAgency #Media #Marketing #Streaming #MediaStrategy #TVStrategy #TVBuying
The Ad-Supported Streaming Market Just Got Real
mediapost.com
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Amazon's Prime Video Ads Disrupt Streaming Market - Prime Video now defaults to an ad-supported tier, with a $3 increase for ad-free. - Amazon's entry adds massive ad inventory, pressuring Disney and Netflix. - Amazon's lower ad costs, driven by its ecosystem, challenge competitors. - More users are choosing cheaper ad-supported streaming plans over traditional TV. - Streaming services must adapt as Big Tech reshapes the ad market. 🌎To learn more join the AdTechGod Slack Community : https://lnkd.in/g-XzVDkX ✉️Sign up for the Marketecture Media newsletter: https://lnkd.in/gm85yuaf 📖 Article here by Yahoo https://lnkd.in/gaN52e_K
Amazon is already disrupting the streaming advertising market — here's how
finance.yahoo.com
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Streamers may be getting more expensive for viewers, but for advertisers, it's the opposite. Advertisers have more places to run streaming services — leading to a decline in prices of as much as 30% in some cases, according to top ad buyers. Which makes me wonder — how will streaming services differentiate as high-quality ad inventory becomes more plentiful and as streamers increasingly license out their shows to rival platforms? And as buying, presumably, goes programmatic? Lauren Johnson & I mapped out streaming ad prices at Netflix, Hulu, Peacock & others in Business Insider: #avod #advertising #streamingwars https://lnkd.in/eSNWruN7
It's a 'Black Friday of deals' as streaming ad prices fall. Here's how much ads now cost on Netflix, Max, Disney, and others.
businessinsider.com
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Global Top Level Executive Search Partner for Direct Response Marketing, eCommerce, eLearning & Software/iOS/Android Developers And Property Developer
Subscription prices for Netflix, Disney+, and others are rising, pushing towards ad-supported models. Analysts predict a shift in focus to profits, not just subscribers, in 2024. Key takeaways for marketers: 1. Linear TV decline continues, with ad prices unable to compensate. Election & Olympics will temporarily boost spending in 2024. 2. Streaming services aim for profitability by raising fees and embracing advertising. Ad-supported plans are gaining traction, with CTV accounting for 15-23% of ad inventory. Expect varying ad-supported sign-up rates among major services. 3. Streaming ad price ranges are narrowing. Disney+ and Netflix lowered their Q4 2023 CPMs. YouTube stands out with lower CPMs around $15, thanks to user-generated content. Amazon Prime Video’s entry is set to shake up the streaming ad market. 4. Amazon’s Prime Video ad introduction is expected to boost Amazon’s CTV ad revenues by $3.13 billion in 2024, making it the third-largest ad seller in streaming. This shift will significantly impact the entire CTV ad market. Find out more: https://bit.ly/3RamwXV #Streaming #AdvertisingTrends #VideoAdLandscape2024
The shifts that will impact 2024's video ad landscape
insiderintelligence.com
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📊 “By combining its ad-supported model with live sports streaming, Netflix not only attracts a dedicated viewer base but also creates new monetization opportunities through dynamic ad placements and exclusive content,” points out our Chief Operating Officer, Sabya Das, in this article featured in The Drum. Click below to explore how this innovative approach is reshaping the industry and gain insights from other leading experts.
While new subscriptions drove the majority of Q2 revenue growth for Netflix, the company's nascent advertising business is playing an increasingly critical role, attracting both spend from brands and new users looking for budget-friendly streaming options. Get my breakdown at The Drum, featuring commentary from Netflix CFO Spencer Neumann, Forrester's Mike Proulx and Magnifi's Sabya Das: #streaming #netflix #tv #ctv #ott #media #entertainment #advertising #marketing #gaming #digital #content #q2 #earnings
Netflix Q2 subscribers & revenue jump as streamer doubles down on burgeoning ads business
thedrum.com
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A new chapter for Prime Video begins Jan 29 - introducing ads! 🎥 Learn more about the advertising potential of this change in our quick recap. ➡️ https://buff.ly/4aOzaDQ #DigitalMarketing #DigitalAdvertising #Marketing #Advertising #CTV #Streaming #Amazon
What an Amazon Prime Ad Tier Means for CTV Inventory
https://kortx.io
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Following the debut of Amazon’s ad-supported Prime Video service this week, a new analysis from advisory firm Omdia reveals the streaming platform is set to generate more than $2bn in incremental ad revenue in 2024, its launch year... Read More At:- https://lnkd.in/gcYvnFgh Prime Video & Amazon Studios #omdia #streaming #platform #amazon #news #newsfeed #dailynews #newsupdate #ibwnews
Prime Video to generate $2bn+ incremental ad revenue: Omdia
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Ad-supported streaming made a big splash at the 2024 Upfronts. Here's a roundup of our biggest takeaways: 👥 Half of new sign-ups for Netflix, Warner Bros. Discovery's Max, and Disney Streaming's Disney+ opted for ad-supported plans. ⬆ Linear TV ad spending dropped while streaming ad spend soared by 31% year over year, hitting $8 billion. 📺 Connected TV ad spend surged from $20 billion to nearly $23 billion in 2024. 🙋♂️ Prime Video & Amazon MGM Studios offers a global reach of 200 million monthly viewers, with 115 million in the US alone, while Tubi saw a 59% year-over-year increase, reaching 78 million monthly active users in 2023. 🏈 Major streaming platforms nabbed live sports coverage: Amazon with Thursday Night Football, Netflix with Christmas Day games, and YouTube with the NFL Sunday Ticket. 🏀 Advertisers are eagerly anticipating Venu Sports, a forthcoming sports-centric app developed through a collaboration between Disney, WBD, and Fox. 🥇 The 2024 Paris Summer Olympics will be covered on Peacock and NBCUniversal, already fetching $1.2 billion in advertising as of April. image source: Amazon Ads
Ad-Supported Streaming Took Victory Lap at TV Upfronts 2024
thewrap.com
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