Amazon OTT Advertising : The Ultimate Guide (2023)

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The popularity of OTT (over-the-top) platforms can’t be neglected these days. With millions of viewers subscribing to various streaming services, it’s one of the fastest-growing internet communities in the last decade. No wonder ott platforms have become prime spots for advertising. 

Today we are discussing Amazon OTT advertising, a service by Amazon where merchants can display video advertisements before, during, or after the content on Amazon streaming platforms.

Amazon OTT

This article will explore the benefits of Amazon OTT advertising compared to traditional advertising methods. We will also discuss the prospects of OTT advertising in the coming years. 

OTT Advertising Simplified

OTT, or “over-the-top,” refers to the delivery of streaming media content, such as TV shows and movies, directly to viewers via the internet, without the need for a traditional cable or satellite service provider. It allows viewers to watch their preferred content on a variety of devices, such as smart TVs, smartphones, and tablets.

Streaming services have become increasingly popular, particularly among youth who are totally dependent on the internet for entertainment. Also, media consumption through OTT is easier due to easy access on multiple mobile devices. It is estimated that around 60% of adults now use video streaming services as their primary means of consuming media.

OTT ads can be found on various popular streaming services, music apps, streaming devices, gaming consoles, and smart TVs. Some platforms provide a premium service for a higher price, which enables viewers to remove ads, whereas, on other platforms, the ads are an integral part of the streaming experience and cannot be removed.

The increasing usage of OTT platforms, particularly among the younger demographic, makes it a wise choice for advertisers to use these platforms to connect with their desired audience. Additionally, by utilizing machine learning and first-party data, brands can optimize their OTT ads to be even more effective in reaching their target audience.

Amazon OTT Advertising: How Does It Work?

In early 2019, Amazon introduced its OTT advertising service, capitalizing on the growing trend of video streaming services. It’s a part of Amazon DSP (Demand Side Platform) that allows brands to buy video ads from a variety of sources, including Amazon, IMDb, third-party websites, and apps. 

Amazon OTT Advertising

The platform supports a wide range of ad formats, including audio, video, and display, which enables advertisers to connect to customers across devices, including desktop, mobile, and connected TV, gaming consoles, etc. 

One of the benefits of Amazon OTT advertising is that brands can utilize Amazon’s DSP data and machine learning to target specific audiences and optimize their ad campaigns in real time. Additionally, brands can also access first-party data and audience segments to target the desired viewers and improve the performance of their campaigns.

Amazon OTT advertising allows for targeting specific audiences, unlike traditional TV ads. However, it is important to note that these ads are not clickable, unlike Amazon PPC ads, and are designed to create positive brand impressions in viewers’ minds rather than direct conversions. Therefore, unlike sponsored ad campaigns, OTT ads are not paid based on clicks, but rather on the number of impressions they receive.

Amazon OTT Ads: What’s New?

Amazon continues to improve its OTT advertising by introducing new features and tools to enhance the experience for both viewers and advertisers. The company’s recent updates from last year aimed to provide more opportunities for brands to build their presence on the platform. Here are a few of those:

1. The genre-blocking feature on Amazon OTT allows advertisers to select specific content categories where they do not want their ads to appear, enabling more targeted and effective ad campaigns. This feature allows advertisers to block up to five genres, allowing them to reach their desired audience more accurately.

2. Amazon now allows brands to create their own video ads from scratch using an in-built video creator tool. Advertisers also get access to a video library with templates that can be used as inspiration for creating unique video ads.

3. As Amazon continues to expand its streaming offerings, such as through Amazon Prime Video, IMDb Tv, and NFL, brands have more opportunities to reach audiences through targeted advertising. With a wider variety of content available, advertisers can better target specific audiences and optimize their ad campaigns.

4. Lastly, The Audience Guarantee feature allows you to purchase video ads that will reach your desired target audience. The payment is based on the number of relevant impressions received.

Advantages of Amazon OTT Advertisement

The question at hand is whether or not Amazon OTT ads are cost-effective and beneficial. We will now briefly examine some of the advantages of using Amazon OTT advertising.

1. Precise Audience Targeting

With Amazon OTT advertising you can precisely target the audience which is not possible with traditional TV commercials. By utilizing Amazon’s Demand-Side Platform, you can gain valuable insights into your audience and their online behaviors and presence, such as their product interests and demographics.

With this information, you can create ads that are tailored to specific audiences, increasing the likelihood of engagement and ultimately leading to more product sales. Additionally, by using Amazon OTT, you can leverage the impact of visual formats while also utilizing the advanced targeting capabilities offered by Amazon DSP.

2. More Economical than TV advertisements

It’s not a secret anymore that the viewership of conventional television has declined dramatically in the last ten years. And to cover the cost, the media houses have increased the cost of ads. On the other hand, OTT is still in the development phase, and it’s relatively cheaper to put video ads on streaming platforms. 

When it comes to Amazon OTT ads, advertising costs are more manageable and allow for greater control over the ad costs. Also, you can selectively target the audience and track the campaign’s progress. 

3. Better Competitive Advertising

You can create a more effective competitive ad campaign using Amazon OTT advertising. The data from Amazon’s DSP allows you to track down your competitor’s ads being watched by viewers and direct your ads toward the same audience. It gives you the opportunity to capture potential customers who are interested in your competitors’ products. This feature is unique to Amazon OTT advertising and can help you acquire potential customers who are interested in your competitors’ products.

4. Reach an Inaccessible Audience

Reach Customer - Amazon OTT Advertising

Amazon OTT ads provide an alternative way to reach a hard-to-reach audience. With the rise of ad-blockers and browsers with built-in ad-blocking capabilities, it can be difficult to reach viewers with traditional web-based video ads. Amazon OTT ads, however, are not affected by these types of programs and allow you to target a diverse range of viewers, including those who have switched from traditional television to streaming services.

Related Read:

Reach Millions of Streaming Audience Through Amazon OTT Ads

OTT platforms, like Amazon’s, offer a new and untapped market for advertisers to reach their target audience through visual content. As viewership of traditional television continues to decline, internet-based streaming services are becoming the go-to source for visual content consumption. Advertising on these platforms provides opportunities for brands to reach a wider audience and create more effective campaigns. 

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