Amazon to increase ads on Prime Video; more ad slots available for brands in 2025

Amazon plans to increase the number of advertisements featured in its popular television shows and movies on Prime Video next year, as the tech giant intensifies its efforts in the ad-supported streaming market, Financial Times reported.

As per the report, the company noted that it has not experienced a significant drop in subscribers since introducing ads on its Prime Video platform eight months ago, easing concerns among executives about potential customer backlash. This stability is crucial as Amazon seeks to attract more brands to its streaming service.

Kelly Day, Vice President of Prime Video International, who oversees the global streaming video business, told the Financial Times that there will be more ad slots available for brands in 2025.

Interestingly, Amazon has entered a competitive landscape for ad-supported streaming services. Most of its rivals, including Netflix, Max, Paramount+ and Disney+, have launched ad-supported tiers at lower prices compared to their ad-free subscriptions.

Globally, Amazon claims to have an ad reach of around 200 million, with over half of those viewers located in the US. Furthermore, it automatically transitioned its over 200 million global subscribers to the ad-supported service unless they opted to pay for the premium ad-free version.

She also mentioned that churn, the rate at which customers leave the Prime service, has been significantly lower than expected, with no substantial increase in cancellations.

Amazon's revenues from its digital advertising business rose by 20 per cent to $12.8 billion in the second quarter of 2024 compared to the previous year. Going forward, Amazon plans to introduce interactive and shoppable ad formats on Prime Video, allowing viewers to add items to their cart or learn more about brands simply by clicking their remote or scanning their mobile device, without leaving the show.