Amazon attracts advertising investment to Prime Video in UK. The biggest strength is the user scale of 19 million people | DIGIDAY[Japanese version]

Article points

• The number of Amazon Prime Video users has exceeded 19 million, and the reach of advertisers has also expanded.

• See how Prime Video advertising campaigns have successfully increased brand awareness and sales.

• Aiming to become the king of the streaming service world by diversifying content and strengthening DSP.

There was little doubt anymore, but a new pitch to UK advertisers has revealed Amazon’s intentions. The company is trying to attract advertising dollars to Prime Video, and this policy is unlikely to change for some time.

These messages were made clear during a presentation at Upfront held on the evening of October 2nd. Amazon is hereFocused on Prime Video and pushed it to the forefrontNoda.

Prime Video Strengths

Amazon for the first time everViewers of Prime Video’s ad-supported plan exceeded 19 million people.It reported that advertisers can now reach more than a third of the UK’s adult population. According to the latest data from research agency Barb, Netflix has over 7 million subscribers in the UK and Disney+ has 820,000 subscribers, making Amazon far ahead of its rivals. There is.

It’s clear that Amazon’s exclusive user numbers were at the heart of the company’s pitch, offering a kind of validation for how it has grown Prime Video’s ad-supported plans over the past nine months. That was an impression.

While Netflix requires opt-in subscriptions to ad-supported plans, Amazon requires users to subscribe to ad-supported plans by default, and users who wish to watch without ads must opt ​​out.

This effectivelyAds are the basis of the Prime Video viewing experience.which maintains high revenue per viewer without offering a cheaper ad-supported version of the streaming service. And by charging higher prices to viewers who want to avoid ads, Amazon is increasing its average revenue from these users. However, the majority of Prime Video users are now highly monetized, and Amazon is intent on maximizing revenue per viewer.

Amazon executives took this upfront as an opportunity to reemphasize the strengths of their services. He says,More than half (52%) of UK Prime Video viewers don’t watch paid linear TV. They also spend 36% more on Amazon.co.uk than the average user, offering global favorites, local hits, award-winning Amazon Originals, and live sports. He says he is attracted to a variety of content, such as:

Phil Christer, UK managing director of Amazon Ads, the company’s advertising arm, explored this point in a presentation to Upfront. “By combining award-winning TV series and movies, billions of first-party signals, and cutting-edge ad tech, we are helping brands deliver tailored advertising experiences at unprecedented scale. “to make it possible.”

Examples of successful advertising campaigns

As a case in point, Christer pointed to a recent campaign by toy maker Hasbro.

The company hopes to reach customers at multiple stages of the customer journey, and marketers are using Prime Video ads to increase brand awareness and increase sales for Peppa Pig toys. , worked on customer expansion. Leveraging Amazon data, Hasbro ran a six-week campaign that combined Prime Video advertising and bottom-of-funnel sponsored brand placement. As a result,Brand searches increased by 21% year-on-year, and Peppa Pig product sales increased by 17%.. Of this amount, 8% were from new HasPro customers.

He went on to cite the success of skincare brand Nivea. The company also ran a Prime Video ad campaign and measured its effectiveness through an independent vendor. As a result, Prime Video advertisingGenerated more than 50% higher interest compared to linear and on-demand TV standards。

Whether it’s increasing awareness of toys or driving engagement with skin care, Amazon’s message is clear.Amazon’s ecosystem, powered by advertising revenue, can produce results that cannot be achieved with traditional television.That is what it means.

Still, the success stories of a few companies like Hasbro won’t be enough to propel Amazon’s advertising business to the next level.

In order to acquire more advertisers,Amazon will start operating new ad formats in 2025It’s scheduled. Interactive video ads that allow users to add products directly to their cart with remote clicks, interactive pause ads that drive brand engagement every time they pause their viewing, and Shoppers that allow users to instantly browse and purchase multiple products while viewing an ad on Prime Video. Bull carousel advertisements, etc.

Compete with content

but,Content is the true core of Amazon’s advertising growth strategyIt’s in Content drives subscriber growth and maintains the interest that advertisers pay for at high levels.

That’s why Prime Video and Amazon MGM Studios executives pulled out all the stops at Upfront, showing off their lineup of upcoming TV series and movies and giving attendees a preview of The Lord of the Rings: Power They even held an exclusive preview of the final episode of “The Ring”. The show’s second season has already attracted 50 million viewers, with the UK one of the top markets driving global viewership.

Amazon’s offensive doesn’t end there.

After actress Priyanka Chopra-Jonas introduced the second season of “Citadel,” actor Idris Elba also took to the stage to promote his new action-comedy movie “Heads of State,” in which the two co-star. . Additionally, Orlando Bloom, Nick Mohammed, and Bryce Dallas Howard jumped in to talk about their new British action-comedy film Deep Cover. Director Guy Ritchie even made an appearance to talk about “Young Sherlock,” which is the origin story of the famous detective and is currently being filmed in the UK.

All in all, this could be seen as the company’s strong response to critics who have accused Amazon of cutting corners on quality, especially when compared to the highly acclaimed Apple TV productions and social phenomenon Netflix productions. However, Amazon does not stop there, expanding its reach into sports, music, and gaming fields.Aiming even higher than the top of the traditional streaming service worldHe showed his attitude.

Alex Glenn, Managing Director of International Sports at Prime Video, noted that Amazon has acquired exclusive rights to broadcast the UEFA Champions League, considered the pinnacle of soccer, in the UK and Ireland. . On the music front, Amazon hosts live performances from stars like Kendrick Lamar, The 1975, Taylor Swift, and Megan The Stallion, as well as its own livestreaming series City Sessions, which features intimate performances by up-and-coming artists. Broadcast live.

Amazon’s revamped ad tech

While Amazon is focusing on advertising opportunities for premium content using its own formats,Marketers at companies that don’t sell products on Amazon can also take advantage of Amazon’s ad tech and reach.I also touched on the point. No matter where you sell your products, Amazon advertising can help you achieve results.

Amazon’s ad tech pitch this year emphasized these aspects, particularlyPitching the revamped DSPwas noticeable. The DSP upgrade is aimed at bridging the gap between data-driven advertising within Amazon’s walled garden and what can be done beyond it.

“Through a simple redesign of Amazon DSP, advertisers can create and manage campaigns faster, optimize presentation frequency more efficiently, and gain more sophisticated insights,” said Amazon’s European Advertising Director. Pierce Heaton-Armstrong, vice president, said. “Amazon DSP is our gateway to integrating our and our clients’ signals, streamlining media buys, and reaching people where they spend their time.”

He used a recent campaign for luxury kitchenware brand SharkNinja to illustrate the platform’s power.

Shark Ninja includes Prime Video Ads for awareness, DSP Display and Online Video for engagement, and Sponsored Ads for mid-to-low funnel conversions.Build a full-funnel media strategydid. The entire strategy was integrated through Amazon Marketing Cloud, a data clean room for measurement and remarketing.

The results were certain. Users who watched a Prime Video ad were 20% more likely to add a Shark Ninja product to their cart within 10 days, and 20% more likely to complete a purchase. Additionally, users who saw all elements of a campaign were 40% more likely to make a purchase.

“Through Amazon DSP, clean rooms, and other cutting-edge ad tech, weWe can help all advertisers connect their brand awareness and brand building goals directly to sales and category growth results.. Deliver full-funnel advertising at scale to all of your clients.”

A few weeks before this pitch, Amazon completed its upfront in the US.Received commitments to place more than $1.8 billion (approximately 267 billion yen) in advertising on video streaming services including Prime VideoandThe Informationis telling.

[original:[original:With 19 million viewers in its ad tier, Amazon makes a case for Prime Video’s ad business in the U.K.］

Seb Joseph (translator: Tomoyuki Matoba/Galileo, editor: Satoshi Tsuzuki)