Amazon wants to make a big splash in 2024

Like Google, Amazon offers advertisers a very complete advertising offer on a dedicated platform: Amazon Ads. There are several formats available and the creation of campaigns allows you to achieve different objectives, including:

  • increase traffic to a website;
  • increase sales of an online store;
  • improve customer loyalty;
  • Strengthen the notoriety of a brand or a company.

Amazon, the first e-commerce site in France and present in the four corners of the world, is now essential for advertisers. More and more consumers use this site to make their purchases for three main reasons:

  • the wide variety of products;
  • prices considered more attractive;
  • Ultra-fast delivery for customers who benefit from the Prime program.

To continue attracting brands and encourage them to advertise on its platform, Amazon regularly develops new offers. The year 2024 is no exception. Therefore, some new features have already been announced, including the arrival of video advertising to Amazon Prime – and revealed on LinkedIn by Andréa Bensaid, founder and CEO of Eskimoz. Here is the information to remember.

What are the new Amazon Ads offers?

To face competition and remain attractive to advertisers, Amazon must renew its paid advertising offer. This allows it to offer new services to brands and companies, and take advantage of new technologies to innovate or expand its range of advertising solutions. This is the case of 3 new functions, which we will explain to you.

Currently offered in the United States, they should arrive in France soon (in particular Prime Video Ads, which would be available in April 2024).

A partnership with Facebook

The first novelty refers segmentation and retargeting Amazon Ads campaigns. To improve its performance, Amazon chose to partner with Facebook, which belongs to Mark Zuckerberg’s Meta group, which is one of Google’s competitors.

According to the figures announced by Amazon Advertising Informationand shared by Andréa Bensaid, this association would result in:

  • Up to 20% higher conversion rate;
  • a 35% increase in ad engagement;
  • an increase in advertising performance of 25%;
  • an improvement in ad reach by 30%.

In other words, great opportunities for advertisers!

Likewise, this partnership between the two web giants will allow brands to target users with products seen on Amazon and to retargeter in Meta (Facebook, Instagram for example).

Thus, Amazon, which is a marketplace, will benefit from two options (more precise targeting and retargeting) until now reserved for e-commerce sites. And this also applies to advertisers who will create Amazon Ads campaigns.

Video advertising launched on Amazon Prime

In 2024, Amazon has a pleasant surprise in store for advertisers: the integration of video advertising on Prime Video.

As a reminder, this is a video on demand (SVOD) service, which offers its users the opportunity to watch movies, series, television shows, as well as rent and buy them. A service integrated into the Prime program, which includes music (Amazon Music), access to books and magazines (Prime Reading) and online games (Prime Gaming).

The arrival of video advertising is therefore new for Amazon, although it already exists in other paid SVODs, such as Disney+ and Netflix. We’ll provide you with detailed information on this topic in a future paragraph, but remember that this video ad improves:

  • participation rate: +42%;
  • sales: +30% on average;
  • impulse purchases: 35% increase;
  • the notoriety of a brand, of a company: + 55%.

(These figures were provided by Amazon Advertising Blog).

Once again, this new service is very interesting for advertisers, many of whom should try Prime Video Ads as soon as it is available in France.

Display format integration for B to B

The latest addition to Amazon Ads is aimed at a very specific target: B to B brands. The platform now offers them Show ads. A format that combines:

  • of text;
  • images;
  • a call to action;
  • a redirect to a landing page.

More attractive than other formats, Display is more profitable for brands. According to the figures ofAmazon Advertising Success Storieswould allow brands B to B increase:

  • your organic traffic by 40%;
  • its 25% conversion rate;
  • its visibility of 35%;
  • your click-through rate on your ads of 18%.

With this new advertising offer, everyone wins: B to B brands, which benefit from highlighting their ads in the market; Amazon, which monetize your audience.

Thus, little by little, Amazon intends to reshape the contours of online advertising on its platform, and become an important player in advertising for brands and advertisers. Proof of this is its Prime Video Ads offer, which we mentioned above, and which should soon be available in France.

Prime Video ads: what to expect?

Prime Video is Amazon’s video on demand service. It’s free for Prime customers as it’s included in your subscription. But an important change is announced: its monetization with the arrival of advertising videos.

Already available in the United States, these ads will soon arrive in France (normally in spring 2024). Broadcast in movies and series from the Prime Video catalogue, they allow advertisers to reach millions of viewers around the world.

Furthermore, these advertisements are included in Prime subscription existing. For an ad-free experience, subscribers can purchase another, ad-free subscription. In the United States, this formula increases the price of a subscription by approximately €2.99 per month. The cost should be similar in France and Europe (at the moment, Amazon has not provided information on this).

But the arrival of these advertising videos raises some questions: how will French users react? Will you keep your current subscription or choose the ad-free version? Or will they be tired of this excess of advertising? As for advertisers, will they be tempted by this new offer?

If we still don’t have answers to the first questions, we can still indicate that Prime Video Ads presents serious advantages for advertisers, including a very wide audience.

Why advertise on Amazon Prime?

To understand the main advantage of this new advertising offer, we must remember some figures:

  • Amazon matters 17 million Prime subscribersof which 12 million use their SVOD ;
  • The main users of Prime Video are between 18 and 49 years old, and they connect to it from a television (a screen larger than that of a computer) on average 16 times a month.

Additionally, unlike other SVODs that already offer advertising, advertisers using Prime Video Ads have access to amazon data. Very valuable data for ad targeting. Thanks to this data, brands benefit from excellent visibility and can create a direct link between advertising and online sales. An effective way for Amazon to distinguish itself from Netflix and Disney+, its competitors in the SVOD market.

What advertising formats are available?

About his Official site, Amazon Ads details the ad formats offered to advertisers. There are 3 of them and they were created to “guarantee customers the best possible experience”:

  1. the feature rotator : a kind of carousel that appears at the top of the screen without having to scroll through the page (the most visible part in short, which we call in English “above the fold”);
  2. sponsored thumbnails – They are presented in one line and when a user clicks on a thumbnail, the ad content is displayed in the upper half of the screen;
  3. sponsored channels – Appear in the “My Subscriptions” section of Prime Video customers, who can discover new channels with just a few clicks.

Therefore, these 3 formats integrate very well into the Prime Video interface. They do not hinder subscribers’ use of the platform, nor do they restrict their access to series, movies and programs. Furthermore, to avoid advertising clutter (and saturation of Prime subscribers), Amazon plans to broadcast no more than 3 min 30 of advertising per hour.

What are the strengths of Prime Video Ads?

Amazon data and Prime’s large audience are two key elements for advertisers. With Prime Video Ads you will be able to reach more relevant and precise audiences, and thus obtain better results.

But these are not the only advantages. They also benefit from Amazon Prime Engaged Audiences, since the platform allows its users to entertain themselves by watching movies, series and shopping at the same time. Amazon also provides quite revealing figures on the engagement of its audiences in the United States:

Amazon’s video advertising offer also differs from that of Netflix and Disney+ by market experience. Advertising is not new for it, it constitutes an important part of its economic model. A reassuring argument for advertisers.

  • spending by households using Prime Video increases 22% monthly on Amazon;
  • On average, 84% of households that watch series, movies and shows on Prime Video purchased on Amazon.

How much will a Prime Video Ads campaign cost?

Another fundamental question arises with the future launch of Prime Video Ads in France: how much will a campaign cost advertisers?

To date we do not know the official prices. But according to the Emarketerz site, they would be “competitive” compared to their competitors Netflix and Disney+. For example :

  • he 30 seconds CPM it would be between €25 and €32;
  • he entry ticket per campaign It would range between €10,000 and €15,000, with a 15% discount for advertisers using a media agency.

To know in detail the prices and features of Prime Video Ads you will have to wait a few more weeks. However, we are sure of one thing: this Amazon advertising offer marks a new stage in the web giant’s strategy. But will it really change the French and global advertising landscape? Not necessarily. It is rather an additional service for advertisers, complementary to the advertising that Amazon already offers.

While you wait for the availability of Prime Video Ads in France, our agency is ready and supports you in your other advertising campaigns on amazon. Do not hesitate to contact us for more information!

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