Kelly Day, vice president of Amazon Prime Video’s international market, revealed in an interview with the Financial Times that the company plans to offer advertisers more advertising space starting in 2025.
Amazon to increase number of advertisements on Prime Video
https://www.ft.com/content/f8112991-820c-4e09-bcf4-23b5e0f190a5
Amazon will “ramp up” Prime Video ads in 2025
https://arstechnica.com/gadgets/2024/10/amazon-prime-video-is-getting-more-ads-next-year/
From January 2024 on Amazon Prime Video,Regions such as the United States, Canada, and the United KingdomAdvertisements are now displayed.
Advertisements start being distributed on Amazon Prime Video, what is the length of the advertisements and Amazon’s profit prospects? -GIGAZINE
When the advertisement was added, overseas media The Wall Street JournalinvestigationAs a result of this change, Amazon Prime Video users now watch ads for an average of 2 to 3 and a half minutes per hour. However, the introduction of advertising did not cause the sharp decline in subscribers that Amazon Prime Video executives had feared.
Commenting on automatically switching to a plan that shows ads unless you pay an additional fee, Day, vice president of Amazon Prime Video, said, “I know it was a bit of a contrarian approach, but it was an unexpected move.” It worked, we had far fewer cancellations than we expected, and we didn’t see any signs of a spike in withdrawals or cancellations,” he told the Financial Times.
Day declined to say how many people paid extra for ad-free plans, but said it was lower than the 20% some analysts expected.
Because users are accepting ads, Amazon feels that it is responding to the addition of ad space, and Mr. Day said, “The advertising load will increase a little bit towards 2025.”
Day also confirmed that “shoppable ads” will be added to Amazon Prime Video starting in 2025. Shoppable advertisements include those that display product advertisements while the video is paused and allow you to perform actions such as “Add to Cart,” and those that display brand promotion while the video is playing and allow you to purchase from there. Contains.
Amazon Prime Video will soon start displaying ads for Amazon products while paused – GIGAZINE
Advertising is a highly profitable field for Amazon, and the revenue of the digital advertising business in the second quarter of 2024 has increased by 20% from the previous year to $ 12.8 billion (approximately 1.884 trillion yen). It is reported that the unit price of advertising is lower than that of its competitor Netflix, but the fact that it was able to quickly force most of its subscribers to subscribe to ad-supported plans is an advantage in appealing to advertisers. We decided to give Amazon the gender.
Ars Technica, an IT news site that covered this matter, said, “As long as users continue to pay for ad subscriptions, streaming services will continue to explore how far they can use their viewers to generate advertising revenue.Amazon. If they increase the amount of advertising displayed in 2025, users will be more likely to test how much they can tolerate advertising.”
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