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Amazon enables zip code-level ad targeting for Prime Video

Amazon's location-based interactive ads let advertisers customize national TV commercials with local pricing and details across thousands of zip codes.

Luis Rijo

• 8 min read
Amazon enables zip code-level ad targeting for Prime Video

Amazon Ads announced location-based interactive video ads for Prime Video on October 31, 2025. The feature enables advertisers to transform national TV commercials into thousands of location-specific variants without creating multiple creative assets. Advertisers can customize messaging with local pricing, dealership information, or agent details while adjusting clickthrough URLs based on viewer location.

The system operates at both zip code and state levels through the Amazon DSP Video template. National advertisers can create thousands of variations based on zip codes or tens of variations by state, addressing a longstanding challenge in television advertising where national campaigns struggled to communicate local value propositions effectively. Implementation requires advertisers to use first-party ad server (1PAS) video creatives.

According to the launch announcement, the solution enhances creative efficiency while delivering more relevant viewing experiences for Prime Video audiences. The targeting capability bridges the gap between national campaign reach and local market relevance, particularly benefiting industries where location-specific information drives purchase decisions.

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Amazon restricted access to advertisers who have opted into limitations on demographic signals through the "Additional Restrictions: Only use Amazon audiences without demographic signals" checkbox in Advertiser settings. Both managed service and self-service advertisers using Amazon DSP can utilize the feature, which launched exclusively in the United States.

The technical architecture builds on Amazon's expanding geographic targeting infrastructure. Amazon launched Geographic Insights and Activation on June 23, 2025, providing first-party retail signals to identify high-potential geographic areas. That feature revealed 78% of marketers cite localized personalization as critical to campaign success, yet only 43% feel equipped with appropriate tools to act on geographic insights.

Amazon consolidated region and location targeting interfaces in May 2024, simplifying the line item settings page for self-service advertisers. The streamlined experience eliminated confusion between broad region targeting and granular location options like cities, postal codes, or Designated Market Areas.

The location-based interactive ads represent Amazon's continued expansion of Prime Video advertising capabilities. Prime Video launched with advertising in January 2024 across the United States, reaching an estimated 115 million monthly viewers at launch. The platform subsequently expanded to the United Kingdom, Canada, Germany, and Austria in February 2024, with France, Italy, Spain, Mexico, and Australia following later in 2024.

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Amazon introduced programmatic guaranteed deals for Prime Video on August 1, 2024, offering assured inventory delivery for self-service advertisers. The guaranteed delivery model provides three primary options: Run of Service deals across all ad-supported content, Contextual Deals targeting specific genres or title groups, and Audience-Based Deals serving campaigns to predefined Amazon audience segments.

Interactive video formats arrived on Prime Video in May 2024. Amazon unveiled interactive and shoppable ad formatsincluding pause ads, brand trivia ads, and remote-activated shopping capabilities. Research from Amazon Ads indicated a 10x increase in product page views and conversions for brands using interactive formats compared to traditional streaming television advertisements.

The German market demonstrated Prime Video's advertising scale when Amazon held its first German upfront event on June 4, 2025. The company disclosed Prime Video maintains an average monthly ad-supported reach exceeding 17 million customers in Germany, with 95% of those viewers making Amazon purchases within the previous three months. Those viewers spend 75% more than average Amazon customers.

Measurement capabilities have expanded alongside targeting features. Amazon integrated Prime Video into Germany's AGF measurement system starting November 2025, marking the first time a Joint Industry Committee worldwide incorporated an international streaming service using server-to-server technology. The integration enables reporting at title and format levels through Nielsen's technical solution.

Amazon Marketing Cloud launched Prime Video viewership signals on November 11, 2025, providing content engagement data across the United States, Canada, Japan, and Australia. The integration introduces content title information, content type classification, and show-level engagement metrics within AMC's analytics platform. Additional markets including the United Kingdom, Germany, Spain, Italy, and France receive access during the first quarter of 2026.

The location-based targeting builds on Amazon DSP's expanding geographic optimization tools. Amazon released a Geographic Insights and Activation API in beta, providing programmatic control over location-based bid adjustments at the postal code level. The API operates through a versioned location index structure, allowing advertisers to update geographic strategies as market conditions change without creating entirely new indexes.

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Bid adjustment multipliers in the API use decimal values representing percentage increases or decreases from base bids. A value of 2.0 represents a 100% increase in bid amount, while 0.2 represents an 80% decrease. The mathematical approach provides precise control but requires advertisers to calculate appropriate adjustment levels based on cost per acquisition targets and campaign economics.

Prime Video's advertising business operates within Amazon's broader advertising ecosystem, which reached $15.7 billion in revenue during the second quarter of 2025, representing 22% year-over-year growth. The advertising segment significantly outpaced Amazon's overall 12% sales growth during the same period. Amazon operates at a $69 billion annual advertising revenue run rate as of the fourth quarter of 2024, more than doubling from $29 billion four years earlier.

Prime Video's ad-supported tier contributed to industry-wide streaming cost reductions following its January 2024 launch. MoffettNathanson estimates indicated Prime Video could contribute over 50 billion impressions to the connected TV market in 2024, dwarfing smaller streaming platforms. Mark Douglas, CEO at MNTN, stated at the Cannes Lions advertising event that Amazon's entry drove CPM reductions across competing platforms through aggressive pricing strategies.

Connected TV advertising spending is projected to reach $33.35 billion in 2025, according to EMARKETER's November forecast. The streaming advertising market has experienced substantial growth as platforms compete on pricing, targeting capabilities, and ad format innovations. Recent Nielsen research shows 77% of Germans use video streaming services weekly, representing a seven percentage point year-over-year increase.

The location-based interactive ads address specific use cases for national brands with local operations. Automotive manufacturers can display nearest dealership information alongside vehicle advertisements. Insurance companies can show local agent contact details. Retailers can present regionally specific pricing or promotional offers. Real estate platforms can highlight properties in viewers' geographic areas. The customization occurs programmatically based on viewer location without requiring separate creative production for each market.

Technical implementation requires advertisers to structure campaigns through Amazon DSP's Video template interface. The system processes location data from Prime Video viewer profiles to serve appropriate variants of the base creative asset. Clickthrough URLs can direct viewers to location-specific landing pages, enabling seamless transitions from streaming content to localized web experiences.

The feature represents a technical advancement in addressable television advertising, historically limited by broadcast infrastructure constraints. Traditional linear television required different creative assets for different markets or relied on cable system boundaries for local ad insertion. Streaming infrastructure enables more granular targeting while maintaining the premium viewing environment of long-form video content.

Amazon's approach combines first-party retail data, streaming viewership information, and geographic signals to create targeting capabilities unavailable through traditional television or competing streaming platforms. The company's e-commerce infrastructure provides shopping behavior insights that inform advertising strategies across Prime Video inventory.

Amazon launched an AI agent for automated campaign management on November 11, 2025, introducing natural language controls for Amazon DSP campaigns. The Ads Agent processes instructions to create campaign structures, recommend targeting options, and optimize campaign pacing across hundreds of active line items. The automation addresses operational challenges facing advertisers managing campaigns at scale across Amazon's expanding advertising inventory.

The location-based interactive ads availability remains limited to the United States at launch. Amazon has not announced expansion timelines for international markets where Prime Video operates with advertising support. Geographic targeting capabilities vary by market based on data availability, regulatory requirements, and technical infrastructure maturity.

Timeline

Summary

Who: Amazon Ads launched the feature for managed service and self-service advertisers using Amazon DSP, excluding advertisers who opted into restrictions on demographic signals. The capability targets national brands with local operations including automotive manufacturers, insurance companies, retailers, and real estate platforms.

What: Location-based interactive video ads enable advertisers to customize national TV commercials with zip code or state-level variations. The system allows thousands of creative variants from a single asset, incorporating local pricing, dealership information, or agent details with customizable clickthrough URLs through the Amazon DSP Video template.

When: Amazon announced the feature on October 31, 2025, with immediate availability for eligible advertisers. The launch follows geographic targeting infrastructure improvements throughout 2024 and 2025 including streamlined location targeting in May 2024 and Geographic Insights and Activation in June 2025.

Where: The feature operates exclusively in the United States at launch, serving advertisements across Prime Video's ad-supported streaming inventory. Amazon DSP manages the location-based targeting through its programmatic advertising platform, processing viewer location data to serve appropriate creative variants.

Why: The feature addresses challenges faced by national advertisers investing in television advertising but struggling to communicate local value propositions effectively. Location-based targeting enhances creative efficiency by eliminating the need for multiple asset production while delivering more relevant viewing experiences. The capability bridges the gap between national campaign reach and local market relevance, particularly important as advertisers seek to optimize streaming television investments within Amazon's expanding connected TV advertising ecosystem.