Amazon introduces Guaranteed Deals for Prime Video Ads

On August 1, 2024, Amazon announced the introduction of programmatic guaranteed (PG) deals for Prime Video advertising. This new feature enables self-service advertisers to run guaranteed delivery campaigns on Prime Video inventory, marking a significant addition to the platform's advertising options. While fixed-CPM pricing was already available through preferred deals, introducing guaranteed delivery represents Amazon's response to industry demand for more predictable ad placement on streaming platforms.

According to Amazon's announcement, the new PG deals offer advertisers three primary options to align their campaigns with Prime Video content or to reach specific Amazon audiences. The first option is Run of Service (ROS) Deals, which allow ads to serve across all available ad-supported Prime Video content. This broad approach gives advertisers maximum reach across the platform's diverse viewership.

The second option introduces Contextual Deals, a targeted approach that allows advertisers to serve ads on content that is contextually relevant to their campaigns. This option is further divided into three subcategories. Advertisers can target curated title groups, such as "Best of TV Shows," "Best of Movies," or "Best of Prime Video Originals." Additionally, they can focus on content based on specific genres, including Comedy, Action, Drama, Suspense, Sports, Unscripted, Anime, Documentary, Historical, Horror, Fantasy, Romance, and Sci-Fi. The third subcategory allows targeting based on content age ratings, although Amazon notes that availability and details may vary by country.

The third main option is Audience-Based Deals, which enables advertisers to serve their campaigns to desired Amazon audience segments. These segments are pre-defined and include demographic, in-market, interest, lifestyle, and life event audiences. This granular targeting capability allows advertisers to reach highly specific viewer groups, potentially increasing the efficiency and effectiveness of their campaigns.

One notable technical feature of the new PG deals is the ability for advertisers to run campaigns that serve only on pre-roll placements. This option gives advertisers more control over when and how their ads are displayed, potentially leading to better viewer engagement and less disruption to the viewing experience.

The introduction of PG deals for Prime Video builds upon the existing system of preferred deals. While advertisers could previously secure fixed-CPM pricing through preferred deals, the new PG deals add the crucial element of guaranteed delivery. This addition brings Prime Video advertising more in line with traditional TV buying models and offers advertisers a higher level of certainty in their ad placements and reach.

Amazon's decision to launch PG deals for Prime Video comes at a time when the streaming advertising market is becoming increasingly competitive. With major players like Netflix and Disney+ introducing ad-supported tiers, Amazon's move can be seen as an effort to maintain its attractiveness to advertisers and potentially increase its share of the digital advertising market.

The new feature is currently available in several key markets across North America and Europe. In North America, advertisers can access PG deals in the United States, Canada, and Mexico. In Europe, the feature is available in Germany, Spain, France, Italy, the United Kingdom, and Austria. This wide geographic availability suggests that Amazon is confident in the appeal of this new advertising option and is ready to roll it out at scale.

It's important to note that the PG deals are currently only available to self-service advertisers. This limitation may be due to the need for advertisers to have a certain level of familiarity with Amazon's advertising platforms and processes. Self-service advertisers can access the new PG deals through the Amazon DSP (Demand-Side Platform) via campaign deal creation.

The introduction of PG deals for Prime Video could have significant implications for both advertisers and viewers. For advertisers, the guaranteed delivery aspect of these deals provides more predictability in campaign planning and execution. The ability to ensure ad placement within specific content categories or to reach particular audience segments could lead to more strategic and efficient advertising campaigns.

For viewers, the impact may be more subtle but still significant. The increased targeting capabilities and guaranteed delivery of ads could result in a more consistent advertising experience. However, it remains to be seen how viewers will respond to potentially more frequent or targeted advertising within their streaming experience.

From a technical standpoint, the implementation of PG deals requires sophisticated ad serving and inventory management technology. Amazon's ability to offer guaranteed delivery across its vast library of content, while also providing contextual and audience-based targeting, demonstrates the company's advanced capabilities in programmatic advertising.

The move also highlights the growing importance of first-party data in the advertising industry. As third-party cookies are phased out and privacy regulations become stricter, platforms like Amazon that have direct relationships with users and vast amounts of first-party data are likely to become increasingly attractive to advertisers.

As the digital advertising landscape continues to evolve, Amazon's launch of PG deals for Prime Video represents a significant development in the streaming advertising space. It reflects the ongoing convergence of traditional TV advertising models with the more data-driven, targeted approach of digital advertising, while providing advertisers with additional assurances in how they engage with the platform.

Key facts about Amazon's launch of Programmatic Guaranteed Deals for Prime Video

Announced on August 1, 2024

Enables guaranteed delivery campaigns on Prime Video

Builds upon existing fixed-CPM pricing available through preferred deals

Offers three main options: Run of Service Deals, Contextual Deals, and Audience-Based Deals

Allows targeting of specific content categories and audience segments

Available in select markets across North America and Europe

Currently limited to self-service advertisers

Accessible through Amazon DSP via campaign deal creation

Provides advertisers with more certainty in ad placement and reach

Aligns Prime Video advertising more closely with traditional TV buying models

Potentially offers new strategies for advertising efficiency and audience targeting