NEW YORK — Amazon on Tuesday (May 14) made a big splash with its first-ever event during upfront week, a series of confabs where media and tech companies make their advertising pitches to brands and agencies. Amazon's shift from a digitally focused NewFronts presentation to one at the upfronts is the latest sign of how it envisions its growing video-focused ad offerings.
For its debut, Amazon took over Pier 36 in New York, a hangar-meets-high school gymnasium bathed in neon blue light that has hosted previous upfront presentations by Disney and TelevisaUnivision. Hundreds of attendees lined up to access the Lower East Side venue, where they would find interactive stations based on Prime Video properties, passed appetizers and swag bags.
Proving it could deliver the same Hollywood wattage as traditional media conglomerates like Disney and NBCUniversal, the company called on A-listers including Jake Gyllenhaal, Reese Witherspoon and Will Ferrell — plus an opening performance by Alicia Keys — to demonstrate just how premium their slate of content is.
But while the event shared the bells and whistles of usual upfront presentations, Amazon quickly worked to separate itself from its competitors, namely through its scale. Prime Video now has an average monthly ad-supported reach of 200 million global customers (with 115 million in the U.S.), making it the largest premium ad-supported streaming service both globally and in the U.S. — marks that represent "day one" for the newly ad-supported service, said Mike Hopkins, senior vice president and head of Prime Video and Amazon MGM Studios.
"We've been building Prime Video into a one-stop entertainment destination, the first place people go to find the programming they love, and now with your partnership, we're building a one stop advertising destination, as well," Hopkins said at the event.
Full-funnel for everyone
Amazon executives frequently returned to the theme of scale, highlighting not just the quantity of viewers but their quality for advertisers. Many don't watch other streaming services or linear TV, and they're generally younger, more engaged and shop more. Prime Video’s average unique audience compared to other streaming services is 47%, and the platform drives 56% incremental lift among adults 18 to 49 compared to linear TV. The company also focused on the way its advertising offerings differ from those by traditional media conglomerates.
"This week, you're gonna hear lots of presentations, and everyone's going to talk about their reach, their audience insights [and] measurement capabilities, and of course, their content," said Tanner Elton, vice president of U.S. ad sales for Amazon Ads. "Here's the critical difference: We're not just an entertainment company trying to monetize our shows with the latest ad tech or third-party audience signals."
For Amazon, sponsored product ads on its flagship e-commerce site are still the primary driver of growth in a segment that increased 24% year-over-year to $11.82 billion in Q1. But with its scale and growing variety of content channels, it can use its first-party signal and measurement capabilities to make all marketers "endemic to Amazon," according to Sarah Iooss, director of U.S. agency development and Twitch for Amazon Ads.
But it was the January addition of ads to Prime Video that "connected the dots" across the Amazon universe, according to closing remarks by Alan Moss, vice president of global ad sales for Amazon Ads. All together, Amazon sees its offering as full-funnel advertising, at scale, for every brand.
"It no longer matters whether you sell on Amazon or not," Moss said. "With our clean room and other leading ad tech, we can help all advertisers connect awareness and brand objectives directly to sales outcomes and category growth."
Content still rules everything
Upfronts were traditionally used by TV networks to unveil their fall programming slates, but as streaming has upended the model for TV and film, the presentations have followed. As with its competitors, Amazon has looked to tap into intellectual property and deliver content that is familiar for consumers who increasingly crave the comfort of nostalgic favorites.
Amazon MGM Studios confirmed that it developing a sequel to this year's "Road House" reboot, MGM+ and Prime Video ordered a live-action series based on "Spider-Man Noir" starring Nicolas Cage (who voiced the character in the popular "Spider-verse" movies) and Prime Video ordered both a series based on iconic video game "Tomb Raider" and a prequel series to "Legally Blonde" called "Elle" from Reese Witherspoon's Hello Sunshine company. Witherspoon will also star alongside Will Ferrell in comedy film "You’re Cordially Invited" for Prime Video.
"Thursday Night Football" continues to be the jewel of Amazon’s sports offerings. The NFL games in 2023 saw weekly viewership gains en route to a full-season average that increased 24% year-over-year. Prime Videos' slate this year includes the regular season opener between the Buffalo Bills and Miami Dolphins and the platform's first NFL Wild Card Playoff game.
In addition, Amazon Music will continue to broadcast Amazon Music Live, a series of livestreamed concerts that air after its Thursday Night Football broadcasts that have seen 313% year-over-year viewership growth. Likewise, Amazon Ads will launch The Glitch, brand-customized, playable worlds distributed in Fortnite that are built for the gaming communities on its Twitch service.
Along with creating original TV and films on Prime Video, Amazon has continued to license content for the platform, in addition to building out more than 500 free ad-supported TV (FAST) channels, partnering with 135 other services, expanding its sports programming and remaining the largest seller of movies to rent or buy. Plus, the company last week announced three new streaming TV ad formats that boost interactivity and shoppability on Prime Video — key offerings for advertisers seeking a convergence of connected TV and retail media.
“No other streaming service can reach the number of customers with premium entertainment that we can," Hopkins said. "And our audience is not just a number on a page. They're highly engaged viewers who are passionate about the deep and broad selection of programming we deliver including live sports, series and films.”
