BEIJING, Oct. 18 (Xinhua) — With Amazon planning to place ads on its Prime Video video streaming service early next year, company executives are now asking advertisers to commit to investing a lot of money in the service.
The demands are said to be more aggressive than those made by Netflix when it launched its ads last year. Advertising executives say this shows Amazon’s confidence in Prime Video’s advertising prospects.
Image source Pixabay
One of the advertising executives said that in a meeting with a major global ad agency, Amazon executives asked for an initial commitment of more than $100 million in advertising by 2024.
And another executive said that in a meeting with a smaller ad agency, Amazon asked for more than $50 million in placement commitments.
Both advertising executives said Amazon’s demands were very high. One of them noted that the size of the placement Amazon is asking for is what their company now spends annually on Hulu. Hulu is the largest subscription streaming service in the U.S. based on ad sales.
Last month, Amazon sent a briefing document to advertisers saying it would launch Prime Video ads in 2024. Amazon said at the time that it would be the first to add ads to Prime Video programs and movies in the U.S., U.K., Canada and Germany, with a rollout later next year in France, Spain, Italy, Mexico and Australia.
Amazon didn’t release its subscriber numbers in the filing, but said it is now the third-largest streaming platform in the U.S. behind YouTube and Netflix.
Prime Video ads will reach more than 115 million monthly U.S. subscribers, but subscribers will also have the option to pay an additional $2.99 per month to waive the ads.
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