In the US, the monthly active consumers of Amazon Prime Video translates to about 115 million. That’s a lot of folks to whom sellers can advertise their products.
Amazon has rolled out Amazon Prime Video ads to display directly on your Amazon Prime streaming device. With a highly engaged audience, this new feature of Amazon ads on Prime Video is your best bet.
“Meaningfully fewer ads than linear TV” is what Amazon is going for, with this new update when compared to its fellow streaming TV platforms.
About 80% of Amazon’s 130.4 million US Prime Video viewers use its ad-supported tier, giving it an advertising audience of approximately 104.3 million.
According to Amazon, campaigns that promote to Prime Video audiences have seen a 10% lift in detail-page-view rate and a 6% lift in add-to-cart rate compared to standard demographic audiences. For a deeper understanding of these results, reviewing Amazon brand lift case studies can provide concrete examples of how Prime Video Ads drive measurable improvements in brand awareness and customer engagement.
For sellers, this opens up a huge opportunity to drive brand awareness, but it requires a strategic approach, proper budgeting, and strong creative execution. Before diving into high-impact formats like Prime Video ads, it’s smart to evaluate your overall ad strategy using an Amazon PPC audit tool. This ensures your campaigns are efficient and not bleeding budget—especially before investing in large-scale branding initiatives.
Amazon is launching ads on its Prime video service and this article is all about how you can make the most out of it.
Let’s get started!
What are Amazon Prime Video Ads?
Amazon Prime video ads are shoppable product advertisements that play before and while your Prime Video is streaming and Amazon is launching ads on its prime video service.
Amazon Prime Video Ads are reshaping how brands engage with consumers by offering a direct way to reach millions of Prime subscribers within premium content.
According to Amazon, Prime Video households spend 22% more per month in the Amazon store than non-Prime Video households. These viewing habits and customer purchasing behaviour is all set to take online shopping by storm.
US-based viewers who want to watch without ads, they’ll need to pay an additional $2.99 a month over their Prime Membership.
Who can use Prime Video Ads? Eligibility and Criteria
Amazon to launch ads on Prime Video, which comes for a massive range of people. The following entities can access Amazon ads on Prime Video.
Brands and Sellers with Registered Trademarks – Since Prime Video Ads focus on brand awareness, businesses enrolled in the Amazon Brand Registry will have an advantage.
Larger Advertisers & Brands – While the full details of ad access haven’t been publicly outlined, big brands and agencies are likely the first to access these ads, with smaller businesses gaining access later.
Amazon DSP (Demand-Side Platform) Users – Advertisers already using Amazon DSP may have an easier entry into this format, as Prime Video Ads are expected to integrate into Amazon’s programmatic ad campaign system.
Budget Considerations – Unlike traditional Amazon Sponsored Ads (which work on a PPC budget model), Prime Video Ads may require higher budgets, making them more suitable for sellers willing to invest in branding.
Note- Ads won’t be shown in content that’s served up under kids’ profiles on Prime Video, and you won’t see ads in content you rent or buy.
Should Advertisers Invest in Amazon Prime Video Ads?: Available Buying Options
Preferred Deal
This option is the most economical, priced at $26 base CPM in the pitch deck, and accessible self-serve via Amazon’s DSP (Demand Side Platform).
Since this is a self-serve option, advertisers get to directly manage their campaigns without requiring Amazon’s managed services.
Guaranteed Buy
This option can be utilized by Managed service advertisers to access this tier at a base price CPM of $34. Advertisers opting for Guaranteed Buy can enhance their targeting by paying additional fees to refine their audience based on demographic factors such as age, gender, and income level. Or lifestyle attributes such as shopping habits, entertainment preferences, or product interests.
This level of precision helps brands connect with highly relevant audiences, increasing ad effectiveness. Additionally, advertisers can also advertise against the top 200 TV and movies on the platform.
Premium Sponsorships
This tier is another managed service offering, with ads costing between $600,000 and $8 million. At this level, advertisers can exclusively sponsor programs to enable their ads to be featured only.
This form of advertising enables utmost visibility and awareness and is designed for high-budget advertisers.
Ad Format for Prime Video Ads
Feature Rotator
The Feature Rotator is a carousel-like ad placement that appears prominently above the screen’s fold within the Prime Video app UI. This makes it one of the most visible parts of the interface, ensuring maximum exposure for your advertisement.
Sponsored Tiles
Sponsored Tiles are ad placements within a row of content. When a user highlights the ad tile, a mini-details page for the advertisement is displayed. This format seamlessly integrates ads into the user experience, providing additional information when users express interest.
Sponsored Channels
Sponsored Channels are ad placements that appear in the “My Subscription” row, reaching customers directly on the Prime Video home page. These ads help drive channel subscriptions by showcasing relevant content to interested viewers.
How is Prime video ads different from Sponsored TV ads?
| Feature | Prime Video Ads | Amazon Sponsored TV Ads |
|---|---|---|
| Placement | Within Prime Video streaming content | Third-party streaming services (e.g., Fire TV, Freevee) |
| Audience | Engaged Prime Video viewers | General audiences on multiple streaming platforms |
| Ad Integration | More seamless, tied to Amazon’s ecosystem | Broader exposure but less Amazon-focused |
| Access | Expected to be for larger advertisers first | Available via Amazon DSP |
How can Prime video ads benefit sellers?
Unskippable Content
Unlike traditional TV ads, Prime Video ads are unskippable which means the viewer has to sit through your ad amid watching their favorite show. Not only does it boost your brand discovery but also creates top-of-mind awareness.
Highly Engaged Audience
Just like you and I enjoy movies and shows on Prime Video, we’re talking about everyone else who is immensely driven to watch Prime Video. Even if the customer isn’t quite looking to shop anything from Amazon, a compelling video ad should entice the viewer into laying their eyes on your product.
Integrated with Amazon Shopping
Unlike generic TV commercials, Prime Video Ads can be linked directly to your Amazon store or product pages — and when those pages feature Amazon Shoppable A+ Content, conversions become significantly smoother by giving shoppers rich, interactive product experiences to land on. This gives you the perfect opportunity to gain traffic, clicks, and impressions on your product listings, especially when paired with promotions like Amazon Fresh Weekly Ads that target high-intent grocery shoppers.
Netflix, Disney+, Hulu, Max, Paramount+, and Peacock seemed to have hiked their prices on various ad-free tiers last year, with the explicit goal in some cases to encourage viewers to switch to the less expensive ad-supported tiers.
Higher Engagement
Video ads tend to capture more attention than static display ads, leading to better recall and brand association. Sellers can make every ad dollar count with these visually appealing video ads that capture the right attention and drive sales.
How Advertisers Can Prepare for Amazon Prime Video’s Ad Expansion
Understand the Ad Formats
The Prime video ads include both pre-roll and mid-roll ad breaks. The experience will vary depending on titles, with some featuring only pre-roll ad breaks. Sellers can test different ad formats to find out what fits.
Refine Targeting Strategies
Amazon takes the shopping habits, demographics, and interests of viewers into consideration. Prime Video ads helps your brand connect with relevant audiences using Amazon’s exclusive first-party signals and tools.
Wisely Refine Budgets
With Prime video ads being more advanced and powerful, setting aside a good amount of budget is the way to go. These ads being brand-awareness-driven a larger budget might be needed, compared to direct-response PPC ads.
Test and Optimize Performance
Look for hints your ad metrics are leaving. Stay updated with key performance indicators (KPI) like ROAS, ACOS, TACOS, ROI to fine-tune your campaigns from time to time and always find missing opportunities. Amazon Ads also offers powerful ad tech tools that allow advertisers to target a specific demographic or lifestyle segment.
Final Verdict
There’s everything about Amazon ads on Prime Video and its innovative ways of allowing sellers like you to advertise on a global scale by tapping into the potential of Amazon Prime Videos.
If your goal is to drive long-term brand recognition and reach engaged shoppers who are already spending more on Amazon, Prime Video Ads could be worth the investment.
However, this isn’t your standard PPC campaign, it requires a strong Amazon brand presence, a strategic approach, and a budget that aligns with its premium positioning. Sellers who haven’t yet built the brand infrastructure to support this level of visibility will find Prime Video Ads convert better once that foundation is in place.
Frequently Asked Questions About Amazon Prime Video Ads
Is Amazon ad campaign free?
Amazon Ads charges for the number of clicks or viewable impressions you receive on your ads. Amazon bills you only for valid events and not for faulty clicks to avoid unnecessary ad spends.
Who can run Amazon ads?
Registered Amazon professional sellers and Vendors can run Amazon ads. Sellers must be registered through the Amazon Brand Registry Services.
How much should my minimum budget be to run Amazon Prime ads?
Campaigns must have a minimum daily budget of $10 to use performance-based rules.
Will my ads be visible on Prime Kids’ profile as well?
Ads won’t be shown in content served under kids’ profiles on Prime Video to ensure utmost safety.
Which countries do Amazon Prime video ads exist in?
Amazon Prime video ads are available to access in the United States, Canada, France, Italy, Spain, Mexico, Australia, the United Kingdom, Germany, and Austria.
Where do Prime Video ads play?
Amazon Prime video ads are shoppable product ads that play before and while your Amazon Prime Video is streaming on your device.
Nischita Narayan serves as Content Strategist at Sequence Commerce, where she develops strategic content for Amazon sellers seeking to optimize their marketplace presence. With 4 years of specialized experience in e-commerce content creation, Nischita has developed a systematic approach to crafting product listings, A+ Content, and brand stories that align with Amazon’s search algorithms while engaging potential customers.
At Sequence Commerce, Nischita has implemented content optimization frameworks that have helped clients achieve measurable improvements in listing performance and conversion rates. Her expertise includes keyword research methodology, competitive content analysis, and creating conversion-focused copy specifically tailored to Amazon’s marketplace. Nischita regularly analyzes content performance data to refine strategies and adapt to Amazon’s evolving content requirements.
Before joining Sequence Commerce, Nischita worked with e-commerce brands across multiple product categories, developing an in-depth understanding of effective content structures for different types of Amazon listings. She combines her knowledge of Amazon seller strategies with content best practices to help brands stand out in competitive niches. Through the Sequence Commerce blog, Nischita shares practical insights on content optimization techniques backed by real-world testing and results.
Amazon advertising learning curve is steep but this post makes it manageable