Observed Signal · Sep 27, 2024 · Product Launch · Source: OnlineMarketing.de · Impact: 4/5 · Sentiment: Positive
Ads in Amazon Prime Video Prove Worth It
Amazon has integrated advertising into its Prime Video subscription, angering some users who now face an ad-supported tier alongside a raised price for an ad-free option. In Q2 2024, Amazon reported revenue of $148 billion, with Advertising totaling about $12.8 billion. The company aims to push ad spend further, pairing ads with the Prime experience; since early 2024, paying subscribers see ads in Prime Video, with the ad-supported tier costing roughly €3 more per month. The Information cites an internal ad-spend upfront target of $1.8 billion for advertisers, reportedly surpassed. Advertisers may be drawn to Prime Video due to lower CPMs (start around $30) compared with Netflix and Disney+, while Amazon can monetize ad inventory directly in streaming, including on Twitch. The plan for 2025 suggests substantial growth in this area, though the change has affected brand perception and led some cancellations.
Major platform monetization update; ad inventory expansion in Prime Video with multi-billion ad revenue implications.
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Key Takeaways & Evidence Grounding
- Q2 2024: Amazon revenue $148B, Advertising $12.8B
- Prime Video began showing ads to paying subscribers on Feb 5, 2024; ad-supported tier costs about €3/month
- Internal upfront advertiser payments target: $1.8B; reportedly surpassed
- Initial CPMs around $30, lower than Netflix/Disney+
- 2025 planning anticipates substantial growth in Prime Video ads
Connected Companies & Entities
4 Entities mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Amazon Raises Prime Video Ultra Price Amid Ad Growth
Amazon announced a $2 monthly increase to its ad-free Prime Video tier in the U.S., raising the price from $2.99 to $4.99 a month and rebranding the tier as "Prime Video Ultra." The upgraded plan, effective April 10, adds features including streaming on five devices simultaneously, up to 100 downloads and 4K streaming. Amazon introduced ads on Prime Video in 2024 and continues to offer an ad-supported viewing option; the company said Prime Video maintained an average ad-supported audience of more than 315 million viewers globally. Amazon reported advertising revenue for 2025 of $68.6 billion (up 22% year over year) and ranks third in the digital ad market behind Google and Meta. The change underscores Amazon’s continued monetization of streaming through both ad-supported and premium ad-free offerings.
Amazon's 'About You' Data Reveals Quirky Customer Insights
A viral Threads post revealed the 'About You' feature in the Amazon app, which displays inferred personal attributes about customers based on their shopping history, reviews, and Alexa interactions. Examples include 'flat buttocks', 'owns a Kindle Paperwhite', and 'is too small to reach into a 40-inch deep box'. The feature, which is not available in Germany, sparked amusement and concern about data collection. Amazon states that the data is used to provide relevant recommendations and that users can view and adjust these preferences. The article underscores the extent of Amazon's data-driven personalization and transparency.
Nestlé Mexico Unifies Data with AI Platform
At Treasure AI's Agentic World event in Miami, executives from Nestlé México discussed how the CPG giant, which reaches 90% of Mexican households and owns over 70 brands, unified its customer data to break down silos. Partnering with Treasure AI, an agentic experience platform, Nestlé México now connects its CRM data and hashed data from Amazon's clean room to identify duplicate customers and understand cross-brand interests. Using engagement signals, the company's La Lechera brand segmented audiences into traditionalists, experts, and explorers, leading to a campaign with nearly double the open rate. By prompting AI agents, Nestlé México can target smaller brands' customers by leveraging data from larger ones like KitKat, enhancing personalization and holistic targeting.
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