Amazon DSP prime video ads are a programmatic advertising solution that enables brands to place video content within streaming media on the Amazon Prime Video platform. By utilizing Amazon’s first-party shopper data, these ads allow sellers to reach specific audiences on Connected TV (CTV) devices, gaming consoles, and mobile apps. This approach combines the broad reach of traditional television with the precise targeting and measurement capabilities of digital marketing platforms.
What are Amazon Prime Video ads?
Amazon Prime Video ads represent a significant expansion of the retail giant’s advertising ecosystem. Unlike Sponsored Brands video ads that appear in search results, these ads run during the actual content on Prime Video, including movies, television series, and live sports. Amazon reports a monthly US ad-supported streaming reach of over 200 million users, making it one of the largest video ad platforms available to digital marketers today.
These ads are typically non-skippable and are integrated into the viewing experience. They allow brands to tell a story through high-definition video while the viewer is engaged with their favorite content. Because they are delivered via the Amazon Demand-Side Platform (DSP), advertisers can control frequency and placement across various devices, ensuring that the message reaches the right person at the right time.
How do you target audiences on Prime Video?
Targeting for Prime Video ads is one of the most sophisticated aspects of the Amazon DSP. Instead of relying on broad demographics like traditional TV, you can use behavioral data. For example, a kitchenware brand can target users who have recently purchased gourmet ingredients or browsed for high-end blenders on the Amazon store. This level of precision ensures that your video budget is spent on viewers who have a higher likelihood of interest in your products.
Common targeting strategies include:
- Lifestyle segments: Targeting users based on long-term habits, such as ‘Organic Foodies’ or ‘Fitness Enthusiasts’.
- In-market segments: Reaching customers who are currently actively searching for products in your specific category.
- Remarketing: Showing ads to users who have previously visited your product detail pages but did not complete a purchase.
- Audience lookalikes: Finding new customers who share similar characteristics with your existing high-value buyers.
Furthermore, advertisers can exclude audiences who have already purchased the advertised product. This prevents wasted spend and improves the overall efficiency of the campaign. By focusing on relevant audiences, brands can maintain a higher engagement rate compared to standard broadcast commercials.
Why should brands invest in Prime Video ads now?
The landscape of digital video is shifting rapidly toward streaming services. According to projections from the vendor Omdia, Prime Video is expected to surpass YouTube as the top CTV ad platform by 2027. This growth indicates that more consumer attention is moving away from traditional media and toward ad-supported streaming environments where Amazon holds a dominant position.
For sellers on Alien Road, this shift offers a chance to build brand equity before a customer even types a query into the search bar. High-quality video ads create a lasting impression that can lead to an increase in branded search volume. When a customer sees a professional ad on their 65-inch television, it lends a level of credibility and authority to the brand that small mobile display ads often cannot achieve.
What metrics should you track for CTV?
Measuring the success of a Connected TV campaign requires a different mindset than measuring Sponsored Products. Since viewers cannot easily click a TV screen to buy a product, the focus shifts to awareness and consideration metrics. The Amazon DSP provides deep insights into how these ads influence the customer journey, even if the final purchase happens days later on a different device.
Key performance indicators (KPIs) to monitor include:
- Video Completion Rate (VCR): The percentage of viewers who watched the entire ad without closing the app.
- New-to-Brand (NTB) Metrics: The percentage of purchases made by customers who have not bought from your brand in the last 12 months.
- Detail Page View Rate (DPVR): How many people visited your product page after seeing the video ad.
- Branded Search Lift: The increase in searches for your brand name following the launch of the campaign.
Additionally, brands can use Amazon Marketing Cloud (AMC) to see the overlap between users who saw a Prime Video ad and those who eventually converted through a search ad. This cross-channel attribution helps in understanding the true value of top-of-funnel investments.
How to set up your first Prime Video campaign?
Starting a campaign in the Amazon DSP involves several technical steps. First, you must have an active DSP account, either through a managed service or a self-service agency partner. You will navigate to the ‘Campaign Management’ section and create a new ‘Order’. Within this order, you will set your total budget and flight dates, ensuring they align with your overall marketing calendar.
The next phase is creating ‘Line Items’. For Prime Video, you will select the ‘Streaming Video’ line item type. This allows you to choose specific placements and target your desired audiences. You will then upload your creative assets to the ‘Creative Library’, making sure they meet the high-quality standards required for large-screen viewing.
- Step 1: Define your audience using Amazon’s first-party data segments.
- Step 2: Set a daily or lifetime budget that allows for sufficient frequency.
- Step 3: Upload 15-second or 30-second high-definition video files.
- Step 4: Select ‘Prime Video’ as the primary supply source.
- Step 5: Link the ad to your Amazon Storefront or specific ASINs for tracking.
Creative requirements for professional video ads
Because Prime Video ads appear alongside premium Hollywood content, the quality of your creative is vital. A low-resolution video or a poorly edited clip will stand out for the wrong reasons. The video should be in a 16:9 aspect ratio with a minimum resolution of 1920×1080. The audio must be clear and balanced, as many viewers will be using home theater systems.
The content of the ad should focus on brand storytelling rather than just hard-selling features. A common pattern is to introduce the problem in the first 3 seconds, show the product in use by the 10-second mark, and end with a clear brand logo. Since the ads are non-clickable on most devices, including a clear verbal or visual call to action, like ‘Search for [Brand Name] on Amazon’, is a frequent strategy used by successful sellers.
Managing your budget and bidding strategy
Bidding on the Amazon DSP is based on a Cost Per Mille (CPM) model, meaning you pay for every 1,000 impressions. Prices can vary based on the competition for a specific audience and the time of year. During peak shopping events like Prime Day or the holiday season, CPMs for Prime Video inventory typically increase as more brands vie for the attention of shoppers.
It is advisable to start with a testing budget that allows the Amazon algorithm to gather enough data. A typical account might see better results by maintaining a steady presence rather than fluctuating budgets wildly. By keeping a consistent ‘always-on’ approach, you can capture demand throughout the entire customer journey, from initial discovery to the final click.
Where to start this week
The first step is to audit your existing video assets to see if they meet the technical specifications for Connected TV. Check if your current videos are 15 or 30 seconds long and if they convey a clear brand message without relying on clicks. If you do not have high-quality video, consider reaching out to a production team to create assets specifically for the living room experience.
Once your assets are ready, log into your Amazon DSP console and explore the audience discovery tool. Look for segments that align with your top-performing search keywords. Planning your first streaming video test now will position your brand to take advantage of the growing reach of Prime Video before the marketplace becomes even more competitive.
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