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OTT Advertising on Amazon in 2023: The Ultimate Guide and How to Benefit

Amazon OTT advertising began to earn a lot of popularity due to its distinctive goals. These particular goals include expanding audience r...

OTT Advertising on Amazon in 2023

Amazon OTT advertising began to earn a lot of popularity due to its distinctive goals. These particular goals include expanding audience reach and improving brand performance initiatives. And Amazon advertising was the beginning of it all. If you are an Amazon merchant, Amazon advertising is quite important.


By enhancing your product's visibility, the platform's advertising solutions, like Sponsored Product campaigns, greatly assist sellers by boosting traffic to your product listing and boosting product sales. The name of Amazon's advertising services was changed to "Amazon Advertising" in 2018.


The "Amazon Ad Console" now includes Product Display Ads, Sponsored Products Ads, and Sponsored Brands Ads. The "Demand-Side Platform" is a further branch that sellers should be aware of. It enables advertisers to purchase video advertisements and display ad placements, as well as engage audiences both within and outside of Amazon. It was formerly known as the Amazon Advertising Platform.


In the early months of 2019, they introduced Over-The-Top advertising, which coincided with the rise in popularity of video streaming services. Let's examine Amazon OTT advertising and its significance in the current era of new media.


Quick Guide

What is OTT advertising on Amazon?

How do Amazon OTT ads function?

What Benefits do OTT advertisements offer?

New features and modifications for Amazon OTT




What is OTT advertising on Amazon?

The internet streaming options that are popular today that don't require a cable or service provider are known as over-the-top, or OTT, video services. One of the most common ways to consume media at the moment is through OTT streaming services. Therefore, it makes a lot of sense for advertisers to take advantage of this platform's expanding popularity, particularly to target the younger demographic.

There are OTT advertisements in places like:


·       Popular apps for streaming video

·       Streaming gadgets

·       Digital TVs

·       Gaming systems


Platforms for streaming videos online are very popular right now, especially with young people. About 60% of young individuals are thought to primarily consume content through video streaming services. Consider the Amazon Fire Stick, one of the most popular streaming gadgets at the moment with more than 40 million users who are active each month. Ad-supported third-party apps are supported by the Amazon Fire Stick in excess of 50. It's simple to see how these streaming apps may be used for advertising.


How do Amazon OTT ads function?

On the Amazon DSP platform, Amazon OTT advertisements function. Every day, millions of Amazon Fire Stick users will see these advertisements. The adverts are full-screen and cannot be skipped. The ability to target an audience gives advertisers a significant advantage over traditional TV ad spots. Please be aware that as these are not clickable ads, neither click-through rates nor direct conversions may be used to determine the effectiveness of the advertisements. Ad impressions are used to measure it instead. Therefore, unlike Sponsored Ad Campaign, these adverts are compensated based on impressions rather than clicks.


Advertisers can purchase video placements in Fire TV ad-supported apps using the demand-side platform. You can utilize Amazon DSP's automatic advertising for OTT adverts and audience targeting features.


What Benefits do OTT advertisements offer?

Let's look at the benefits of using OTT commercials now that we have a better understanding of what Amazon OTT advertising is and how it functions.


Better targeting: Unlike traditional television commercials, OTT ads on Amazon let you more precisely target your audience. Your ad will receive engagements from the appropriate audience thanks to Amazon DSP's audience insights, which will increase product sales.


Based on: Amazon DSP provides insights regarding your audience.


·       Interests in products and purchasing habits.

·       Demographics including gender, age, and other factors.


You can use Amazon OTT to combine the potency of the visual format with the demand-side platform's targeting capabilities.


Ad conquesting: In Amazon OTT advertising, you can target customers who have also looked at the products of your rivals. Currently, only Amazon OTT advertising offers this capability. This will enable you to attract a small number of audience members who are considering purchasing your competitors' goods.


Amazon: less expensive than TV commercials OTT advertisements cost less than conventional television advertisements. The price of advertising slots has increased dramatically due to the fall in TV viewing. As a result, OTT commercials are a far more affordable kind of visual advertising because the ad spend is much more manageable. Additionally, keep in mind that OTT advertising are simpler to track and that it is much simpler to obtain pertinent data after the campaign has concluded.


Access to the audience that is hard to approach – Amazon OTT ads will provide you access to the audience that is otherwise difficult to contact. For instance, it can be challenging to target people who have ad-blockers enabled and those who either don't have a TV subscription or have cancelled their current one. You can reach these audiences by using Amazon OTT.


New features and modifications for Amazon OTT

In November of last year, Amazon made a few adjustments to improve their OTT advertising. Included in this are new programs that would present opportunities for more advertisements and new tools that would help advertisers develop their brands. Let's examine these modifications:

1.New material: To expand the potential for commercials to reach a wider audience, Amazon has added new content to IMDb TV and Amazon Prime Video, including new movies and additional content for NFL Thursday night football.

2.Amazon first released the genre filtering function in September of last year, giving advertisers more control over where their ads are displayed. This tool allows you to block up to 5 content categories, ensuring that your advertisements only appear in those that are pertinent to your target demographic and are likely to generate impressions from them.


3.Audience guarantees: You can choose to purchase adverts for the audience you want to target thanks to Amazon's audience guarantee. In essence, you would only be required to pay for the impressions that reach customers who are interested in your brand and product.

4.Even if they don't already have their own video assets, advertisers can develop video ads from scratch using the video creative builder beta. You can select from its collection of films and templates to test out various ad concepts without spending any time or money.


Internet-based video streaming services are where the future and present of visual content production and consumption will be found. This shift is evidenced by the loss of traditional television and the growth of streaming services' user bases. Advertising prospects in these streaming services are mostly unexplored, which is fantastic news for advertisers as we are only starting this paradigm shift.

Because of this, OTT advertising on Amazon makes more sense for any brand owner trying to increase visibility for his goods and company. This is the ideal time to start using this mostly untapped advertising opportunity, before everyone else does and before they all start to swarm in.

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