Prime Video Ads Are Here: What It Means for Amazon Brands

On January 29, Amazon started showing limited ads in Prime Video shows and movies in the US and several other countries. Prime members who want no ads can pay extra. Overnight, Amazon became one of the largest streaming ad platforms in the world.

Most of our clients will not buy Prime Video ads directly any time soon. But this change still matters for Amazon sellers. Here is why.

What changed

• Prime Video now includes limited ads by default.
• Members can pay an extra monthly fee for an ad free option.
• Advertisers can buy these ads through Amazon’s DSP and streaming TV options.

What it means for advertisers on Amazon

More brands will advertise “upstream”

Big brands can now reach Prime Video audiences and connect that to sales on Amazon. As they build awareness on TV, more shoppers will search for those brands by name. That can make generic keywords in some categories even more competitive.

Smaller brands get a path too

With Sponsored TV, announced last year, brands without huge budgets can run streaming TV ads with no minimum spend. We covered it in our post on Sponsored TV. Prime Video adds a huge pool of viewers to Amazon’s streaming ad options.

Measurement gets more connected

Because Amazon knows what people buy, it can link TV ad exposure to Amazon sales in a way traditional TV cannot. Tools like Amazon Marketing Cloud are part of that story.

What smaller brands should do

• Protect your brand searches. As awareness ads grow, keep your branded search campaigns strong so you capture the demand you create.
• Win on the product page. Bigger brands can buy attention. You can win on clear listings, strong reviews and good value.
• Use video assets you already have. If you make video for Sponsored Brands or social media, you are closer to testing streaming TV than you think.
• Watch your cost per click. If generic keywords get more expensive in your category, shift budget to long tail and exact match terms that still convert.

Should you test streaming TV in 2024?

If your core Amazon ads are strong and you have a good video, a small, measured test can make sense. If you are still fixing listings or PPC basics, focus there first. Search ads still drive most sales for most brands.

The bottom line

Prime Video ads make Amazon a major TV advertising platform. For most sellers, the impact is indirect for now: more competition for attention and more ways to build brand awareness. Keep your search ads and listings strong, and test streaming only when your basics are in place. If you want help planning your 2024 ad mix, see our Amazon PPC management service.

FAQs

When did Prime Video start showing ads?

Amazon began showing limited ads in Prime Video in the US on January 29, 2024.

Can small brands advertise on Prime Video?

Streaming TV options like Sponsored TV give smaller brands a way in, with no minimum spend. Prime Video inventory has mainly been sold through Amazon’s DSP and streaming TV products.

Will Prime Video ads make Amazon PPC more expensive?

Possibly, in some categories. As big brands build awareness, competition for searches may rise. Focus on exact match and long tail terms that convert well.