Unlocking the Potential of Amazon Video Ads: A Beginner’s Guide

Discover why video ads are essential.

Let’s start with some numbers:

• 57% of advertisers invest in video ads due to improved effectiveness.
• 25% higher click-through rates (CTR) compared to static ads.
• 9.5x higher brand recall and 48% higher sales.
• Lower cost per lead and better ROI overall.

These stats highlight why video ads are outperforming traditional formats. But the real magic happens when video ads meet streaming platforms. Streaming has democratized TV advertising, making it accessible to advertisers of all sizes without the massive upfront costs of traditional TV. Plus, with real-time optimization and reporting, video ads offer unmatched flexibility and performance tracking.

When it comes to capturing attention, video ads also shine. Research from WARC shows that TV-style ads hold attention far longer than static ads, which often fail to cross the critical two-second mark. While linear TV has declined, its audience hasn't disappeared—they've simply moved online to platforms like BVOD, FAST, SVOD and Social Video. Consumers are now engaging with more video content than ever, though the primary platforms for viewing have shifted. For advertisers, this means more time to tell your story and connect with your audience.

Why should you choose Amazon Video Ads?

Amazon isn’t just an ecommerce giant; it is also a leader in programmatic advertising, thanks to its first-party data and unique ad inventory. Here’s what makes Amazon Video Ads special:

1. Precision Targeting

Amazon has access to deterministic first-party data from over 300 million active accounts worldwide. This data is incredibly accurate because it’s based on real purchase behavior, not just browsing habits or inferred interests.

Amazon also uses advanced modeling (based on its robust AWS platform) to create probabilistic audiences, giving advertisers even more ways to reach the right people at the right time.

2. Unique Video Inventory

Amazon’s video ad inventory is unlike anything else on the market. It includes:

• Prime Video: Ad-supported content that reaches millions of viewers.
• Twitch: A leading platform for live streaming, especially among younger audiences.
• Fire TV: Amazon’s proprietary smart TV, which competes with LG Smart TV and Roku.

What sets Amazon apart is its ability to bring these diverse channels together under one roof, all powered by its first-party data. 

3. Brand Safety & Ad Effectiveness

A common concern in programmatic advertising is the prevalence of made-for-advertising sites—low-quality environments that can hurt ad effectiveness. Amazon minimizes this risk by prioritizing high-quality placements. Why? Because every ad served reflects on the Amazon brand itself. In addition to owned and operated inventory, Amazon has direct access to multiple premium video inventory via its Amazon Publisher Direct platform.

The algorithms driving this ecosystem are built to maximize effectiveness, rapidly suppressing underperforming sites while prioritizing optimal results for advertisers. With the recent AI investment commitment of up to $100 billion, the future becomes even more exciting. How will these current algorithms evolve, and what new possibilities could this unlock for advertisers?

4. Advanced Analytics with AWS

Amazon’s ad platform is backed by Amazon Web Services (AWS), which powers over 30% of the internet. This infrastructure enables advanced measurement and analytics, helping advertisers gain deeper insights into campaign performance. For those looking to analyze data from multiple sources, Amazon offers Amazon Marketing Cloud (AMC), a privacy-safe environment for advanced analytics.

The debate around performance versus brand marketing continues to grow more compelling, with WARC emphasizing "The Multiplier Effect" achieved by combining both. Amazon Ads has already cemented its presence in performance marketing, leaving little room for doubt. What makes AMC particularly exciting is its ability to immediately quantify the impact of brand marketing on performance outcomes. For non-endemic brands that don’t trade on Amazon, AMC simplifies measuring the incremental reach provided by Amazon’s video channels, offering clear insights into the value of brand investments. 

Now is the time to explore Amazon Video Ads.

Amazon Video Ads offer a unique combination of precision targeting, premium inventory and advanced analytics. Whether you’re a small business or global agency, this platform has the tools to help you reach your audience and achieve your goals.

As an Amazon Ads Advanced Partner, Monks operate across the full spectrum of Amazon Ads including resale partnerships. Contact us to explore how we can help you succeed with Amazon Ads.