What is Amazon Sponsored TV?

The introduction of Amazon Ads’ Sponsored TV at the unBoxed 2023 conference on October 25 marks a significant expansion in the realm of advertising opportunities. This innovative self-service ad solution is tailored for brands of varying sizes that have a presence on Amazon’s U.S. marketplace. It offers a unique avenue for these brands to engage with audiences through streaming TV services. This development is a clear indication of Amazon’s commitment to integrating e-commerce and digital advertising, providing a seamless and immersive advertising experience that capitalizes on the growing trend of streaming TV viewership. By leveraging this platform, brands can now connect with their target audiences in a more dynamic and impactful way, right in the comfort of their living rooms.

Why Amazon Sponsored TV?

The recent insights from eMarketer and Amazon’s internal study underscore the growing potential and effectiveness of video advertising, particularly through platforms like Sponsored TV. The key findings are:

• Increased Viewer Engagement: According to eMarketer, viewers are dedicating an average of two hours a day to watching content on connected TV. This trend highlights the significant opportunity for advertisers to reach audiences in a setting where they are already highly engaged.
• Enhanced Reach and Purchase Rates: Amazon’s internal study revealed compelling statistics for advertisers who diversify their video advertising efforts. Those who utilized more than one video solution observed a +44% increase in incremental reach and a staggering +73% increase in purchase rate compared to advertisers who limited themselves to just one video solution.

Sponsored TV’s Advantages:

• Accessible: It is designed to be accessible to a wide range of advertisers, with no minimum spending requirements or upfront commitments, making it an attractive option for both small and large brands.
• Ease of Use: The platform boasts a user-friendly Sponsored TV Campaign Builder, located within the advertising console, simplifying the process of creating and managing campaigns.
• Interactive Features: Sponsored TV includes interactive ad formats, such as QR codes, which not only enhance viewer engagement but also drive consideration and brand awareness simultaneously.

Who can use Sponsored TV? 

Amazon Sponsored TV service is tailored to meet the needs of a diverse range of clients within the U.S. market. Its availability is specifically designed for:

• Seller Brand Owners Enrolled in the Amazon Brand Registry: This group includes businesses that have registered their brand with Amazon. The Brand Registry is a program designed to provide greater control over Amazon product listings and protect registered trademarks, ensuring that these sellers can effectively represent their brand on the platform.
• Vendors: This category encompasses a broad range of suppliers, including manufacturers and distributors who sell their products to Amazon, which then sells these products to consumers. This group also notably includes book vendors or publishers, highlighting Amazon’s continued emphasis on the book market, where it initially started.
• Agencies and Technology Providers: These are third-party service providers that assist brands in optimizing their presence and advertising on Amazon. Agencies might offer a range of services from managing Amazon Sponsored TV campaigns to broader digital marketing strategies, while technology providers could offer tools and software to enhance advertising effectiveness on Amazon’s platforms.

The inclusion of these diverse groups ensures that Amazon Sponsored TV can cater to a wide array of advertising needs, from individual brand owners to large vendors and the service providers that support them.

How are campaigns charged? 

The billing model for Amazon’s Sponsored TV campaigns is straightforward and advertiser-friendly. Campaigns are billed based on a Cost Per Thousand Impressions (CPM) model. This means advertisers are charged a specific amount for every thousand views their advertisement receives. This model is common in digital advertising and is particularly suited for campaigns aimed at increasing brand awareness and visibility.

A notable aspect of Amazon’s Sponsored TV is that advertisers do not incur any extra charges for their targeting selections. In many advertising platforms, advanced targeting options – such as demographic targeting, behavioral targeting, or geographical targeting – often come with additional costs. Amazon’s approach in not charging extra for these targeting preferences makes Sponsored TV an economically attractive option for advertisers.

Final Word 

In conclusion, Amazon Sponsored TV represents a significant leap forward in the realm of digital advertising. By combining the expansive reach of streaming TV with the precision and flexibility of Amazon’s advertising platform, it offers brands a powerful tool to connect with audiences in a meaningful and impactful way. The inclusion of features like no minimum spend, ease of use, and interactive ad formats, along with a cost-effective CPM billing model without additional fees for targeting, makes Sponsored TV an attractive option for a wide range of advertisers in the U.S. market. As viewer habits continue to evolve towards connected TV, Amazon Sponsored TV is poised to become a key player in shaping the future of advertising, offering new opportunities for brands to grow and succeed in this dynamic digital landscape.