Amazon Ads has unveiled a new self-service advertising system called Sponsored TV, which allows brands that sell goods on Amazon to reach a wider audience through the company’s streaming TV services. The expansion of Sponsored TV builds on Amazon’s existing product ads in online searches. This new tool will support Amazon Ads across various platforms, including Amazon Freevee, Twitch, and Fire TV apps. The announcement was made by Ruslana Zbagerska, vice president at Amazon Ads, during the Amazon Ads unBoxed 2023 event in New York.
Zbagerska highlighted that many brands have been unable to take advantage of TV advertising due to factors such as high spend minimums and the lack of relevant creative assets. However, with Sponsored TV, she stated that this will change as it offers a self-service solution with no upfront commitments or minimum spend requirements. Additionally, Sponsored TV utilizes an interactive ad format, enabling brands to engage with consumers on a larger screen in their living rooms.
Advertising agencies and platforms have been encouraging smaller brands to explore advertising on streaming television as an alternative to traditional TV ads, which can be costly. Sponsored TV could serve as the necessary support for the industry to make this transition. Amazon is also offering additional creative services, such as Creative Studio and AI tools. Moreover, all Sponsored TV campaigns are powered by Amazon’s machine learning (ML) technology.
The effectiveness of Sponsored TV has been tested with several Amazon clients, resulting in successful outcomes. For instance, one brand witnessed a fourfold increase in branded searches after utilizing Sponsored TV alongside their existing creative. This indicates the potential impact and value of incorporating streaming TV advertising into a brand’s marketing strategy.
While Amazon continues to expand its TV advertising business, it remains uncertain whether Prime Video inventory will be made available through Sponsored TV in the future. Nonetheless, this announcement showcases Amazon’s commitment to offering innovative advertising solutions and providing brands with opportunities to reach a broader customer base through streaming television.
