2023-09-22 17:23:46
By Caroline Sallé
Published 42 minutes ago, Updated 38 minutes ago
In 2022, Amazon generated $38 billion in advertising revenue. alexandarilich / stock.adobe.com
In France, advertisements will appear on the Prime Video service during 2024.
It was still an exception in the land of streaming. This will soon no longer be the case. After Netflix, Disney+, Max (HBO), Peacok, Hulu, etc. Amazon, in turn, gives in to the lure of advertising. The American giant announced Friday morning that its Prime Video service would broadcast advertisements from 2024.
These will appear in the United States, the United Kingdom, Germany and Canada from the start of the year. Then they will arrive in France, Italy, Spain, Australia and Mexico later in the year. The measure must make it possible to continue to “ invest in compelling content and continue to increase this investment over the long term ”, indicated the company on its website.
Also readHow Amazon became a champion of digital advertising
The e-commerce giant’s modus operandi will consist of inserting advertising breaks into the existing Prime Video package, while at the same time offering subscribers to pay more for an ad-free alternative. Across the Atlantic, you will have to pay an additional 3 dollars to avoid advertisements between two episodes of the Lord of the Ringsof The Fabulous Mrs. Maisel or of Jack Ryan.
« Amazon’s strategy is interesting : by switching all Prime Video subscribers to the ad-supported offer, Amazon will be able to have a massive audience to market from the start », Notes Philippe Bailly, president of the NPA Conseils firm. Unlike Netflix, whose new offer with advertising started from scratch.
Detailed knowledge of users
Amazon is already firmly established in the advertising market. In 2022, the company generated $38 billion in advertising revenue. A drop in the ocean compared to the 500 billion dollars in turnover garnered last year. But these revenues already exceed those from Prime subscriptions. Proof that the segment is dynamic, in the second quarter, advertising revenue reached $10.7 billion, up 22% compared to the same period last year.
The behemoth also has in-depth knowledge of its users. It therefore has the possibility of offering more qualified advertisements, which could be perceived as less intrusive by the consumer. But isn’t the latter, who had abandoned television channels and its advertising tunnels, at risk of fleeing again? Amazon took the lead by indicating that it would introduce a limited number of advertisements. “ We plan to run significantly fewer ads than linear TV and other streaming TV providers “, he wanted to reassure.
Read alsoApple disrupts online advertising
« If it doesn’t exceed four to five minutes of ads per hour, which is roughly the norm for subscription video-on-demand services, the user experience won’t be significantly degraded, estimates the boss of NPA Conseils. This remains acceptable : this is two to three times less than the advertising volume on television channels in Europe and four times less than on the antennas of American broadcasters. »
Viewers will have to get used to it. “ Streaming offers with advertising were an exception. They are becoming the new standard in the video on demand market », observes Philippe Bailly. The new world definitely has an air of déjà vu.
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