We launched over-the-top (OTT) video ads at Amazon Advertising earlier this year to connect brands with TV-viewing audiences. Ryan Mayward is the director of ad sales for Amazon Advertising, and is focused on helping advertisers realize the benefits of OTT video. We spoke with Ryan about how brands are using OTT video to reach their customers and how the unique relationship between Amazon Advertising and Amazon Publisher Services benefits agencies and advertisers.
There are more than 37MM Fire TV monthly active users worldwide.1 With this, we’ve seen usage of ad-supported Fire TV apps increase more than 300% in the last year.2 Among other things, advertisers are using our ad-supported content to reach younger audiences, whose viewing behaviors have shifted from traditional cable viewing.
Right now the majority of our OTT supply consists of NFL Thursday Night Football on Prime Video, over 50 third-party ad-supported OTT apps like Pluto and AMC, and IMDb TV—a free streaming video service available to all users on Fire TV, the Prime Video app, and the IMDb website and app across millions of devices.
We access third-party OTT inventory through our unique relationship with Amazon Publisher Services (APS). APS’s direct integrations with OTT apps remove intermediaries and their fees. This means advertisers can see what they’re paying for with transparency in their media costs.
APS does work with other demand-side platforms, but there are some key benefits for advertisers that use the Amazon DSP.
First, you can win more bids, as your media dollar goes further. All DSPs compete equally in the bid for impressions, but the Amazon DSP is not subject to the 15% supply-side fee that other DSPs are when using APS. In addition, you have access to inventory that other DSPs don’t. With the Fire TV inventory optimization policy, ad-enabled apps reserve 30% of their total advertising impressions for Amazon. So with Amazon DSP, you have access to more inventory, and you’re also benefitting from a more efficient supply path with no “tech tax.”
Another advantage is that you can increase your unique reach by more than 65% by combining APS with exclusive ad inventory like IMDb TV.3 These two inventory sources have a small audience overlap, with only 12% of total unique viewers visiting both IMDb TV and any of the publishers available through Amazon Publisher Services. This means you’re reaching a larger audience, rather than a smaller audience at a higher frequency.
Finally, Amazon insights help make campaigns more relevant, so advertisers reach audiences likely to engage with their brand. For example, auto insurance companies can reach audiences shopping for car parts. This means you can reach audiences that are more relevant for your brand than simply demographics on TV, and reaching the right customers ultimately drives results.
1. Amazon internal data, August 2019. "Monthly active user" represents an Amazon customer account who used Fire TV in the given calendar month.
2. Amazon internal data, June 2019.
3. Amazon internal data, October 2019.