How Fire TV can help advertisers extend their net reach
In 2021, there will be an estimated 213.7 million streaming TV viewers users in the US – a total of 63.8% of the population.1 And the streaming TV audience is expected to keep growing, year over year, to 230 million in 2025.2
With the majority of US viewers now streaming content, brands are investing more in streaming TV ads. It’s projected that spending will exceed $4 billion this year,3 as advertisers seek to reach audiences on this channel.
Fire TV is Amazon’s streaming TV ad solution that allows customers to easily stream shows, movies and sports from multiple providers. More than 50 million monthly active viewers worldwide use Fire TV to access their favourite content.4
If you’re a brand that’s considering advertising on Fire TV, you may be curious about whether Fire TV can help you reach more new customers. You may also be wondering what makes Fire TV customers distinct from linear TV viewers. Similarly, you might also want to know if Amazon’s streaming video ads product can help you reach your customers, even if you don’t sell products in Amazon’s store.
To answer those questions, we analysed proprietary Nielsen Media Impact (NMI) insights and optimization algorithms applied to 51 brands to express the incremental reach brands can gain by including Fire TV in their media budget. The 51 brands consisted of 26 brands that sell products or services on Amazon and 25 brands that do not sell products or services on Amazon.
Here are our key learnings:
We used machine learning algorithms to test the theoretical performance of advertisers’ media plans. The algorithm optimises each brand’s linear TV dollars across broadcast, cable, syndicated and Fire TV to maximise net reach, or the total audience that would receive one or more ad impressions. The output shows that allocating the optimised portion of its linear TV budget to Fire TV would have increased each brand’s total net reach by an average of 2.2 percentage points. The output also shows that approximately 39% of the audience reached by Fire TV would not be reached through broadcast, cable or syndicated ad impressions.
1 Connected TV users, US, eMarketer, February 2021.
2 Connected TV users, US, eMarketer, February 2021.
3 “US upfront CTV ad spending will surpass $4 billion this year,” eMarketer, 2021.
4 Amazon Advertisers can now reach more than 50 million monthly active users on Fire TV.