Amazon Selling OTT Ads Outside Of Fire TV

Amazon Selling OTT Ads Outside Of Fire TV

Amazon is pursuing deals to start selling streaming video advertising outside of its own Fire TV ecosystem, on platforms such as Apple TV, Xbox, PlayStation, and Android TV, according to The Wall Street Journal.

Specifically, Amazon Publisher Services is attempting to forge new relationships with TV app owners to integrate technology that would let it sell some of their ad inventory on other streaming services.

Content providers including CNN, Discovery, and A&E, as well as streamers including Pluto TV and Tubi, are already working with Amazon to sell ads, reports WSJ.

While major media companies may not be tempted to give Amazon more of their ad inventories, the proposition might be welcomed by video publishers with fewer resources to maximize their inventory sales, the report points out.

Indeed, in addition to extending its powerful ad-targeting capabilities — driven by its massive first-party shopping and browser data — to other platforms, Amazon is said to be promising prospective partners it can sell ads at substantially higher prices than other third-party platforms (at CPMs of up to $40).

Roku has captured some 60% of the frustratingly fragmented CTV programmatic ad business. That’s been due largely to its ability, through a partnership with Innovid, to offer advertisers in-depth campaign performance reports that combine CTV and cable TV viewership data, according to Motley Fool’s James Brumley.

But while Amazon has some catching up to do on the OTT ad-learning curve, Brumley points out that on the OTT devices front, Amazon has already managed to whittle Roku’s market share down from nearly 50% in 2016 to 39%, by growing its Fire TV share from 16% to 39%.

“Amazon brings two other upsides to the table that could eventually prove disruptive, too,” he adds. One is that “mountain” of transactional and other data on Prime members and other Amazon eCommerce customers. The other is “deeper pockets to develop or acquire whatever measurement tool advertisers want.”

Advertisers are already increasingly addicted to Amazon’s digital advertising DSP, which is making gains on Google and Facebook. And it looks like Amazon won’t be satisfied until it’s the go-to source for OTT/CTV ad buys, as well.

Not surprising, given this megalith’s genius for attaching itself to money pots, wherever they may appear. eMarketer estimates that CTV ad spending will rise from $6.9 billion in 2019 to $8.9 billion this year.


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