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The new Sponsored TV can be a game changer for Sponsored Ads

Amazon Advertising Lessons - Dec 2

Author

George Reid
December 02, 2023

Amazon has recently introduced new Sponsored TV Ad type for Sponsored Ads, now accessible across all accounts in the United States.

This expansion to a different viewer platform offers businesses a potential opportunity to broaden their brand reach. In this week's email, we explore this new Ad type and assess its viability for consideration in your advertising strategy.

Find out what’s wrong with your Amazon Ads. Book a PPC Audit.

Riding the Wave of Amazon Streaming

With Sponsored TV, Brands can display ads on Amazon streaming TV services like Twitch and Freevee to tap into a growing viewer base on Amazon's streaming platform. According to Amazon's data, viewers spend an average of two hours daily on this platform, making it a potent tool for enhancing brand awareness.

The growing viewer base

During the Newfront event 2023, it was unveiled that brands utilizing Amazon's ad-supported streaming TV solutions across Amazon properties and Amazon Publisher Direct can now reach an impressive average monthly audience of more than 155 million. This large audience number suggests that the platform can reach a wide and varied group of viewers.

Beyond Brand Awareness

Amazon's internal study highlights a +73% purchase rate and a +44% incremental reach compared to those relying on a single ad approach. These numbers underscore the effectiveness of Sponsored TV in not only capturing attention but also driving meaningful consumer actions.

Amazon’s integration of Shopping with Viewing

What sets Amazon streaming TV ads apart is the seamless integration of shopping with viewing. Amazon has been rolling out innovative features to strengthen it. For instance, the new “send to phone” or “send to email” feature sends a push notification on the phone/email that links directly to the brand store page or product page, as well as QR code option to open detailed product pages. This integration of entertainment with shopping creates a dynamic environment where brands can directly engage with potential customers, fostering a more direct path to conversion.

Low Investment Required

Unlike DSP, Sponsored TV eliminates the entry barrier of minimum spend. For businesses concerned about high spending requirements, Sponsored TV is a good fit since there are no minimum budget requirements. Similar to other campaigns, marketers can start with a small daily budget. The minimum bid for 1000 impressions (it’s a CPM model), is just $10. This means advertisers can run the campaign with a minimum daily budget of $20.

Defined Targeting with First-Party Insights

Targeting the right audience is crucial to any successful advertising campaign, and that requires audience insights. Sponsored TV comes with Amazon's first-party insights to target audiences based on likely content interests and specific product categories on the Amazon platform. This level of precision ensures that your ads reach the most relevant and engaged viewers.

An Opportunity Worth Exploring

As the marketing landscape continues to evolve, and the rising trend of video content, the introduction of Sponsored TV on Amazon's streaming services opens up a world of possibilities for brands seeking to elevate their advertising strategies. With its proven effectiveness in increasing brand reach, driving purchase rates, and providing a unique shopping-viewing experience, Sponsored TV is certainly an opportunity worth exploring.

Whether you're a small business with a modest budget or a larger enterprise aiming for expansive brand awareness, Amazon's Sponsored TV has the flexibility and features to align with your advertising goals. As the numbers and features suggest, the potential benefits of incorporating Sponsored TV into your marketing mix are substantial. So, should you consider using it? The answer seems to be a resounding yes.

Other learnings:

  1. New 'Add to Cart' metric for Streaming TV. This new feature allows users to track campaign yields and enables remarketing strategies for potential buyers. [Read more].

  2. Black Friday sales rose 7.5% YoY. With over half of the $9.8bn total coming from mobile shopping. Brands are advised to optimize their mobile strategy for better results. [Read more].

  3. Tips to protect your Amazon account from threats. Protecting your Amazon account is crucial. Here are some useful recommendations that help. [Read more].

Thanks,

Himanshu

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