Amazon Strikes Three-Year Streaming Ad Pact With IPG Mediabrands
Starting next year, major marketers such as Geico or General Mills could find themselves running commercials alongside popular Amazon programs like “The Marvelous Mrs. Maisel” or “Jack Ryan” that were previously untouched by advertising.
Amazon’s ad-sales unit has struck a three-year deal with Interpublic Group’s Mediabrands, which manages and helps to invest more than $47 billion in marketing investment around the world, to place its clients’ commercials on Amazon Prime Video next year when the service is slated to include commercials. Interpublic is the first of the industry’s big advertising holding companies to reveal a partnership with Amazon on its new plan, which is expected to send more of Madison Avenue’s overall dollars to support streaming-video content.
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“Amazon’s latest offering brings a first-to-market opportunity for our clients to reach consumers at the category level in a comprehensive, scalable way – from culture and content to commerce and shoppable experiences,” said Eileen Kiernan, Global CEO of IPG Mediabrands. “We are excited to play a role in this game-changing addition to the streaming TV marketplace and serve as Amazon’s anchor partner as they bring Prime Video ads to life.”
Mediabrands represents advertisers including the aforementioned insurance and packaged-goods giants, as well as New Balance, Constellation Brands and Carnival Cruises, among others.
Amazon said in September that Prime Video, one of the last mainstream streaming services to avoid the injection of regular commercial breaks into its movies and shows, would start to include them early next year. Under the plan, all Prime subscribers will move to an ad-supported model, but those who want to keep Amazon Prime Video ad-free can still do so — for an additional $2.99 per month in the U.S..
Prime Video ads will initially roll out in the U.S., U.K., Germany, and Canada, followed by France, Italy, Spain, Mexico, and Australia later in the year. IPG Mediabrands will support all of these countries in 2024.
Amazon launches its advertising salvo after several rivals have already entered the market. Netflix even tested an upfront sales model this year, though it has been plagued by an inability to offer the mass of impressions many big advertisers say they need as well as a shake-up of the executive team overseeing its outreach to marketers and media buyers. Disney has opened Disney+ to commercials as well.
Under terms of the pact, Mediabrands will collaborate on strategies for different sponsors, and give some clients “first look” opportunities to test new models and ad formats. Mediabrands advertisers will also be able to utilize data and research Amazon has about viewers shopping and viewing habits to inform their marketing plans.
Amazon appears to be backing the notion that Prime Video can reach an estimated 115 million viewers on a monthly basis. The company also says it “aims to have meaningfully fewer ads than linear TV and other streaming TV providers while simultaneously offering advertisers reach, frequency, and opportunities to tailor their messages.”.
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