As university students, we’re no strangers to streaming services—whether it’s binge-watching late-night shows or tuning into live sports. But have you ever wondered how big companies like Amazon are shaping your streaming experience? Let’s dive into how Amazon’s venture into Prime Video advertising is paying off and why it matters to you.
The Growth Story of Amazon Ads
In the last quarter of 2024, Amazon’s advertising revenue hit $17.29 billion, marking an 18% increase from the previous year. While this is a slower growth rate compared to 27% in 2023, it’s still a remarkable feat. The company’s advertising efforts are evolving, and Prime Video is playing a major role in attracting new advertisers.
Why Prime Video Ads Matter
Prime Video, Amazon’s streaming service, is becoming more than just a platform for shows and movies. It’s now a crucial part of Amazon’s advertising strategy, helping them reach new brands that aren’t typically tied to e-commerce. These non-endemic advertisers, like automotive and financial service companies, see Prime Video as a way to connect with Amazon’s vast audience.
A Shift in Advertising Strategy
Amazon’s focus is shifting toward what marketers call “upper-funnel” tactics—ads that build brand awareness rather than just driving immediate sales. With premium content like NFL “Thursday Night Football”, Amazon is competing for attention in the booming ad-supported streaming space.
Competition Heats Up
But Amazon isn’t alone in this game. Netflix is stepping up with its own ad-supported content, including two high-profile Christmas Day NFL games and a Jake Paul vs. Mike Tyson boxing match. For viewers, this competition often translates to better content offerings and potentially lower subscription fees as advertisers foot part of the bill.
What This Means for You
- More Content, More Variety: With ad-supported models growing, you’re likely to see more diverse content as streaming giants invest in bigger and better programming.
- Lower Costs: Ad-supported streaming could offer more affordable subscription options for students on a budget.
- Targeted Ads: Expect to see smarter, more personalized ads thanks to Amazon’s vast data and commerce connections.
Looking Ahead
Amazon’s first year of Prime Video ads was a success, contributing significantly to its $56.2 billion advertising revenue in 2024. As competition intensifies and ad-supported streaming becomes the norm, Amazon’s momentum in this space will likely continue.
Final Takeaway
For university students who are always on the lookout for affordable entertainment, the rise of ad-supported streaming could be a game-changer. Keep an eye on how these shifts unfold—your next binge-watch session might just be brought to you by a cleverly placed ad from Amazon.