A Prime Video Ad Tier Isn’t Imminent—But It Makes a Lot of Sense

Prime Video is one of the only remaining streaming services that remains off-limits for advertisers—but that could soon change. When it comes to streaming strategies, ad tiers are all the rage. Both Disney+ and Netflix added ad tiers in the last year, and Amazon's own free, ad-supported platform Freevee recently proved with megahit Jury Duty that its audiences will still flock to programming with advertising. With that context, a recent Wall Street Journal report that Amazon's Prime Video plans to add an ad tier makes perfect sense. However, it looks like any potential ad tier may still be a ways off. Speaking anonymously, a source familiar with the matter told Adweek that the report "surprised" Amazon and that, if an ad tier were on the way, the company would let media buyers know before that knowledge was made public. Multiple buyers also confirmed to Adweek that Amazon has not been in contact with them about a potential ad tier. For its part, an Amazon spokesperson told Adweek, "We don’t comment on rumors or speculation." But just because an ad tier may be far off, that doesn't mean it's not a good idea. Prime Video Comes to Freevee While Fire TV Gets FAST at NewFronts From the Prime Video side, Amazon would be able to add an additional revenue stream during uncertain macroeconomic conditions. Plus, a potential ad tier could have benefits for both consumers and advertisers, according to Ivy Cheung, vp and group partner of integrated investment at UM Worldwide. "From a consumer perspective, there will be a lot more premium content that we'll be able to watch," Cheung said of a potential Prime Video ad tier. "And then from an advertisers perspective, I think it's great because it just gives us the opportunity to reach viewers in different environments." Speaking anonymously, a buyer speculated on how a potential Prime Video ad tier might look, saying that, like most ad tiers, the product could start with 15-second and 30-second pre-roll and mid-roll ads and very little targeting, which would be in the same vein as how Netflix's ad tier went to market in 2022. However, unlike Netflix, which was classically ad-averse before getting into the ad-supported business, Amazon already has valuable infrastructure in place. At the company's NewFronts presentation in May, Amazon announced that its ad-supported streaming TV solutions reach an average monthly U.S. audience of 155 million across Amazon Freevee, Thursday Night Football, Twitch, Fire TV and third-party apps via Amazon Publisher Direct. And those solutions are proving to be effective. Thursday Night Football scores big According to measurement company EDO, ads airing during Amazon's inaugural Thursday Night Football season were 116% more effective than the primetime average. The measurement company added that an advertiser would need to air approximately 39 spots across primetime TV to generate as much engagement as one ad aired during TNF last season. “This would be a smart and potentially must-do move for Amazon to remain competitive for the best programming and to maintain the audience scale required to satisfy advertisers," Kevin Krim, president and CEO of EDO, said in a statement provided to Adweek. "The streaming landscape is evolving at a break-neck pace, and Amazon’s joining a growing field of ad-supported streaming competitors.” But even with the potential benefits, now may not be the right time for a Prime Video ad tier. After all, at its NewFronts presentation, Amazon also announced that more than 100 original Prime Video series will eventually land on Freevee. These titles include Reacher, The Summer I Turned Pretty, The Wheel of Time, Troop Zero and Late Night. If a Prime Video ad tier were on the way, its exclusive content would be its draw. So keeping original titles on Prime Video could be paramount if the company was adding the offering. "It's just one more platform that we're able to watch and we're able to reach a viewer," Cheung said. "I think it is going to be important for us to buy on Amazon Prime if they do roll out with an ad tier, and the reason being is they will have original content that is exclusive to their platform." Additional reporting by Mollie Cahillane.