Amazon PPC

Amazon OTT Advertising: Can Streaming TV Ads Work for You?

Streaming may have changed the way people watch TV, but advertising on your customers’ favorite TV shows is more effective than ever. The retail industry especially is taking advantage of streaming TV ads, in particular with Amazon over-the-top advertising, or Amazon OTT advertising for short. 

In a nutshell, Amazon OTT advertising lets retailers run video ads on streaming services like IMDb TV, Twitch, and Fire TV. But how does it work, and why is it trending now? We answer all your questions below. 

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What is Amazon OTT advertising? 

In general, the term “over-the-top” advertising refers to ads delivered to viewers through streaming TV and other videos. Aside from utilizing popular online content, OTT ads are also more data-driven and easier to target than general advertising. In this article we talk specifically about over-the-top advertising offered by Amazon. . 

Amazon over-the-top advertising (Amazon OTT advertising) is a way for brands, vendors, agencies and general retailers to run video ads on streaming TV. As a form of Amazon advertising, OTT ads let brands reach specific niche audiences based on what they’re watching, regardless of whether the content is streamed on a TV, desktop, or mobile devices. 

At the moment, Amazon OTT advertising is only available in the US and UK. However, it is open to any business, not just Amazon retailers.

Why is Amazon OTT advertising popular now? 

Although Amazon OTT advertising has been around since 2019, it’s really starting to pick up steam in 2022. Why? There’s no real mystery here: Amazon OTT advertising is more popular now because streaming TV as a whole is more popular. 

Based on the latest statistics, it seems the era of cable and satellite TV is coming to an end. According to Amazon’s internal data, more than half of households are “cutting the cord” and canceling their cable or satellite subscriptions. If you consider only 18-34 year-olds, that number jumps to 74%. 

With the overarching trend of TV consumption switching to streaming, it makes sense that companies are looking for advertising that goes where the people are. The other technical advantages, like precision targeting and data utilization, are just icing on the cake. 

How does Amazon OTT advertising work? 

Advertisers can buy Amazon OTT ads through Amazon DSP (demand-side platform). You’re free to specify your target audience, giving streaming TV ads a huge advantage over traditional TV advertising, which is shown to all viewers of a particular program no matter what. 

Moreover, Amazon OTT ads are non-skippable, ensuring they’re viewed start to finish. They’re also presented in a full-screen format so advertisers are free to experiment with better visuals and finer details. Think of them like traditional TV ads, but modified to fit streaming services. 

Users are charged for their Amazon OTT advertising based on impressions, unlike Sponsored Ad campaigns, which charge per click. 

What are the advantages of Amazon OTT advertising? 

Let’s get down to brass tacks: why choose Amazon OTT advertising over other types of advertisements? Here are a few solid reasons to consider adding OTT ads to your marketing budget. 

Precision targeting

Perhaps the biggest advantage of Amazon OTT advertising is getting to hone in on your specific audience. Because Amazon DSP lets you filter who sees your ads, you can choose precisely the type of person likely to buy your products. 

Amazon allows advertisers to choose their audience based on lifestyle, interests, shopping behavior, and more. You can filter by traditional demographics like age, income, education level, etc., or more specific interest groups such as “homeowners.” 

You can even specify shoppers who have browsed certain products. This includes people who have viewed your product page but didn’t purchase, so if strategize correctly, you can use Amazon OTT advertising to increase your Amazon conversion rates. 

On top of that, savvy marketers can cater different campaigns to different audiences simultaneously. For example, you can create separate video ads for young and old audiences, fine-tuning the language and imagery for each group to get the best reactions. You can essentially optimize an individual ad campaign for each distinct customer group you’re targeting. 

Break into new markets

Amazon OTT advertising reaches beyond the Amazon marketplace, including popular channels like IMDb TV and Twitch. Although these viewers aren’t necessary Amazon shoppers, you can still effectively get your name out there among your target demographics.

With the greater reach of Amazon OTT advertising, brands can raise awareness and recognition on new platforms. This makes OTT ads a great solution if you’re wondering how to drive external traffic to your Amazon listing. 

Poach customers from competitors

One of the more interesting audience filters available on Amazon OTT advertising lets you target shoppers who have viewed your competitors’ products, but not purchased anything. Not only is this a direct connection to people interested in your type of products, but also you can take business out of the hands of your rivals, giving you an edge. 

For video ads, this feature is only available on Amazon OTT advertising at the moment. 

Depending on your marketing strategy, this could be the perfect outlet to communicate your value points to on-the-fence shoppers, like mentioning your lowering prices or exclusive features. 

More cost-effective than traditional TV ads

Ironically, as the viewership of traditional TV declines, the cost of advertising rises. With that in mind, it’s kind of a no-brainer to switch to streaming ads: cheaper, more popular, and lots of extra perks like choosing your audience and paying per impression. 

Based on the data, people will continue abandoning cable and satellite TV for streaming services, and it’s looking like traditional TV will never recover. That means streaming TV will only become more popular in the future, so it makes more sense to switch over your advertising sooner rather than later.  

Is Amazon OTT advertising right for you? 

Making a streaming TV ad work for you involves expertise in a variety of different fields. For one thing, you need to understand videography and how to actually make a video that people like. You also need to understand areas like advertising, customer preferences, market positioning, and how to budget your ad spend, not to mention the intricacies of selling on Amazon in general. 

For some brands, that’s a bit overwhelming. Career retailers on Amazon may not have the extra video skills or know-how to run streaming TV ads. Even if they’re willing to try, how much time and money would it take to learn the ropes? 

As a more efficient alternative, more and more Amazon sellers are enlisting services like ours to handle the more nuanced areas for them. Here at AMZ One Step, we’re most known for our Amazon photography, but we also handle plenty of other services such as PPC management, listing optimization, and now Amazon OTT advertising. 

With our team of professional videographers and expert advertisers, we can take care of your OTT ads for you, in whatever style best fits your brand. We’ll handle the video production and even manage the campaign after it’s launched. If you’re not sure whether Amazon OTT advertising will work for you, schedule a free consultation with us now and we’ll answer any questions you have. 

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