Amazon's foray into the world of video advertising is gaining serious momentum, attracting talent and ad dollars from traditional TV networks. Since launching ads on Prime Video in January, the e-commerce giant has captured a significant portion of the advertising market, largely thanks to its expansive sports offerings, diverse advertising products, and the potential to link ads with product sales.
This success has propelled Amazon ahead of established TV players like Netflix, whose ad venture has been comparatively slow and has already seen two changes in ad leadership.
To entice TV advertisers, who might primarily see Amazon as a performance-based advertising platform, the company has been aggressively hiring top-tier TV advertising professionals.
Among the notable additions are:
Krishan Bhatia, former NBCU veteran, now VP of Global Video Advertising, who was previously considered a strong candidate to lead all of NBCU advertising.
Jenny Burke, another experienced NBCU executive with a 17-year tenure, who has joined Amazon as well.
David Amodio, who joined from Channel 4 in the UK, now heading video sales specialists for Northern Europe.
Scott Comstock, formerly from NBCU, now leading US Video Strategy and GTM at Amazon Advertising.
Jeremy Helfand, previously with Disney, now VP and global head of advertising for Prime Video.
Suzy Ioannou, a senior video sales specialist, who joined from Disney.
Anthony Marciano, director of finance for Prime Video and Freevee advertising, also from Disney.
Jordan Neidig, senior video sales specialist, who came from TikTok.
Jeff Westfall, another senior video sales specialist, who joined from AMC Networks.
These appointments reflect Amazon's commitment to building a robust video ad business. A holding company executive, with a dozen clients advertising on Prime Video, has expressed positive feedback about the experience. They were particularly impressed with how Amazon communicated the advertising change to viewers and ensured advertisers received the ad impressions they paid for.
"It says they are willing to be a bigger player in the TV space," the executive stated, requesting anonymity to speak openly about the relationship.
Amazon's financial performance in the video ad space will be closely watched when the company reports its earnings on August 1st. A recent survey by Wedbush Securities revealed that 91% of advertisers intend to increase their spending on Amazon in the third quarter, compared to 87% in the second quarter.
However, Amazon's video ad ambitions are not without challenges. Integrating video ad sales into a sprawling ads business and overall company, where advertising is still a relatively small component, poses a significant hurdle. Ad buyers also navigate multiple sales teams within Amazon, which can create complexities.
Advertisers accustomed to buying TV ads have also had to adapt to Amazon's unique operating model. Some complained that Amazon did not offer credit for "Thursday Night Football" ad spending during Prime Video ad negotiations, a standard practice with legacy TV sellers like NBC and Disney.
Furthermore, advertisers generally want Amazon to share more viewer data. Questions have arisen about the actual viewership of Prime Video, which is bundled with the Prime membership, primarily known for its shipping benefits.
Despite these challenges, Amazon's commitment to building a formidable video ad business is evident. The company's aggressive recruitment of seasoned TV advertising professionals, coupled with positive initial advertiser feedback and a surge in ad spending, suggest that Amazon is poised to become a major player in the evolving world of video advertising.