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Why Businesses should transition to Amazon OTT Advertising

Over The Top (OTT) media service has taken the world by storm ever since Netflix decided to go OTT in 2007. If you are not familiar with the term, it means streaming media services offered directly to the audience via the internet.

OTT platforms are enjoying their time in the spotlight, as most cinema halls are closed due to the COVID-19 restrictions. With very few entertainment options available during this time, the consumption of OTT services has gone through the roof.

Major OTT players like Amazon Prime and Netflix witnessed a 65% and 67% burst in subscriptions. The OTT industry is predicted to have more than 500 million viewers by 2022. So for a business, it makes perfect sense to leverage OTT for advertising. 

What is OTT advertising?

OTT (over-the-top) advertisement is advertising that is distributed directly to viewers over the Internet via streaming video services or devices such as smart or connected TVs (CTV).

The term “over-the-top” is derived from the ability to circumvent conventional TV providers that regulate media delivery, allowing marketers the ability to reach their viewers directly.

Just as the exponential growth of streaming platforms challenges the conventional TV industry, OTT advertising is now reshaping the paid media landscape.

How does Amazon OTT advertising work?

To understand how Amazon OTT advertising works, you have to first understand what Amazon DSP is. Amazon DSP is a demand-side platform that enables advertisers to programmatically buy display, video, and audio ads both on and off Amazon.

Programmatic advertising uses data to determine which digital advertising spaces to purchase and how much to pay for them. Amazon OTT advertising uses Amazon’s DSP network to place ads across Amazon’s streaming services.

Amazon OTT advertising lets marketers utilize Amazon DSP’s viewer targeting features to optimize their advertising. These are non-skippable full-screen format ads.

It is important to note that these are non-clickable ads, so advertising metrics must focus on ad impressions rather than click-through rates or direct conversions.

Amazon Fire TV has 37 million active monthly users and these ads will reach them every day. In addition to Prime Video, Fire TV features over 50 ad-supported third-party apps. Wherein each of these apps offers advertisers more opportunities to reach their target audience through OTT advertising.

Advantages of Amazon OTT advertising over Linear TV advertising

1. Younger, wealthier, more engaging audience

One of the most significant advantages of Amazon OTT advertising is your company’s ability to reach a younger, wealthier, and more engaging audience who spend more time-consuming OTT streaming services than traditional TV.

Over 90% of Amazon’s ad-supported OTT audience watch almost two hours of streaming content every day. With over 55 million monthly viewers of ad-supported OTT content on Amazon, you engage with an audience that is becoming more difficult to reach with linear TV.

2. Better data transparency to help you target ads

While traditional TV consumption metrics were based on large sample sizes and extracted interpretive data, OTT advertising offers far more transparency as to who is watching the content delivered.

You’ll also be able to know what they’re watching when they’re watching it, and on what device they’re watching it. This allows you to optimize targeting your ads to get the highest rates of engagement.

3. Cheaper than TV ads

As the consumption of traditional media such as TV has decreased, the cost of advertising spots has increased considerably. Amazon Publisher Services (APS) removes intermediaries and their fees and integrates directly with OTT apps.

This lets advertisers see exactly what they’re paying for. Moreover, it is easier to track the success of OTT ads than traditional TV advertising.

4. Monitor your viewership in real-time

OTT advertising combines the strong impact of large screen TV ads with the advantages of fact-driven real-time data of online advertising.

You have the ability to retrieve real-time viewing stats, geolocation, device types, channels, and more.

5. More control over your content means more ROI

You can manage your ad setting in real-time through your advertiser account and make changes at any time. Whereas, in TV advertising, you have to depend on the TV networks and stations.

TV network operations are complicated and getting your content across can be time-consuming and hard work.

6. Consumer-centric

Linear TV requires the viewer to tune in to when their favorite program is scheduled. Whereas OTT allows the viewer to watch their favorite program whenever and wherever they want.

When a user logs into their favorite streaming service, they’re choosing to be entertained and consume video at that moment. Hence, they are more receptive to viewing an ad before their main feature.

What sets Amazon OTT advertising apart from other OTT advertising?

1. Advanced targeting

What really sets Amazon OTT advertising apart is Amazon’s long history as an online shopping site with a wealth of customer data available from its expanding customer base.

You can use Amazon’s first-party data to target your ads according to the product interest and buying behavior of the consumer.

When you combine the powerful analytics of OTT advertising with Amazon’s hyper-engaged ready-to-buy users, Amazon OTT advertising holds a unique advantage.

2. Ad conquesting

Currently unique to Amazon OTT advertising. This feature lets you target audiences who have viewed your competitor’s products. This feature can be used by all brands regardless of whether they are selling on Amazon or not.

Coupled with premium video content, this feature has the potential to convince customers in the consideration stage to buy your product.

3. Access to unreachable audiences

Amazon helps reach audiences that can no longer be accessed through traditional means because of an increase in people canceling their TV subscriptions.

Current users of OTT services have reached over 180 million, which accounts for well more than half the US population. Amazon Prime represents a major slice.

According to Forbes, in 2021, the number of Amazon Prime Video viewers is expected to reach one-third of the US population.

Additionally, Amazon ads are non-skippable and can bypass ad-blockers that roughly one-quarter of internet users use.

4. Video Creative Builder

For small and midsize businesses that may not have any creative assets, Amazon helps them build their own video ads for Amazon OTT advertising through the new Video Creative Builder.

Amazon provides a collection of video assets and templates to create multiple video ads. It is important to note that this is still in the BETA version.

On the other hand, SMB’s could turn to Rocketium, a creative automation platform to easily create video ads for Amazon OTT advertising.

Tips to effectively use Amazon OTT advertising

1. Set up a valid measurement plan

Amazon Ott ads are non-clickable ads. So it is critical you measure ad impressions rather than click-through rates or direct conversions. Advertisers must optimize the ads to track the various IDs across different devices.

2. Set specific goals and KPIs

With Amazon Audience Solutions, you can use a data-driven framework for understanding your target audiences. Get specific with your buyer persona, right down to the shows that they are likely to watch.

3. Produce and manage your video ad campaign

Once you have planned a clear advertising strategy for Amazon OTT advertising, you may create your video ads. You could use Amazon’s Video Creative Builder or other software like Rocketium.

After creating the videos, it is important to organize and manage them. Rocketium provides a connected platform for design and business teams to create and manage design projects.


Amazon is an important cornerstone of the modern world with its hands in eCommerce, cloud computing, digital streaming, and artificial intelligence. Amazon OTT advertising along with various analytical tools provides the advertiser its huge consumer data to optimize ads and interact with its hyper-engaged ready-to-buy users.

For a business, there aren’t many better options as Amazon OTT advertising increases brand awareness and targets the audience in previously inconceivable ways. Amazon OTT advertising is the present and future of advertising and businesses should look to make this switch soon. 

Moreover, marketing campaigns that already use digital ads should have no trouble transitioning to Amazon OTT advertising as it is the same concept, but you’ll need to focus on video content that is professionally done.

There are many businesses not favorable to digital marketing and who stick with traditional TV consuming audiences for gaining leads and facilitating conversions. OTT streaming services provide a smooth transition to OTT advertising as they are viewed on the big screen like traditional TV commercials with the benefits of data-driven targeting of online advertising. Unlike throwing spaghetti on the wall and hoping one sticks type of advertising with traditional TV. 

Rethin Vipinraj

Rethin Vipinraj

Content Marketing at Rocketium
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