Amazon Prime Video is set to increase its advertising presence in 2025, signaling a potential shake-up in the streaming advertising market. This move comes after the platform introduced ads for all Prime subscribers earlier this year, a decision that instantly positioned it as the world’s largest ad-supported subscription streaming service.
While the exact nature of the ad expansion remains unclear, it could involve increasing ad slots, introducing new ad formats like pause ads and sponsorships, or both. Kelly Day, an Amazon advertising executive, confirmed to the Financial Times that Prime Video’s ad load will “ramp up a little bit” next year.
Despite the increase, Amazon assured The Hollywood Reporter that its ad load will remain “meaningfully fewer” than traditional TV and other streaming competitors. However, any expansion from the e-commerce giant is likely to cause concern for rivals, especially given Prime Video’s growing viewership, fueled by popular shows like Fallout and live sports like NFL Thursday Night Football.
When Amazon first introduced ads on Prime Video, it reportedly impacted the broader streaming ad market, with some competitors missing internal targets due to the influx of available inventory. A similar scenario could unfold in 2025, particularly with Prime Video’s strong position in live sports.
Thursday Night Football on Prime Video is averaging nearly 15 million viewers per game this season, a 25% increase from last year. This success has solidified Prime Video’s ability to attract a mass audience, making it an even more attractive platform for advertisers. The company reports that over 50 new brands have joined as sponsors this season, alongside returning heavyweights like Verizon and State Farm.
Amazon is also leveraging its e-commerce strengths by introducing shoppable and interactive ads during games, further expanding its advertising capabilities by bringing hem to the Fire TV home screen.
The addition of NBA games to Prime Video next year will further amplify its advertising potential, offering a wealth of opportunities for brands seeking to reach a passionate sports audience. Amazon is also working on a possible Election Night special with Brian Williams that could also be a new way to expand its advertising business.
Amazon’s advertising business is already booming, with Q2 ad revenue reaching $12.7 billion, a 20% year-over-year increase, according to The Information. While its retail business remains the primary driver, Prime Video is poised to become a significant growth engine, fueled by live sports, original content, innovative ad formats, and now, an expanded ad load.
This move by Amazon underscores the growing importance of advertising in the streaming landscape. As competition intensifies and content costs rise, platforms are increasingly relying on advertising revenue to sustain their growth and profitability. Prime Video’s aggressive approach could set a new standard for the industry, forcing competitors to adapt and innovate to stay ahead in the advertising game.