Seamus Brennan: why Amazon’s AVOD launch could possibly be an important TV second for years

The headline could also be putting, there’s little doubt that the launch of Amazon’s ad-funded mannequin in February has set tongues wagging.

Not like its rivals, Amazon took the intelligent method of shifting its 200 million subscribers, of which 9.7 million are within the UK, to ad-funded viewing with an opt-out versus tiered method, as we’ve seen with the likes of Netflix and Disney+.

While it might be seen as a courageous transfer by some, there’s little doubt that it marks a pivotal second in advertising – not solely when it comes to the affect it’s going to have on Amazon’s personal providers, but in addition on that of its rivals.

What impact will this have on TV promoting?

It definitely factors in the direction of a future the place AVOD (ad-supported video on demand) mixed with CTV may appeal to the biggest share of total TV promoting funding. In different phrases, the additional demise of linear TV.

It could additionally push the opposite streaming giants to shift their enterprise fashions from subscription to AVOD, or look to steadiness them in favour of AVOD, if audiences settle for this manner of viewing.

Will retail media grow to be an integral part of streamed TV?

The concept of powering addressable TV with retail knowledge is already evident within the US with Walmart Join (under) teaming up with Roku, Google’s DV360, the Commerce Desk and TikTok to construct an AVOD proposition.

There’s additionally proof of this within the UK market with ITV AdLabs Matchmaker retail media resolution with Tesco, and Boots and Channel 4’s All4 union with Nectar360.

However the place Amazon will stand head and shoulders above the remainder is within the high quality of its first celebration knowledge for each activation and measurement. With a complicated tech ecosystem, and the good thing about correct knowledge, manufacturers can be assured in who they’re focusing on primarily based on their pursuits, purchasing patterns, way of life and life stage.

It can additionally enable a route in for smaller and midsize manufacturers who might not have had the capability to take a position strategically and effectively in addressable TV earlier than.

For endemic manufacturers working inside Amazon Internet Companies, the attraction lies in having the ability to tie again conversion to a big viewers TV marketing campaign throughout big-ticket TV and movie content material that’s additionally model secure. A proposition that has not been obtainable to them beforehand.

Will we see a rebalance when it comes to digital media funding?

There’s no denying that Amazon’s AVOD proposition has come at a crucial second which may, certainly, see a rebalance in digital media funding. This might consequence within the creation of different choices to the dominant performance-led tech platforms.

With knowledge partnerships changing into a core element of CTV, platforms can be eager to capitalise on the retail media growth.
What is obvious is that Amazon can be seen as a ‘should purchase’ for media patrons with its mixture of AVOD viewers supply, premium big-screen and cell content material, and proprietary addressable knowledge with superior measurement.

As TV steadily converges into the digital advertising realm, vital funding in dynamic artistic purposes coupled with the incorporation of AI, marks an thrilling time. Furthermore, that is all occurring amidst the deprecation of the third-party cookie and the expansion of retail media as a major advertising drive.

Whether or not we’ll see highly effective digital promoting options to Meta and Google emerge stays to be seen. However the fusion of retail knowledge into addressable TV at scale definitely seems to be a profitable system.

Seamus Brennan is director of partnerships at Kepler.