We’ve recently discussed how video ads are growing in popularity among millennials and replacing static ads as the most effective tool to turn potential audiences into active customers.

And, with mobile video ad spend on track to nearly double by 2022, it comes as no surprise that Amazon has started to integrate video ads into its iOS smartphone shopping app to increase revenue and improve the user experience.

So, what does this news mean for advertisers, and how should you prepare your strategy to jump on the Amazon video ad bandwagon? Let’s take a look.

Why Do Videos Ads on Amazon Matter?

First, let’s understand the reasons why in-app video ads could be a major opportunity for advertisers:

● Massive Potential Reach:

Amazon’s reach is huge, with their web platform driving up to 50% of all US online sales, and their mobile app ranking in as tenth most popular app in the US for 2018. This gives advertisers a strong chance of reaching new potential customers on a channel that’s generally less saturated with ads.

● Primary Advertising Platform:

Amazon continues to dominate the advertising market. In fact, today they’re even projected to overtake Google. While shoppers continue to turn to Amazon; Google, Facebook, and YouTube video ads risk losing steam. This would make Amazon the primary platform for advertisers looking invest their ad dollars in video.

● Highly Targeted:

Amazon video ads are served based on customer searches. This ensures that the advertisements effectively match demonstrated user interests, and significantly increases the likelihood of a conversion.

How Can Advertisers Jump on Board?

It’s no question that Amazon offers advertisers a massive platform to reach potential new users. In fact, during Q4 2018, Amazon’s ad business reached over $3 billion. And, now that the brand has introduced in-app video ads, advertisers are excited to explore how this new avenue can further extend their reach on the platform.

To get a piece of the pie, Amazon has offered a minimum spend requirement, coming in at about $35,000 and being sold through the company’s in-house sales team, Amazon Media Group. Spend will be measured on a Cost Per View model, and grants advertisers 5 cents per view to run the ad for 60 days.

Who Will Benefit from Amazon’s In-App Video Ads?

Due to the hefty minimum spend, big name brands will be the first to take advantage of the new feature. For starters, Gillette and Lamps Plus have already tested out the new ad format.

However, that’s not to say that smaller brands shouldn’t keep an eye on the feature to see when it opens its doors to advertisers with budgets at any level.

Interested in how to create a successful mobile video ad and stay on top of emerging trends? Shoot us a message at info@taptica.com.