Amazon Flexes Formidable Ad-Supported Muscle At NewFronts
Sometimes it’s the little things — like all the little things — your giant company does in a space where it’s not as well known that make a difference.
Such was the surprising oomph behind Amazon’s NewFronts presentation. Its many, many, many ad-supported outlets showcased how they can help brands connect and cash in from millions and millions of engaged customers.
There have been plenty of distractions recently on the subscription side of the video-streaming business. (See also, Netflix share-price collapse, CNN+ rapid death, industry-wide angst, suddenly sour investors). But the ad-supported side generally looks well placed to play a big role going forward as inflation, returns to the office, and a saturating market eat away at adoption and churn. The NewFronts only helped ratify that impression.
From the looks of it, Amazon is (ahem) primed. It demonstrated in a 90-minute presentation Tuesday outlet after Amazon-owned unit designed to work with brands. And don’t forget, Amazon is pitching from strength here. It own the biggest e-commerce marketplace. It owns the Fire family of OEM Smart TVS and other devices. And it runs an ad business that generated $31.2 billion last year, third behind only Facebook and Alphabet.
The event at New York’s Lincoln Center, hosted by producer/actor Amy Poehler, provided plenty for marketers to drool over. Few announcements counted as truly “new.” But the imposing lineup certainly made clear Amazon’s point: Video’s ad-driven future is closing fast and Amazon is well positioned to take advantage:
The imminent start of that exclusive 11-year Thursday night NFL deal. It’s a big step beyond the shared arrangement with NFL.com and Fox of the past few years, or undernourished previous deals with Yahoo and Twitter. Just imagine Black Friday kicking off on Amazon alongside Turkey Day’s evening game. The first streamcast is Sept. 15, between high-flying division rivals Kansas City and the Los Angeles Chargers.
Newly renamed Freevee (formerly, FreeDive and IMDb TV... will this moniker stick any longer?) is launching more original programming. This follows rollouts from ad-supported competitors Tubi and Roku. (Also worth noting—the Fox-owned Tubi on demand service is expanding to add FAST entertainment channels). Freevee also licensed a handful of Disney films, including Deadpool and Logan. It also upped its programming inventory to 75 channels, including one built around sitcom Kim’s Convenience and the comedy chestnut Kids In the Hall.
Live-streaming site Twitch is adding still more ways for audiences to engage with brands by way of its online stars. One example: “For Twitch, With Twitch,” will provide curated “creator-driven” content designed to connect fans and brands. Another new option: “co-op drops” where a brand sponsors in-stream giveaways to a creator’s fan base. Though Poehler joked that, Twitch is “the best place to watch people watch people watch people play videogames!” But Twitch is also a great place to connect with millions of young videogame fans who typically are difficult to reach.
Virtual Product Placement (VPP) technology allows the company to substitute a different brand’s material onto objects in an existing show. Think swapping out Pepsi on a Coke can, or inserting a different ad on a billboard in the background. Henrik Bastin, executive producer of one of Freevee’s originals Bosch: Legacy, called it a “game-changer” for creators and brands.
Don’t forget that just-closed deal for MGM’s vast library of thousands of movies and TV episodes. Most are licensed around the globe for years to come. But expect some (and eventually their spinoffs/sequels/reboots) to filter onto Freevee and elsewhere, providing still more inventory.
The Amazon Marketing Cloud, its “end-to-end planning, measurement and optimization solution.”
Amazon is so big, and has its hands in so many other really big sectors, that the media largely ignored its NewFronts presentation. Instead, it focused this week on other company news, like union organizing in more warehouses, and the closure of a few Whole Foods outlets.
Amazon Prime Video, meanwhile, remains largely ad free, and likely will remain so (other than with the NFL and other live sports). But streaming’s evolving reality means services better have a sturdy advertising-based option in its toolbox to reach the broadest possible audience.
World’s Richest Company Apple might avoid that necessity, though its forays into live sports mean even it will be generating millions of dollars in ad revenue every year, especially if it finally nabs that rumored deal for the NFL’s Sunday Ticket (perhaps to debut during the company’s earnings call in a couple of weeks?).
For everyone else, Amazon’s second-ever NewFronts was an imposing reminder of one thing. The ad-supported streaming sector won’t be any easier to navigate than subscriptions. Even when you have all of Amazon’s ad-supported tributaries feeding into the bottom line.