December 14, 2018

Written by Samantha Coconato

Advertiser Q&A: Amazon Video Ads

Earlier this year, advertisers complained in a Digiday article that Amazon lacked a robust video ad platform, which made Amazon less attractive to Facebook and Google as an ad platform. Amazon must have been listening. The company launched video ads as part of a broader reorganization of its ad offerings under Amazon Advertising. In recent weeks, I’ve been blogging about various Amazon Advertising products. Here’s a brief overview of video ads to help you understand them.

1 What is Amazon’s Video Advertising Solution?

Amazon’s video offerings are very similar to their display offering in the sense that they use specific audiences with custom creatives to target people on Amazon as well as Amazon-owned and third-party sites (such as Twitch) and devices. Unlike the display offerings, there isn’t a self-managed option – so you must work with a team throughout the whole process.

2 Why Would an Advertiser Use Video Ads?

Video ads are a great way to tell a story. They complement display ads by sharing the same sentiments but with the ability to expand beyond a single image to show the entire story. Video ads are mainly seen as a branding play, but by using highly specific targeting available on Amazon, video ads can also drive people to complete a purchase.

As reported in Digiday, Lego tested video ads in search results on the Amazon app in the United States in 2017. And Lego liked what it saw. James Poulter, Lego’s head of emerging platforms and partnerships, told Digiday, “The test reiterated the importance video and rich media can have when it’s part of the buying journey, especially when 70 percent of all purchase journeys start on Amazon. Surfacing your content in the same place that people are having those journeys has the potential to widen the funnel.”

3 Are There Any Limitations to Video Ads?

As with Amazon’s Display ads, the main limitation with Amazon video ads is the price. Amazon requires a $35,000 budget for both video and display ad campaigns. This hefty price prevents smaller advertisers from being able to test out these advertising features.

4 How Can Advertisers Maximize the Value of Video Ads?

Maximizing the value of video ads requires a goal, good story telling, and smart targeting.

  • Goals – Since most advertisers on Amazon are selling a product, getting a consumer to complete a purchase is the most obvious goal. Generating brand awareness and recall is another goal that would work well within the Amazon universe.
  • Stories – Visually show someone how purchasing a product will solve a problem for them. Walk them through a product demonstration, but without it feeling like a sales pitch. Showcase testimonials and reviews. Create an instructional video illustrating specific features of a product.
  • Targeting – Leverage Amazon’s targeting options to find highly relevant audiences. Take what you know about your customer and match that up with products they buy and shows and videos they watch. Be very specific to the product you sell.

If you’re interested in Amazon video ads, but don’t know where to start or need assistance strategizing and managing them, please reach out to us at True Interactive.

Here are the other posts in my series about Amazon: 

Advertiser Q&A: Amazon Display Ads 

Advertiser Q&A: Amazon Sponsored Ads