Amazon kicked off the new year by filling its Prime Video service with ads. Now, in the face of user complaints, Amazon is doubling down with a slew of “interactive” ads. These ads extend beyond the normal commercial break and will appear on the pause menu.
Interactive pause ads offer an “extended engagement opportunity beyond a typical ad break.” You pause a show or movie, and a product appears on-screen with “buy now” and “learn more” buttons. Amazon says that these ads will sit on the pause menu “for as long as the content is paused.”
Things get a little weird with Amazon’s “brand trivia ads,” which are tailored to specific shows, movies, and live sports content. Basically, these ads will hook customers with an entertaining trivia question and create a path to shopping on Amazon. Trivia ads may also offer special “rewards,” such as Amazon account credits, to encourage user interaction. It’s unclear whether these ads will interrupt your programming or simply appear during the ad break.
“Interactive pause ads, which enable customers to discover and engage with brands when they decide to pause the show or movie they’re streaming. When viewers press pause on their living-room remote, they will see a translucent ad featuring brand messaging and imagery, along with an “Add to Cart” and “Learn More” creative overlay. "
I should note that Amazon has a unique advantage in the ad-streaming space—it knows a lot about its customers. The Amazon storefront collects data based on how you shop, Alexa smart home products log every command you make, and over 25% of the web ispowered by AWScloud services. Targeted advertising, which leverages private user data, is a cash cow. That’s why Amazon reported$46.91 billionin advertising revenue last year.
For reference, a standalone Prime Video subscription is currently $9 a month. Customers who want ad-free Prime Video must pay an extra $3, which brings the service to $12 a month. Admittedly, this is cheaper than most other ad-free streaming services, but it’s nearly the same price as a full-fat Amazon Prime membership. Amazon Prime is currently $15 a month and includes ad-supported Prime Video.