Unlocking New Audiences: Amazon Sponsored TV Ads Arrive in the UK

At Unboxed 2023 Amazon introduced Sponsored TV, a brand-new self-service advertising format with no minimum spend requirements or upfront commitments and, after initially being launched in the US, this new Amazon Ad format has now begun rollout in the UK. As described by Amazon, “Sponsored TV is a Streaming TV ad solution for brands of any size to connect with new customers in their living rooms – even if they have never advertised on TV before.”

In this blog we explore what Sponsored TV ads bring to the table, what sets them apart and what the benefits are. We also dive into the targeting options, best practices and how to incorporate them as part of a full funnel strategy.

Sponsored TV vs DSP:

Sponsored TV ads offer a whole new way to reach streaming audiences across platforms such as Freevee, Twitch and other Fire TV apps, leveraging Amazon data for targeted ad delivery. Until now, the only way to capture streaming audiences on Amazon was through DSP, but felt out of reach for many brands due to a minimum campaign spend of around £50,000. Sponsored TV ads have been introduced with no minimum spend with the ability to be built in the Ad Console. 

DSP still has its own advantages though, with access to additional audiences, inventory and controls These ads can be videos up to 30 seconds long or static images, shown during natural breaks in streaming content. 

Are Sponsored TV ads shoppable?

Sponsored TV ads are eligible for a selection of interactive experiences including QR codes, clickable ads on Twitch and remote interactive ads. Remote interactive ads apply an interactive “Press OK to add to basket” overlay so that viewers can add the advertised products to their Amazon carts to revisit later.

What are the benefits of Sponsored TV ads?

1. No minimum spend requirements or upfront commitments. Unlike DSP, here is no minimum spend requirement, so you can pick a budget that suits your business and your goals. With that in mind, there is some suggestion that no less than £100 per day should be allocated to a Sponsored TV campaign. 
2. First-party targeting. Amazon’s first-party data is powered by shopping and streaming signals which allow for hyper-precise targeting therefore increasing ad effectiveness.
3. Reach millions of viewers. With two-thirds of Brits (65%) having a streaming subscription service (around 18.8 million households) and almost half of Brits (45%) using 2 or more streaming subscription services (around 13.3 million households) *, there is an incredible amount of opportunity to capture new customers.
4. Sponsored Ad campaigns are retail aware. These campaigns won’t spend on ads for out-of-stock products, meaning that only in stock products will be shown to viewers to prevent wasted spend. 

Utilising targeting with Sponsored TV ads

Advertisers can reach audiences through Sponsored TV using “Content Interests” or “In-market Categories”. Content Interest audiences are users who are likely to be interested in specific types of content such as dramas or music videos. 

In-market categories are collections of people that are interested in products of categories sold on Amazon, such as fridge-freezers or men’s shoes. Look-back windows for content interests and in-market categories are up to 30 days.

As described by Amazon, “In-market audiences allow advertisers to engage audiences who are “in-the-aisle” and have been recently shopping for products in a given category. Advertisers that sell their products on the Amazon store can reach audiences in the same category as their advertised products to drive consideration, as well as try out entirely new segments to help drive product awareness.”

As a best practice set up, it’s recommended that advertisers trial around five audiences initially before making optimisation decisions based on the data. 

Do Sponsored TV ads operate on a CPC basis?

No! Unlike other Sponsored ad formats on Amazon, Sponsored TV ads use a CPM system meaning that you pay per thousand impressions.  

According to Amazon, CPMs typically range from £25-30, but rather than setting your bid straight at the average range it’s best to start low, review the data and adjust bids and/or audience targeting where necessary. 

Creative best-practices

• Use voiceover or dialogue for no more than one-third of the video.

• Ensure people are on screen for at least nine seconds of the ad.

• End your ad with a four-second end card to summarise your message. 

Amazon has suggested much greater performance for advertisers that follow these best practices.

Incorporating Sponsored TV as part of a Full Funnel strategy 

Amazon’s Sponsored TV ads open up a whole new opportunity as part of a full funnel strategy. These formats give advertisers the ability to utilise Amazon’s first-party audience data to target those who have shown genuine interests and guide them down the funnel before purchase. Capture new audiences through Sponsored TV ads, before retargeting them with Sponsored Product, Sponsored Brand or Sponsored Display ads. 

Are there any restrictions? 

While Sponsored TV ads are more accessible than DSP ads, some product categories are currently ineligible under this format:

• Health and personal care items

• Adult products

• Used or refurbished goods

• Products in closed categories

Conclusion 

Amazon’s Sponsored TV Ads offer an exciting opportunity for advertisers to connect with new audiences. With no minimum spend requirements, brands can leverage this self-service advertising format to reach streaming viewers across platforms like Freevee and Twitch. The benefits include precise targeting, retail-aware campaigns, and the ability to capture millions of viewers. 

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