Using Video Ads With Amazon OTT Advertising

  • #Scale Insights Team
amazon ott advertising amazon ppc campaign strategy
Using Video Ads With Amazon OTT Advertising

With TV's decline, advertisers are turning to Amazon's Over-the-top (OTT) advertising to reach streaming audiences. This method leverages data for targeted, full-screen, and non-skippable ads on devices like smart TVs and phones.

It's ideal for Amazon sellers aiming to engage Prime members and users on Amazon streaming devices. So if you want to learn about Amazon OTT, read on to create impactful OTT ads that ensure visibility and relevance in a crowded digital space.

Ever wanted to see your own product on TV? Amazon's OTT ads might be the easiest way to do it. 

What Is Amazon OTT Advertising?

Amazon OTT (Over-the-Top) advertising allows you to present your brand's video ads within streaming content on platforms such as Amazon Fire TV, Twitch, IMDb TV, and other devices and services.

Unlike traditional TV, Amazon OTT ads bring the advantage of detailed targeting and measurable impact directly to viewers over the internet. You can reach potential customers who have shifted from cable TV to streaming services, increasing your ad's relevance and resonance with your target demographic.

The Role of Amazon DSP

Amazon DSP lets you programmatically buy video ad placements based on rich Amazon shopper data. It facilitates a connection between your Amazon OTT ads and the specific audience that is likely to be interested in your products. Moreover, it allows for retargeting, reaching viewers who have already shown interest in similar products or categories.

Ad Types and Formats on Amazon OTT

Amazon OTT offers a variety of ad types and formats tailored to fit your campaign goals:

  • In-Stream Video Ads: These are non-skippable and play before, during, or after the streamed content.

  • Interactive Ads: These invite users to engage with the ad, creating a more immersive experience.

  • Outstream Video Ads: Shown outside of a video stream, they appear on Amazon-owned sites or apps.

Each format serves different purposes, allowing you to craft an Amazon OTT ad campaign that aligns with your marketing objectives and, importantly, resonates with the Amazon audience.

The Advantages of OTT Advertising

1. Broad Reach and Targeted Audiences

With OTT advertising, you can access a broad spectrum of viewers across various platforms. It can deliver personalized content to audience segments based on specific demographics. For instance, if your product targets young tech enthusiasts, you can place your ads on streams likely to reach that group, ensuring your message resonates with the right people.

2. Data-Driven Insights

Data is king in digital marketing, and OTT platforms provide a rich source. You'll receive detailed audience insights, such as viewing habits and preferences, which can inform your future advertising strategies.

These insights can help you tailor your content so it's more likely to engage your target audience and set the foundation for a powerful, data-driven campaign.

3. Engagement and Brand Awareness

OTT platforms excel at keeping viewers engaged with fewer ad interruptions, leading to higher ad recall. This increased engagement means your ads can contribute significantly to brand awareness.

This can help your brand gain prominence as customers watch their favorite series on Fire TV or stream a live event on Twitch, with your ad making a strategic appearance amidst the content.

Amazon's OTT Ecosystem

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With a variety of platforms under its belt, Amazon provides diverse advertising opportunities to reach potential customers.

Amazon Prime Video

With Amazon Prime Video, your ads can appear alongside popular movies, TV shows, and exclusive Amazon Originals. Prime Video's extensive reach, bolstered by Amazon Prime memberships, enables you to showcase your products to a large and engaged audience.

Additionally, Fire TV – Amazon's streaming media player – further extends this reach, placing your ads directly in the living room of consumers.

IMDb TV and Freevee

Your brand can benefit from Amazon's ad-supported streaming services like IMDb TV and Freevee (formerly known as IMDb Freedive).

These platforms offer free streaming video services with ads, providing you with additional touchpoints to capture the attention of potential customers who are not subscribed to Amazon Prime, amplifying your reach without the need for a Prime membership.

Twitch and Live Sports

Engage with a younger, tech-savvy demographic through Twitch, a live streaming platform popular for gaming that has expanded into other content categories such as music, lifestyle, and talk shows.

Moreover, Thursday Night Football and other live sports on Amazon Prime Video present unique opportunities for you to place your products in front of sports fans during high-viewership events, combining the excitement of live sports with the targeted capabilities of Amazon's OTT advertising.

Marketing Strategies for OTT Advertising

When diving into OTT advertising on Amazon, you'll want to finely tune your approaches in targeting and crafting video content to captivate your audience and drive sales.

Targeting and Segmentation

Precise targeting and segmentation are crucial to maximize your OTT campaign's effectiveness. By leveraging Amazon's rich customer data, you can narrow down your target audience based on their interests, purchase history, and viewing habits.

  • Demographic Targeting: Focus on age, gender, and income level to promote relevance.

  • Behavioral Targeting: Use past shopping behaviors to predict future interest in your products.

Amazon allows you to utilize tools like Sponsored Products for driving specific product sales or Sponsored Brands for building awareness.

Creating Compelling Video Content

Your video content is the centerpiece of your OTT advertising efforts. It should be tailored to not only grab attention but also to convey your brand's message effectively.

  • Engage with a Story: Weave your product into a narrative that resonates with your audience.

  • Call to Action (CTA): Make it clear what steps viewers should take next, whether it's visiting a website or making a purchase.

For products, demonstrations can be powerful; for brands, lifestyle videos showcasing the brand's identity can foster a deeper connection. Utilize Sponsored Display ads to retarget viewers who have shown interest in your content.

Optimizing OTT Ad Performance

To effectively utilize OTT advertising on Amazon, it’s essential to hone in on the right KPIs and understand how they link to brand lift and sales.

Key Performance Indicators (KPIs)

Your OTT ad performance can be closely monitored by identifying and measuring Key Performance Indicators (KPIs) specific to your goals. These might include:

  • View-through rate (VTR): Helps gauge the percentage of impressions that were watched through to completion.

  • Click-through rate (CTR): Indicates the effectiveness of the ad in prompting a viewer response or visit to your product page.

Regular assessment of these KPIs facilitates the optimization of ad content and spending, ensuring you allocate your budget effectively and make data-driven decisions to enhance performance.

Measuring Brand Lift and Sales Attribution

Assessing the impact of your Amazon OTT ads involves measuring:

  • Brand Lift: This gauges the positive change in your audience's awareness and perceptions about your brand post-campaign. Surveys and pre/post-campaign analysis are commonly used.

  • Sales Attribution: Understanding how your OTT ads contribute to sales is crucial. Sales attribution models can pinpoint which ads lead to conversions, helping you understand your return on Ad Spending.

Tools like Amazon's analytics can provide you with detailed performance reports. Remember to iterate on your approach as you gather more data to keep your OTT advertising sharp and effective.

Barriers to OTT Advertising

OTT advertising on platforms like Amazon presents unique opportunities for reaching a broad audience, especially for Amazon sellers. However, you may encounter certain barriers that can affect your advertising strategy.

Possible Challenges and Cons

High Costs: Starting an OTT advertising campaign on Amazon or other streaming platforms can require a significant investment. Unlike traditional pay-per-click models, OTT ads often come with high upfront costs. You must be prepared for the financial commitment that OTT advertising requires.

Example: A high-quality video ad, necessary for a successful OTT campaign, can have production costs ranging from several thousand to hundreds of thousands of dollars, depending on the complexity and production value.

  • Targeting Limitations: While Amazon OTT allows precise targeting, it may not be as granular as other digital advertising options. You can select demographics and interests, but you might struggle to narrow your audience to the degree you can with other Amazon Advertising tools.

  • Measuring Effectiveness: It can be challenging to track the direct impact of OTT ads on sales. Attribution models for OTT are still evolving, and you might find it difficult to determine the return on investment compared to more traditional online ads where click-through data is readily available.

Example: If your product sees an increase in sales, it can be hard to gauge how much of that is directly due to your OTT ad versus other marketing efforts or external factors.

  • Ad Skipping and Viewing Habits: Consumers have more control over their viewing experiences and can skip ads or use ad-free subscription models. This can limit the exposure of your OTT ads, and you need to account for these viewing habits in your advertising strategy.

  • Platform Dependencies: Your OTT advertising reach is also subject to the user base of your advertising platform. If the majority of your target audience does not use Amazon Prime Video or other OTT services where your ads run, the effectiveness of your campaign could be compromised.

Example: If your product appeals to an older demographic that predominantly watches traditional TV, an Amazon OTT ad campaign may have less impact than expected.

Building a Connection with OTT Audiences

1. Creating Messages for Emotional Engagement

Emotional Connection

To generate a lasting emotional connection, your OTT ads should evoke feelings that align with your brand values. Utilize emotionally-driven storytelling with relatable characters or scenarios that your target audience can see themselves in.

For instance, if you're selling eco-friendly products, a narrative centered around the love of nature and protecting the planet can strike a chord with viewers who share those values.

Brand Performance

Leveraging emotional engagement can significantly enhance brand performance. It's about creating a message so compelling that it not only sticks with the viewer but also encourages them to act.

Consider using powerful voice-overs and on-screen text that highlight your brand's unique selling propositions in a way that emotionally speaks to the viewers.

  • Voice-Over: A friendly and relatable voice can create an intimate experience, making your brand feel like a trusted friend giving advice. Be mindful of the tone and delivery to match the emotional punch you're aiming for.

  • On-Screen Text: Sometimes what you don't say is as impactful as what you do. Strategic use of on-screen text can emphasize key points or call-to-actions in a clear, concise manner. Ensure it's easily readable and complements the visual elements rather than overwhelming them.

Best Practices for OTT Campaigns

Here are some strategies to consider:

  • Define Your Objectives: Clearly outline what you hope to achieve with your OTT campaign. Whether increasing Brand Reach or driving sales, your goals will guide your ad spending and content strategy.

  • Know Your Audience: Use Amazon's rich consumer data for Audience Targeting. Identify the customers most likely to be interested in your products and tailor your adverts to their preferences and behaviors.

  • Craft Compelling Content: Develop engaging, high-quality video content that resonates with the viewer. Keep it concise and ensure it aligns with your brand voice.

  • Retargeting Tactics: Implement retargeting to reconnect with viewers who have interacted with your ad or visited your product pages. This can help move them down the sales funnel.

  • Test and Optimize: Start with a smaller budget to test different ad elements like messaging and visuals. Measure performance and iterate based on analytics to optimize for better outcomes.

  • Track Metrics: Pay close attention to KPIs such as view times, completion rates, and conversion metrics. This data is crucial for assessing Brand Reach and overall campaign performance.

Conclusion on Amazon OTT Advertising

Amazon OTT advertising is a powerful way to reach people watching videos on services like Freevee and Twitch. These ads can't be skipped, making sure your message gets seen by viewers, including those who don't watch regular TV.

Plus, you can specifically target your ads using Amazon's data on what customers like and do. Using OTT ads can increase your brand's visibility and sales. 

Want to get ahead with your ads? Our Amazon PPC plans can help.

Frequently Asked Questions on Amazon OTT

Can Amazon OTT Ads Be Targeted to Specific Geographical Locations?

Yes, Amazon OTT ads can be targeted to specific geographical locations, allowing advertisers to reach audiences within certain regions or cities, which can enhance the relevance of the advertising for localized products or events.

How Long Can Amazon OTT Ads Be?

The length of Amazon OTT ads can vary, but they are typically between 15 to 60 seconds to keep the viewer's attention and convey a concise message. It's important to follow Amazon's specific guidelines for ad durations.

Are There Any Content Restrictions for Amazon OTT Ads?

Yes, Amazon has content guidelines that restrict certain types of content in OTT ads, such as adult content, misleading information, and unsupported claims. Advertisers must adhere to these guidelines for their ads to be approved.

Can I Measure the Completion Rate of My Amazon OTT Ads?

Yes, advertisers can measure the completion rate of their Amazon OTT ads through Amazon's analytics tools. This KPI helps advertisers understand how engaged viewers are with the content.

Is It Possible to Adjust or Change OTT Campaigns on Amazon in Real-Time?

Campaign adjustments can be made, although not necessarily in real-time since changes may require review and approval. It's important to plan for a possible lag in implementation when making adjustments.

Can Amazon OTT Ads Integrate With Other Amazon Advertising Formats?

Amazon OTT ads can be used in conjunction with other Amazon advertising formats such as Sponsored Products and Sponsored Brands to create a comprehensive advertising strategy across the Amazon ecosystem.

How Does Amazon Ensure Ad Quality and Viewer Experience in OTT Advertising?

Amazon ensures ad quality by enforcing content guidelines and technical specifications for OTT ads. To maintain a positive viewer experience, ads are non-skippable, ensuring full-screen and high-quality exposure for the ad content.