Amazon Video Streaming surpasses $1.8 billion in ad spending

Amazon has reportedly exceeded its goal of receiving $1.8 billion in ad spending on its video streaming services after the company introduced advertising on its Prime Video earlier this year.

That total includes commercials on the company’s live sports broadcasts, including the NFL’s “Thursday Night Football,” Seeking Alpha reported Friday (Sept. 27), citing a paywalled article from The Information.

When contacted by PYMNTS, Amazon declined to comment on the report.

The company announced in September 2023 that it would include “limited advertising” in Prime Video shows and movies starting in 2024, and would also offer an ad-free option for an additional charge.

“We want to run significantly less advertising than linear television and other streaming TV providers,” Amazon said in a blog post when announcing the move.

The company’s announcement came at a time when advertising was playing a larger role in streaming, PYMNTS reported in December. For example, Netflix introduced its ad-supported tier last year, and Warner Bros. Discovery’s Max streaming subscription saw a shift to ad-supported models, which helped drive revenue.

Netflix said in July that advertising had played a critical role in driving streaming profitability and strengthening the company’s stock since launching its ad-supported tier in late 2022.

“We’re very pleased with how we’re scaling our advertising business,” Netflix Chief Financial Officer Spencer Neumann said July 18 during the company’s quarterly earnings call. “The share of sales from ads is growing significantly.”

Streaming platforms are changing the advertising landscape, giving brands unprecedented opportunities for targeted marketing, PYMNTS reported in April.

Since Netflix moved into ad-supported plans, advertisers looking to tap into the streaming giant’s large user base have invested in campaigns designed to resonate with viewers.

Viewers also continue to engage with these services. According to PYMNTS Intelligence and LendingClub collaboration “New Reality Check: The Paycheck-to-Paycheck Report: The Nonessential Spending Deep Dive Edition,” a quarter of consumers say their spending on streaming services has been “indulgent.”

That’s true for 29% of consumers who live paycheck to paycheck with trouble paying bills, 21% of those who live paycheck to paycheck with no trouble paying bills, and 28% of those who, according to the report not living paycheck to paycheck, the report said.