Amazon Prime Video drives down ad prices for competitors in the latest price war

Published: Jun 13, 2024 Duration: 00:02:24 Category: News & Politics

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>>> THE BIGGEST ADVERTISING EVENT OF THE YEAR SET TO KICK OFF ON MONDAY WHERE MARKETING AND AD PROFESSIONALS MINGLE WITH MEDIA AND INFLUENCERS IN HOPES OF SECURING AD DEALS. OUR DEIRDRE BOSA LOOKING AT THE AD DOLLAR DYNAMICS HEADING INTO IT FOR TODAY'S "TECH CHECK." GOOD MORNING, DEIRDRE. >> GOOD MORNING, SARA. THE ELEPHANT IN THE ROOM, OR ON THE BEACH MORE ACCURATELY THIS YEAR, IS AMAZON SIX MONTHS AGO LAUNCHED ADS ON PRIME VIDEO AND THE ADVERTISING WORLD WILL DIGEST ITS IMPACT. A JOURNAL REPORT THIS MORNING POINTING TO HOW THE E-COMMERCE GIANT IS DRIVING DOWN AD PRICES FOR EVERYONE. IT CITES ADVERTISERS AND AD BUYERS THAT SAY NETFLIX COULD BE COLLATERAL COULD DECREASE PRICING FOR SOME BRANDS ON ITS PLATFORM BY AS MUCH AS 35% FOR 1,000 VIEWERS BRINGING IT CLOSER IN LINE TO THOSE PRIME VIDEO RATES THAT ARE MOVING LOWER. NOW AMAZON'S PRIME FLY WHEEL MAKES IT UNIQUELY POSITIONED TO IMPACT PRICING HERE EVEN THOUGH IT'S STILL A RELATIVELY NEW PLAYER IN THE AD SPACE. MORE THAN A NETFLIX AND OTHER STREAMERS, AMAZON IS VERY DIVERSIFIED. IT HAS E-COMMERCE, PRIME SUBSCRIPTIONS, THAT HIGH-MARGIN CLOUD COMPUTING BUSINESS. SO IT CAN MORE LIKELY AFFORD TO LOWER AD PRICES IN EXCHANGE FOR MORE MARKET SHARE WHERE IT HAS ALREADY EMERGED AS A GIANT CHALLENGING THE GOOGLE/META DUOPOLY. THIS COMES AT A TIME WHEN INVENTORY IS EXPLODING THANKS TO THE SHIFT TO AD-SUPPORTED MODELS, TIERS ON STREAMING PLATFORMS. IT WILL HURT A ROKU THAT ARE DIVERSE FID. ANOTHER DYNAMIC, THE GROWING ROLE OF INFLUENCERS, WHICH SARA MENTIONED. THIS IS THE CHART FROM EMARKETER SHOWING A RISE IN AD SPENDING ON INFLUENCE MARKETING. THEY ARE PROJECTED TO SPEND NEARLY $8 BILLION THIS YEAR, NEARLY $10 BILLION ON THIS CATEGORY AS TV RATES COME DOWN AND NOW POTENTIALLY CONNECTED TV RATES AS WELL GIVEN AAMAZON'S AGGRESSIVE PRICING. A DINNER HELD BY A PLATFORM THAT LETS CREATORS RECEIVE FUNDING DIRECTLY FROM FANS THROUGH A SUBSCRIPTION MODEL. FOCUS ON THIS CHANGING LANDSCAPE AND GROWING FRUSTRATION AT THE CHANGING ALGORITHMS LIKE YOUTUBE AND TIKTOK, SO THOSE BRANDED

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