Amazon has successfully exceeded its target of $1.8 billion in ad-spending commitments for its video-streaming services for the upcoming year, according to a report by The Information citing a source familiar with the company’s advertising strategies.
This milestone was reached during the recent conclusion of the upfront ad market for 2024, where advertisers negotiate significant commitments for TV and streaming ads over the next twelve months. The commitments encompass advertisements on Prime Video as well as Amazon’s live sports broadcasts, including the NFL’s Thursday Night Football games.
The e-commerce giant is optimistic about sustaining its ad revenue growth by investing heavily in streaming television and capturing a substantial portion of advertising budgets, particularly as spending increasingly shifts toward streaming platforms.
While Amazon refrained from commenting on the report when approached by Reuters, it is noteworthy that the company began incorporating ads into its Prime Video service for the first time earlier this year.
In July, Amazon, alongside Walt Disney’s ESPN and Comcast-owned NBCUniversal, secured an 11-year deal valued at $77 billion to broadcast National Basketball Association (NBA) games. This addition enhances Prime Video’s growing portfolio of live sports content, which also includes NFL and NASCAR events scheduled for 2025.
Despite this recent success in ad commitments, Amazon fell short of advertising sales estimates in the second quarter. The company reported sales of $12.8 billion, which was below the anticipated $13 billion, as it intensifies competition with rivals such as Meta Platforms and Alphabet’s Google.
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