Published on Ad Age

Three-year agreement grants media agency network first-look on upcoming ad formats and show sponsorships

Amazon has signed a three-year deal with IPG Mediabrands for its upcoming Prime Video ad tier, the companies announced today.

The deal grants the media network—home to agencies including Magna, UM, Mediahub and Initiative—first-look rights on upcoming ad formats and show sponsorships. It also gives the agencies’ clients access to the e-commerce giant’s first-party shopping and entertainment data to incorporate into advertising on the platform.

It’s the first deal struck between Amazon Ads and a media agency organization for Prime Video ads.

Amazon announced in September that it would automatically opt all Prime Video users in for advertising when watching shows such as “The Boys” and “The Marvelous Mrs. Maisel” starting in early 2024. Those wishing to continue viewing Prime Video ad-free will have to pay an additional $2.99 per month. The ad tier will initially launch in the U.S., U.K., Germany, and Canada, with France, Italy, Spain, Mexico, and Australia to follow later next year. IPG Mediabrands’ deal will encompass all markets.

“Amazon’s latest offering brings a first-to-market opportunity for our clients to reach consumers at the category level in a comprehensive, scalable way—from culture and content to commerce and shoppable experiences,” said Eileen Kiernan, Global CEO of IPG Mediabrands, in a statement.

“The ability to access the entire Amazon streaming TV product suite is an added benefit for both endemic and non-endemic brands within our broad client portfolio,” added Dani Benowitz, Global President of MAGNA, noting that the agency is a longtime partner of Amazon Ads.

‘Unmatched reach and frequency’

Amazon’s capabilities in data and commerce have been an exciting addition to the streaming video ecosystem for advertisers. Prime Video’s recent Black Friday NFL game was a showcase for its ability to pair entertainment with direct sales as brands filled the match with interactive spots for viewers to access exclusive holiday deals. While “Black Friday Football” didn’t achieve the ratings some media buyers predicted, the business outcomes from Amazon’s first Black Friday game were enough to keep marketers hyped for future partnerships with the streaming platform.

“When we begin introducing limited ads into Prime Video shows and movies, Prime Video will be one of the largest premium ad-supported services in most countries where we operate,” said Alan Moss, VP of global sales for Amazon Ads. “This means we can simultaneously offer brands unmatched reach and frequency to help them achieve their business goals.”

Advertisers have been enthusiastically awaiting the arrival of Prime Video’s ad tier, particularly because of the instant, large audience it will offer, while other streaming platforms have struggled to grow the number of ad-supported users. Despite pitching advertisers with CPMs, or the cost to reach 1,000 viewers, as low as $30, Ad Age previously reported the streamer has asked for nine-digit commitments from agencies.

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