Inside Amazon’s first upfront—5 takeaways brands need to know

Advertisers curious about what Amazon would reveal at its first upfront week presentation now have their answer: one ad platform meant to rule them all. The mega retailer's upfront was a star-filled show for media buyers, but the heart of the programming was the promise of an advertising machine that would offer brands a one-stop shop to reach shoppers through data, ad tech, and TV shows and movies. The event was also a quagmire for many attendees, starting a half-hour late as people lined up to get in. Some media buyers bemoaned the logistics of Amazon’s upfront at Pier 36 in Manhattan. Others marveled at the star power anchoring the Tuesday morning event, including Reese Witherspoon and Will Ferrell. One satisfied media buyer told Ad Age that other presenters have their work cut out for them if they want to match Amazon’s ad energy this week. The buyer spoke with Ad Age on condition of anonymity. Amazon talked about leveraging its massive shopper data so that “every single advertiser becomes endemic to Amazon,” as Sarah Iooss, Amazon’s head of U.S. agency and Twitch sales, said. Check out the latest Ad Age events and award programs In past years, Amazon held its upfront ad showcase during IAB’s NewFronts, when digital platforms talk with brands ahead of traditional TV broadcasters at upfronts week. But upfronts have become more digital with the introduction of Amazon and Netflix this year, and YouTube started appearing during upfronts in 2022. Amazon had some big moments with content, such as premiering its first trailer for the second season of “The Lord of the Rings: The Rings of Power.” More news: Takeaways from TelevisaUnivision’s upfront Here are the takeaways from Amazon’s first upfront. Get to the ads Amazon started the show talking about audience numbers and ads on Prime Video, which it launched this year, bringing commercials to all viewers unless they subscribed to a more expensive tier. Amazon has said the service reaches 115 million people in the U.S. If viewers sometimes balk at ad overload, advertisers are looking for more inventory. Advertisers have been counting on a flow of ad space on Prime for years, said Alan Moss, Amazon’s VP of global ad sales. “When I joined Amazon nearly four years ago,” Moss told the ad-buying audience, “the No. 1 question all of you asked me was, ‘when are you going to show ads on Prime Video?’ Well, at Amazon we like to deliver for all of our customers.” Amazon claims it is now the largest ad-supported streaming service in the world. Amazon execs referred to major moves the streamer has made to open up inventory beyond its original shows and movies. For instance, it has developed free ad-supported TV channels, or FAST; it licenses new shows and movies; and has deals to run ads on channels in Prime, including Max, Paramount+ and Crunchyroll. Open to all brands While Amazon focused the show on celebrity power, the real draw for brands could be its data. “Our audience is not just a number on a page, we know them,” said Mike Hopkins, senior VP of Amazon Prime Video and MGM Studios. Amazon has a unique blend of ad tech, marketing data, measurement and media, and with the upfront the fusion seems to be coming together. Amazon’s ad leaders discussed how the ad platform will work for even brands that don’t sell on its website. “It no longer matters whether you sell on Amazon or not,” Moss said. “With our clean room and other leading ad tech, we can help all advertisers connect awareness and brand objectives directly to sales outcomes and category growth.” Amazon’s entertainment turn Amazon went all-in showing off its content, bringing Jake Gyllenhaal to discuss “Road House.” Octavia Spencer and Hannah Waddingham teased an upcoming series that’s currently untitled. Ferrell and Witherspoon had a humorous team up on stage promoting the upcoming romcom “You’re Cordially Invited.” As Amazon and other tech companies have invaded traditional TV spaces, such as upfronts, media buyers have told Ad Age they want the digital platforms to act more like the traditional media companies when it comes to crafting ad deals—the buyers want more relationship-building from the newcomers. Although Prime Video offers advertisers rich data and capabilities, some have questioned the platform’s ability to roll out originals at the consistent clip of its TV competitors. Amazon seemed to take the note by hyping new content, such as renewals for its existing hits including “The Boys” and “Mr. & Mrs. Smith,” along with a teaser for season two of “The Lord of the Rings: The Rings of Power.” Prime Video also announced new programming, such as “Noir,” which will star Nicolas Cage and follow the story of the “Spider-Man Noir” comics. New unscripted programming will include “Are You Smarter Than a Celebrity?,” hosted by NFL star and Taylor Swift beau Travis Kelce, and “Pop Culture Jeopardy!” The platform is also integrating its retail powers into its programming. “Buy It Now,” hosted by JB Smoove, will task entrepreneurs with pitching their products to everyday customers for a chance to have the products sold in a special storefront on Amazon, and holiday special “Wish List Games” will have audience members compete for a chance to win their entire Amazon wish lists. Get upfront updates sent directly to your inbox here Where’s Freevee? Advertisers could be forgiven if they didn’t notice any mention of Freevee at the upfront. Freevee is Amazon’s free, ad-supported app that offers a mixture of originals and other programming. Last year, Freevee was a main attraction at Amazon’s NewFronts after it had a surprise hit with “Jury Duty.” This year, Freevee took a way-back seat to Prime Video and its originals. A logo for Freevee projected on the screen for moments as Amazon talked about all its properties, but the Freevee brand did not seem to be a priority for more content. Amazon’s deprioritizing of Freevee was good, one ad buyer told Ad Age, speaking on condition of anonymity at the upfront. Amazon has been a confusing place to do business because of all the brands and properties, which meant crafting deals with multiple teams in Amazon Ads. Prime Video is pulling them all together under one umbrella, and Freevee has been phased out in the ad negotiations, the media buyer said. Amazon ad execs emphasized the unity of the platform when discussing all the new ad tech, Prime Video, and the rest of the ecosystem. “We’re building a one-stop advertising destination,” Hopkins said. At its upfront, Amazon characterized Freevee as part of its overall “streaming TV offering,” which it said reaches 175 million-plus viewers in the U.S. monthly. Advertisers “can appear on Prime Video, Amazon Freevee, Twitch, live sports, Fire TV Channels and top third-party TV publishers and broadcasters,” an Amazon spokesperson said in a statement to Ad Age. Shoppable ads Prior to upfront week, Amazon announced the addition of commerce-enabled ad formats for Prime Video. While pause ads, shoppable carousels and trivia ads may not be groundbreaking developments, Amazon highlighted its ability to link these ads to its retail catalog and check-out. Media buyers have highlighted Amazon's commerce and data capabilities as a source of excitement for clients as they seek to better connected TV marketing with business outcomes, as well as the ability to measure the impact of TV ads on consumer purchasing.

Inside Amazon’s first upfront—5 takeaways brands need to know

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