Commentary

Amazon's Media Agency Review: What Does It Mean For Future Upfront Deals?

Will Amazon's massive media agency review have any effect on next year's upfront deal-making -- the one that will secure inventory for the 2025-26 TV season?

One report suggests it will. 

But also consider, one media buyer says, that it's a long way off. And we have barely concluded the upfront advertising deal-making for the 2024-25 TV season that will begin in around three weeks.

Digital-first streaming TV platforms are mixing and matching sales efforts around selling TV-video inventory -- not just during the upfront but all year-round. 

Also consider that the flood of inventory for the still new-ish advertising-supported Prime Video option has its own factors to consider --  something that resulted in depressed CPMs (cost-per-thousand viewer pricing) in the current marketplace for all top premium streaming platforms. 

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Amazon, of course, has other ad platforms to consider in going forward after the new media agency is selected -- its big retail media network is perhaps in higher regard currently.  While TV upfront is important, much bigger volume inventory issues would be focused on those non-legacy looking TV/video platforms.

Amazon reportedly pulls in $46.9 billion a year in overall global advertising -- accounting for 10% of total digital spend worldwide.

However, the company’s streaming/OTT/CTV ad revenues are just small piece of this. Collectively, ad revenues from Prime Video, Freevee, Twitch and the Fire TV platform are estimated to total $4.72 billion this year

While Amazon Prime Video is growing rapidly, much brand focus remains with Prime Video’s high-profile “Thursday Night Football,” which brings in around $450,000 to $500,000 per 30-second commercial -- comparable to TV network NFL rates.

Traditional upfront TV brands are obviously looking for broad reach from a number of premium streamers. Right now, Nielsen estimates Prime Video has a 3.4% share of the overall TV-video marketplace in terms of total TV day viewing for persons 2-plus.

Has Amazon Prime Video monetized all that piece grabbing 3.4% of all available TV/streaming upfront (and scatter) market advertising revenue? We have no idea.  Analysts say overall advertising perspective for now -- for all its TV content is -- is still relatively new.  

For next year’s upfront market, brands might be keeping an eye on things, taking a wait-and-see approach when it comes to where its media review lands. 

At the same time, one media analyst told TV Watch that media agencies are generally consistent in revealing to all TV networks/streaming group expected inventory volume needs long before the marketplace moves.

All to say, don’t expect any major radical media buyers strategic changes.

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