Amazon Prime Video is now outspending Netflix as the top streaming or over-the-top video advertiser, according to a new study by MediaRadar.
And not just by a little.
How the big 3 streaming media platforms' ad spend changed year over year
Amazon boosted digital ad spend by more than 300% year-over-year. Interestingly, in the same period, both Netflix and Hulu cut back advertising.
“Our recent OTT analysis showed that Amazon Prime Video has shifted to become the biggest OTT spender in the first half of 2019,” says Todd Krizelman, CEO of MediaRadar. “It also highlighted that Amazon Prime Video’s jump to number one can in part be attributed to the heavy promotion of its new original content, including increased investment in native advertising. In fact, its native advertising spend rose 5X, year-over-year, when comparing 2018 and 2019.”
What is Amazon focusing on?
Three original shows primarily: Good Omens, The Boys, and Hanna.
Interestingly, while Netflix continues to promote its original content, it's expanding via partnerships and licensing. For example, there are new Stranger Things mobile and console games arriving soon, both based on licensed content from Netflix. In addition, Netflix has initiated brand partnerships with Coke, Nike, Burger King, Baskin Robbins — and hit game Fortnite.
That's a potentially a cheaper — and even lucrative, in terms of game licensing — method of still continuing to promote the Netflix brand, while saving paid advertising dollars.
Netflix led OTT ad spending in the first half of 2018, followed by Amazon and then Hulu. This year, Amazon and Netflix have switched places, with Hulu still in the third position.
Oddly, Hulu dropped traditional TV spending 61% while simultaneously increasing print advertising 57%.
Overall, Amazon launched 13 new ad campaigns for its original content in early 2019, with the biggest spend allocated to Hanna.
"While spend amongst these top OTT providers can be volatile based around content releases, it is telling to see Amazon continue to invest in the platform and its original content, further enticing viewers to stay in, or even enter, the Amazon ecosystem,” said Krizelman.
