Amazon rolls out private auctions for Prime Video ads on CTV

New Delhi: Making a significant shift in the CTV ad landscape, Amazon has introduced private auctions to its Prime Video inventory to incorporate a wider set of buyers.

Until now, select advertisers, who committed upfront budget during Amazon Ads NewFronts or those buying through managed service channels, could access Prime Video ad slots. With this change, media buyers using DSPs (Demand-side platforms) such as Yahoo DSP, Google’s DV360, and The Trade Desk will now be able to grab Prime Video’s CTV inventory, according to news reports. 

Challenging the traditional model of fixed cost-per-thousand (CPM) rates, this newly introduced structure lets advertisers buy Prime Video ad inventory using dynamic pricing. This enables real-time bid optimisation and could reduce campaign expenses by as much as 20%.

Amazon began with ads on Prime Video in early 2024. The move was initially positioned as a value-add for advertisers with large budgets and the willingness to commit to high minimum spends. 

But as competition heats up in the streaming ad space, with players like Netflix and Peacock also ramping up their programmatic capabilities, Amazon is now making strategic changes to boost advertiser participation and fill its inventory more efficiently.

Through private auctions, media buyers will be able to compete for impressions programmatically, albeit in a controlled environment. These private auctions will not offer full real-time open auction access, which still remains off the table, but will allow advertisers to tap into Prime Video audiences in a more cost-efficient and performance-driven manner than the previous upfront-centric model. 

This means advertisers with relatively smaller budgets can now test, optimise and scale campaigns on one of the most-watched streaming platforms without lengthy sales negotiations or fixed upfront commitments.

Another notable aspect is Amazon’s decision to not limit media buyers to Amazon’s DSP. By welcoming platforms like The Trade Desk and Google DV360, which hold considerable market share, Amazon is also implicitly encouraging marketers to bring their own data and measurement capabilities to the table. This can create more robust audience-targeting opportunities and performance feedback loops.

For now, Amazon has introduced this expanded access in the US markets. International markets including India, where Prime Video enjoys a massive subscriber base, are not part of this offering yet.