What are Amazon Sponsored TV ADs?

Amazon Sponsored TV ads is the new feature launched by Amazon to help businesses reach a large audience on the biggest screen in the home with minimum spend by providing self-service ad-stream solution. By making your ads visible on Amazon’s Exclusive Streaming Services like Twitch, Prime Video, Freevee and Amazon Publisher Direct businesses can target potential clients that are more likely to be interested in the products using Amazon’s first-party shopping and streaming signals. Sponsored TV ads are currently available in the US, Brazil, Mexico, Canada and the UK with plans to expand in more countries. You also get premium video content placements, flexible budgeting and performance analytics that helps businesses to connect through the audience more effectively.

Benefits Of Amazon Sponsored TV ADs?

  1. Unmatched Audience Targeting- Amazon Sponsored TV ADs help you to expose your business to millions of people easily. It also helps to allow advertisers to target particular clients based on a wide range of factors such as their past shopping behaviour, geographic location and even intent of customer. This helps to get better conversion rates.
  1. Adapting to changing consumer behavior- With the rapid change in consumer behaviour, more and more people are switching to Amazon Firestick and getting rid of the obsolete cable services. Amazon sponsored TV ads cater to a growing audience that have Prime Video and Twitch. Thus, this will help you to reach your ideal audience that are already using Amazon services.
  1. Data-Driven Insights- The performance data analytics offered by Amazon Sponsored Ads is an awesome feature to help you to track performance across various metrics such as return on ad spend(ROAS), viewer engagement and sales lift. With these insights businesses can work on their flaws and make data-driven strategies to increase their ad-performance. 
  1. Seamless Shopping Experience- The most exciting thing about Amazon Sponsored ADs is that you can now easily shop on Amazon directly through your TV screen by linking it to your Amazon account. This presents a unique opportunity for advertisers to capitalize on impulse purchases and drive immediate sales. It will help to bridge the gap between viewing and purchasing a product immediately.

How to Launch Your Sponsored TV Ad campaign?

If you’re new to Amazon Ads, the first step is to create an account. Register on the platform and choose the appropriate sign-in option to access your account. If you already have an advertising account, simply log in, select the “Sponsored TV” campaign type, and follow the steps outlined below to set up your campaign quickly and efficiently.

Step 1: Define Your Campaign Goals

Before launching your Sponsored TV campaign, it’s essential to define your goals. Streaming TV ads offer the unique advantage of delivering measurable results, so it’s important to have a clear objective in mind. Are you aiming to boost foot traffic to your physical store? Or perhaps you’re promoting a new product? Understanding your specific goals will help you craft the right creative elements and evaluate the success of your campaign. If you’ve had success with promoting products or offers on social media, consider how you can adapt those strategies for a larger screen. The key is to use streaming TV as a powerful tool that complements and amplifies your broader marketing efforts.

Step 2: Create Your Campaign

Once your goals are clear, log in to your Amazon Ads account and click on the “Create campaign” button. Choose the “Sponsored TV” option to begin setting up your campaign. This will guide you through the necessary steps to get your ad live on streaming platforms.

Step 3: Configure Your Campaign

In this section, you’ll establish key parameters for your campaign:

  • Campaign Name: Select a clear, concise name for easy identification and performance tracking. For instance, using an abbreviation like “STV” for Sponsored TV allows for efficient sorting and comparison of metrics (like ROAS) across different campaigns.
  • Budget Allocation: Sponsored TV campaigns use a CPM (cost per thousand impressions) billing model, and there’s no minimum spending requirement. You’ll set a daily budget that you can modify as needed. Once the daily budget is exhausted, your ads will pause until the next day at midnight. For initial testing, small to medium-sized businesses might consider a starting daily budget of approximately $150, which can then be adjusted based on performance data.
  • Destination Pages: Sponsored TV ads offer interactive elements that can direct viewers to either product pages or your Brand Store. If your ad features a single product, linking to its detail page is the recommended approach. For broader campaigns, such as lifestyle videos showcasing multiple products, directing viewers to your Brand Store is more appropriate. Note that enabling a QR code in your ad will automatically link to your Brand Store. Interactive TV ads focused on product details even allow viewers to add items to their cart directly using their remote.

Step 4: Select Your Audience

Audience targeting is crucial to the success of your campaign. If you’re new to streaming TV advertising or have been experimenting with it, it’s a good idea to target a diverse range of audiences. Some groups may generate more impressions but offer less engagement, while others may be smaller but drive stronger performance. We recommend starting with 3 to 5 different audience segments to test which ones perform best for your campaign.

As a general rule:

  • Broader audience targeting leads to lower bids (around $10–15).
  • More specific and targeted audiences will likely require higher bids (around $20–25). Use these as baseline figures for setting your audience bids.

Step 5: Use Engaging Creative

The creative content of your Sponsored TV ad is a crucial element in driving engagement and conversion. Ensure your ad clearly showcases your brand and product benefits. It’s important that your brand name, logo, and product differentiators are prominently featured. Including an end card with a call to action—such as a “buy now” prompt or an “Available on Amazon” badge—can help improve brand recall and prompt viewers to take action. The more polished and professional your creative is, the more likely you are to engage viewers and convert them into customers.

Conclusion

Amazon Sponsored TV Ads are transforming television advertising by merging data-driven intelligence with the broad reach of TV. Through sophisticated targeting, cross-platform connectivity, and a streamlined purchasing process, Amazon provides brands with a distinct advantage in engaging consumers effectively. With the increasing popularity of streaming and on-demand content, the importance of Amazon Sponsored TV Ads will only increase, solidifying their position as a crucial resource for forward-thinking marketers.