Amazon significantly affects streaming ad costs by pricing its CPMs at around $40, similar to Netflix and lower than Disney+. The competitive market is forcing other platforms to adjust their pricing to remain attractive. Industry experts note that unless additional value is added to content or advertising, this buyer-friendly market may persist. Amazon's massive scale and e-commerce strengths are clearly disrupting traditional streaming video costs, encouraging advertisers to reconsider their strategies and spending.
Right now, ad buyers are paying around $40 to reach a thousand viewers on Prime Video, about the same as on Netflix.
It's a buyers market, and we expect it to remain this way until ad load decreases or publishers find more ways to add value.
It's clear Amazon is leveraging its humungous scale and ginormous e-commerce infrastructure to disrupt the streaming video landscape.
Bit by bit, Amazon dragged streaming ad prices down.
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