A few months back Amazon Prime introduced ads on its platform to create an alternative way of revenue. Experts have been divided over the efficacy of this model and questioned how beneficial it will be for both Amazon and the advertisers. Three months after the rollout of the new ad feature, we have conclusive evidence to say that the move is successful and bringing in money for the platform.
The advertisers who are using the platform have reported positive results as well. The sellers who advertised on Prime saw an increase in the sales on Amazon in this time period. The top 5 ad buyers have found that they are getting good responses to the ads on Amazon Prime.
It is predicted that Amazon can get hold of 15 percent of the video budget of the advertisers and give steep competition to Hulu and YouTube. The ad revenue model was feared to decrease the number of paid subscribers on the platform but it has not affected the user base.
There’s another plan available for those subscribers who don’t want to watch ads by paying a little extra. This model is expected to bring up to $5 billion from ads alone. This is surely a boost to the industry which has seen tough competition in the recent years.
