Table of Contents
- Introduction
- The Genesis of Amazon Prime Video Ads
- Hasbro’s Pioneering Effort
- Why Amazon Prime Video Ads Work
- Lessons for Other Brands
- Conclusion
- FAQ
Introduction
Imagine you're a brand trying to break into new markets, but traditional media is costly and your options seem limited. Enter Amazon Prime Video ads, the game-changer that’s transforming how companies like Hasbro reach untapped customer bases. With Amazon's extensive first-party data and robust video capabilities, brands are now able to optimize their advertising strategies for extraordinary impact. But how does it all work?
In this post, we’ll dive into Hasbro’s inspiring case study that shows how leveraging Amazon Prime Video ads has helped them attract new buyers and boost brand favorability. We’ll dissect their journey, explore the mechanics of Amazon’s advertising ecosystem, and provide insights on how other brands can replicate this success.
The Genesis of Amazon Prime Video Ads
To understand the transformation brought by Amazon Prime Video ads, we need to explore Amazon's advertising paradigm shift. Initially known for its sponsored product ads, Amazon dominated the lower funnel advertising space. However, the introduction of commercials on Prime Video marked Amazon’s foray into upper-funnel advertising. By integrating first-party shopper data with TV-like ad experiences, Amazon provides a more holistic advertising platform, bridging the gap between brand-building efforts and direct consumer sales.
Hasbro’s Pioneering Effort
Hasbro, a leading toy and entertainment company, was quick to seize this opportunity. The company tested the waters with two beloved brands: Peppa Pig and Play-Doh. Their early adoption offers a blueprint for other brands looking to capitalize on this innovative advertising medium.
Peppa Pig: A British Success Story
In the UK, Hasbro embarked on a six-week campaign for Peppa Pig from February to March. The campaign aimed to gauge the effectiveness of Amazon’s first-party data in optimizing ad delivery. Three different creative messages were trialed to see which resonated best with young parents. The results were nothing short of remarkable:
- Reach and Engagement: The campaign reached 7 million unique viewers, demonstrating Amazon’s impressive reach.
- New Customer Acquisition: Incredibly, 68% of the Peppa Pig purchases during this period came from new customers.
- Brand Metrics: Enhanced ad recall, brand awareness, purchase intent, and brand favorability were confirmed through third-party verification by Lucid.
This success set the stage for not just brand loyalty but also substantial revenue growth, making it evident that Prime Video ads had a significant ROI.
Expansion to the U.S.: The Play-Doh Campaign
Buoyed by the success in the UK, Hasbro brought their strategy stateside with Play-Doh. This time, they reached 7.2 million unique shoppers through Prime Video, and 79% of these were new customers.
One of the standout insights was that consumers exposed to a combination of video, display, and sponsored ads were 6.4% more likely to make a purchase compared to those who only saw sponsored ads. This multi-format approach illustrated the power of Amazon’s comprehensive advertising suite.
Why Amazon Prime Video Ads Work
Precision Targeting with First-Party Data
What sets Amazon apart from other streaming platforms is its unparalleled access to first-party data. This treasure trove allows for granular targeting, ensuring that ads are not only reaching a large audience but the right one. In Hasbro’s case, young parents were the primary audience for Peppa Pig ads, significantly boosting conversion rates.
Reduced Ad Clutter
Amazon promises a lighter ad load compared to other streaming platforms, creating an "uncluttered space" for advertisers. Jennifer Burch, Senior Director of Global Media at Hasbro, emphasized this point, suggesting that a less cluttered environment enhances ad recall and makes lower-funnel efforts more efficient.
Full-Funnel Integration
The combination of branding and direct sales is what makes Amazon’s advertising ecosystem potent. Traditional TV ads are great for brand awareness, but they seldom translate directly to sales. With Amazon’s model, ads on Prime Video can be linked closely to online purchasing behavior, making it easier to track ROI and effectiveness.
Enhanced Customer Experience
Despite concerns about introducing ads to Prime Video, Amazon has maintained a focus on customer experience by keeping ad volume low. This delicately balanced approach ensures that while advertisers gain exposure, viewers do not feel bombarded with ads, preserving the quality of their viewing experience.
Lessons for Other Brands
Brands looking to replicate Hasbro’s success should focus on the following key strategies:
Leverage First-Party Data
Utilizing Amazon’s first-party data allows for precise targeting, driving both engagement and conversion. Brands should define their target audience meticulously and align their creative messaging accordingly.
Multi-Format Campaigns
A combination of video, display, and sponsored ads proves exceedingly effective. This multi-channel approach ensures broader reach and higher conversion rates, as evidenced by the 6.4% higher purchase rate in Hasbro’s campaign.
Measure and Optimize
Continuous measurement and optimization are crucial. Tools like Lucid for third-party verification can provide valuable insights into ad effectiveness, enabling brands to fine-tune their strategies in real time.
Maintain a Balanced Ad Frequency
An optimal frequency of ad placements can enhance consumer experience and brand recall. While high frequency may lead to viewer fatigue, too low a frequency might not generate the desired impact. Finding that sweet spot is key.
Innovate Creatively
Testing different creative messages can illuminate what resonates best with the audience. Hasbro’s approach of experimenting with three different messages for Peppa Pig is a good practice for brands to follow.
Conclusion
Hasbro’s successful use of Amazon Prime Video ads exemplifies how integrating data-driven insights with robust video capabilities can transform marketing outcomes. The amalgamation of first-party data, strategic ad placements, and creative innovation has proven to be a potent formula for engaging new customers and boosting brand favorability.
As more brands adopt similar strategies, Amazon Prime Video ads could very well become a cornerstone in the advertising landscape. This case study not only provides a roadmap for other brands but also highlights the broader implications of this advertising model in shaping future marketing paradigms.
FAQ
Q: What makes Amazon Prime Video ads unique compared to other platforms?
A: Amazon Prime Video ads leverage Amazon’s extensive first-party data, enabling precise targeting and enhanced customer reach. This integrated approach combines brand awareness with direct sales capabilities, offering a unique full-funnel advertising experience.
Q: How did Hasbro benefit from Amazon Prime Video ads?
A: Hasbro successfully used Amazon Prime Video ads to reach 7 million new customers in the UK and 7.2 million in the U.S. With substantial new customer acquisitions and improved brand metrics such as ad recall and purchase intent, the campaign proved highly effective.
Q: What strategies can other brands use to replicate Hasbro’s success?
A: Key strategies include leveraging first-party data for precise targeting, utilizing multi-format campaigns, continuous measurement and optimization, maintaining a balanced ad frequency, and innovating creatively to engage the target audience effectively.
Q: Are there any drawbacks to using Amazon Prime Video ads?
A: While effective, Prime Video ads come with a learning curve and require diligent monitoring and optimization. Also, the introduction of ads might alienate a segment of Prime Video’s ad-free experience audience, though Amazon’s lighter ad load aims to mitigate this concern.
