OTT

Amazon surpasses Netflix in ad spend

Amazon Prime Video has become the biggest OTT spender in the first half of 2019, outstripping Netflix, according to a new study by MediaRadar.

In a recent OTT analysis, Amazon has increased its ad spend by more than 300% year-over-year (YoY), while Netflix and Hulu had cut back on advertising during the same financial period.

Furthermore, its increase in native advertising went up five-fold YoY; the spending was attributed to promoting its original productions — Good Omens, The Boys, and Hanna.

Coming in the second place, Netflix has strategically expanded its promotion of original content via partnerships and licensing. For instance, mobile and consoles games based on the licensed content Stranger Thing, will be shelved soon.

Moreover, Netflix is initiating brand partnerships with major food and sports chains such as Coke and Nike. The move could be a more lucrative method of promoting Netflix while cutting back on paid ads.

In the same period, Hulu goes old school by dropping traditional TV spend by 61% while boosting print advertising by 57%.

With the emergence of Disney+, the fight for OTT space will intensify and lead to volatile spends but Amazon’s investment in advertisement reveals a strong ecosystem for its original content.

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