Amazon Prime Video expands its focus on live sports to boost ad revenue
The company aims to attract advertisers with year-round sponsorship opportunities
Highlights:
- Prime Video has acquired NBA and NASCAR rights to expand its sports content.
- Amazon is leveraging first-party ad measurement to track viewer engagement and ads.
- The video streaming platform is also bringing brand ads to its new NBA studio show.
Amazon Prime Video is making a major push into sports content as part of its strategy to grow its advertising business. The streaming service is seeking more content formats away from shows and movies. It has secured a $76 billion deal with the NBA and will also add NASCAR Cup racing.
These deals give Amazon a year-round presence in live sports, allowing advertisers to invest consistently throughout the year. VP of Prime Video International, Kelly Day, has previously said that Amazon will bring more ads to Prime Video.
Now, the platform is aiming to attract more advertisers through sports content. It has spent roughly $3 billion a year on broadcasting rights for top leagues like the NBA and NFL. Danielle Carney, head of live sports and video sales for Amazon Ads, emphasized the opportunity for brands, stating, “We’re really excited about elevating and being a new voice inside the NBA, and driving new audiences that are really valuable to our customers.”
Amazon’s growing focus on sports content
Live sports have become a key part of Amazon’s strategy to attract advertisers. The company already streams Thursday Night Football, WNBA, and NWSL games. In 2024, viewership of Thursday Night Football on Prime Video and Twitch grew by 11%, reaching an average of 13.2 million viewers per game.
The company also streams WNBA and NWSL games, further expanding its reach in live sports. Its competitors such as Netflix are going all in on live sports, securing deals for Christmas Day NFL games, a blockbuster Jake Paul vs. Mike Tyson fight, and live WWE RAW events.
Amazon’s investment in sports content aligns with its broader goal of increasing advertising revenue. The company recently reported $17.3 billion in ad revenue for Q4 2024.
Carney emphasized the importance of sponsorships in Amazon’s ad strategy. “That was a big launch for us last year with Prime Video Ads. Sponsorship has become bigger and bigger in importance,” she said. “So we have advertisers leaning in. I think they’re listening, and we’re listening back, it’s really important to understand their brands and then share the insights we have.” she added.
NBA deal offers new brand integration opportunities
As part of the NBA partnership, Amazon plans to integrate brand ads into its new NBA studio show, which will serve as a central hub for basketball coverage. Sponsors will have opportunities for in-studio branding, virtual placements, and highlight sponsorships.
These advertising opportunities are designed to help brands connect with engaged sports audiences. Amazon has previously said that it will introduce new advertising formats in Prime Video, including interactive video ads that enable direct purchases, interactive pause ads, and shoppable carousel ads.
Amazon uses first-party data to measure ad impact
Amazon is also leveraging its first-party measurement tools to track ad effectiveness. The company claims it can track whether viewers saw an ad, engaged with sponsorship elements, or made a purchase after seeing a campaign.
“We’ve been able to capture all of the first-party insights that you would capture on audiences with a 30-second creative,” Carney explained. “Did someone see your sponsorship element, your feature, and did they see your ad? Did they only see one? What did they do after?”
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