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Amazon鈥檚 ad business expands: Ad sales were up 18% YoY to $17.28 billion, fueled by retail media and Prime Video ads.

Prime Video may take a stab at streaming news: A successful election night broadcast has the streamer exploring options.

Amazon Prime is deeply entrenched in the US, with 75% of households as members. Despite this saturation, Amazon sees growth opportunities in international markets and among underpenetrated US demographics: rural, younger, and lower-income consumers. These groups show untapped potential, said Jamil Ghani, Amazon Prime鈥檚 worldwide VP. Prime fuels Amazon鈥檚 ecosystem鈥攎embers spend more by using benefits like streaming, pharmacy, Grubhub+, and free shipping. In contrast, nonmembers often spend less over time. By expanding perks and appealing to new segments, Amazon uses Prime to drive loyalty, customer lifetime value, and resilience against macroeconomic shifts.

The milestone: Amazon recently deployed its 1 millionth robot in its fulfillment centers鈥攁 figure approaching the number of human workers at those facilities. Our take: Automation is a central element within Amazon鈥檚 relentless push to narrow the gap between click and doorstep. Fast delivery isn鈥檛 just about convenience; it transforms how consumers shop. The faster Amazon gets everyday essentials like toothpaste into customers鈥� hands鈥攅specially with free delivery for Prime members鈥攖he harder it becomes for other retailers to compete. That gives Amazon a durable edge as it looks to expand its share of US ecommerce sales.

Amazon鈥檚 ad launch will define streaming for years to come: In less than a year, Prime Video became a top dog in streaming advertising.

Among subscription video streaming services, Amazon Prime Video has the highest share of ad-supported viewers, while Netflix has the lowest.

The ecommerce giant鈥檚 launch of ads on Prime Video instantly gave it the largest audience for an ad-supported subscription video service in the US.

Two-thirds of US TV viewers (66%) would rather watch ads and save $4 to $5 a month than spend the money to ditch ads, according to June 2024 data from Hub Research. That鈥檚 up five percentage points from June 2023. Netflix, Amazon Prime Video, Hulu, and Max all have ad-supported tiers now, and consumers benefit by saving a few dollars along the way. Advertisers can capitalize on these cost-saving behaviors by reaching consumers with messaging that emphasizes discounts and deals.

Amazon integrates Freevee content with Prime Video: Viewers gain access to ad-supported shows while Amazon streamlines its media ecosystem for advertisers.

Prime Video thinks AI can fix UX problems: Complaints about show catalog failures may have spawned its latest AI-powered feature.

2024 has been a disruptive year for generative AI (genAI), which transformed from a buzzword into a practical part of marketing workflows, and commerce media as more platforms launch. Meanwhile, advertisers are still figuring out the lifespan of third-party cookies. And connected TV (CTV) advertising got a big boost from Prime Video.

础辫辫濒别鈥檚 Prime Video deal draws the lines of power in streaming: Growth in SVOD is slowing significantly, leaving services little choice but to piggyback off larger platforms.

Amazon Prime鈥檚 massive subscriber base gives Prime Video a large potential audience. But it鈥檚 challenging to convert subscribers into viewers, even if they already have access to Prime Video. 蘑菇AV 3 in 10 Prime subscribers did not use Prime Video in 2024, according to Consumer Intelligence Research Partners (CIRP) data reported by Adweek.