Amazon is considering opening its video channels to advertisers. This lowers the bar to sampling of new content by consumers, while keeping the path to paid access open. Video discovery, which lays the path to cross-media engagement and binge watching ad-free programs for a fee, is the next great curation challenge.
Although AVD’s [Amazon Video Direct] current ad-supported program is comparable to YouTube’s offering, advertisers aren’t bullish on it yet. Media buyers said it doesn’t give out as much information about ad performance (including return on investment) compared to YouTube and doesn’t allow third parties to audit how well the ads are doing, with one media buyer calling it a “black box.” It’s also pricier than YouTube. For these reasons, many companies still think of YouTube as the de facto video platform to advertise on. But if A
Source: Amazon more serious about battling YouTube: ad industry sources