What is the story about?
What's Happening?
Amazon and Netflix have entered into a major advertising deal to bring Netflix's ad-supported tier inventory to Amazon's Demand Side Platform (DSP). This integration will be available to marketers in various countries, including the United States, starting in the fourth quarter. The partnership allows Amazon to programmatically buy advertising across all major U.S. streaming services, enhancing its DSP capabilities. Amazon already has similar deals with other streaming platforms like NBCUniversal, Warner Bros. Discovery, and Disney, further solidifying its position in the advertising industry.
Why It's Important?
This deal is crucial as it underscores Amazon's growing influence in the advertising sector, not just as a streaming service provider but as a comprehensive backend service. By integrating Netflix's inventory, Amazon simplifies the advertising process for marketers, offering them a more collaborative partnership model and greater measurement visibility. The partnership is expected to attract more advertisers to Amazon's DSP, potentially impacting the advertising strategies of other streaming services and DSPs.
What's Next?
The integration is set to begin in Q4, providing advertisers with new opportunities to reach Netflix's audience through Amazon's DSP. As the partnership evolves, advertisers can anticipate enhanced capabilities and streamlined processes for managing their advertising campaigns. This development may lead to increased competition among DSPs and streaming services, prompting further innovations in the advertising industry.
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