What is the story about?
What's Happening?
Amazon and Netflix have announced a partnership to integrate Netflix's ad inventory into Amazon's Demand Side Platform (DSP). This collaboration aims to provide advertisers with greater flexibility in their marketing strategies by leveraging Amazon's advanced capabilities. The integration is set to begin in the fourth quarter of this year and will be available in multiple countries, including the United States, United Kingdom, and several others. Amy Reinhard, Netflix's president of advertising, emphasized the alignment of this partnership with Netflix's commitment to enhancing advertiser flexibility and connecting with a global audience.
Why It's Important?
The partnership between Amazon and Netflix is significant as it simplifies options for marketers who utilize multiple DSPs for purchasing inventory. By integrating Netflix's ad-supported tier with Amazon's DSP, advertisers can programmatically buy advertising across major U.S. streaming services, enhancing their reach and efficiency. This deal highlights Amazon's rapid expansion in the advertising sector, not only as a streaming platform operator but also as a backend service provider. The collaboration is expected to drive more advertisers to Amazon's DSP, potentially shifting budgets from other platforms due to improved user interface and lower fees.
What's Next?
The integration of Netflix's ad inventory into Amazon's DSP is scheduled to commence in Q4, providing marketers with new opportunities to reach Netflix's engaged audience. As the partnership develops, advertisers can expect more advanced capabilities and streamlined processes for managing TV planning and buying through Amazon Ads. This move may prompt other streaming services to consider similar partnerships, further transforming the advertising landscape.
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