Amazon to launch ‘Sponsored TV’ to democratize OTT advertising

Amazon India's advertising head, Girish Prabhu, announced the launch of Sponsored TV, an advertising platform set to debut in 2025. This initiative aims to empower businesses of all sizes to advertise on OTT platforms such as MX Player, tapping into India’s expansive digital streaming audience of 500 million viewers.

Sponsored TV is designed to democratize premium video advertising, offering a self-service tool that allows businesses—from small sellers to large brands—to reach targeted audiences efficiently.

“Sponsored TV is designed to bring premium video advertising to businesses of every size. Whether you’re a small seller or a large brand, this self-service tool will help you reach the right audience. With more than 25 crore users on MX Player alone, the potential to connect with customers at scale is enormous,” Prabhu stated at the Amazon Sambhav event in Delhi today. 

While Amazon holds an 8.8% share of the global digital advertising market, it continues to make significant inroads against leaders Alphabet (27.7%) and Meta (22.8%). In comparison, Meta reported a 19% YoY increase in ad revenue, reaching $39.9 billion in Q3 2023.

Amazon’s ad innovations, including the integration of Sponsored TV and ad-supported Prime Video content, position the company as a formidable player in the competitive digital advertising space.

In addition to Sponsored TV, Amazon has already transformed ad creation with the launch of two AI-powered tools in September—the Image Generator and the Video Generator. These tools simplify the creation of ad-ready visuals and videos, significantly reducing production costs and time. Prabhu illustrated their impact: “With our AI tools, you can now create variations of images and videos instantly, test them across platforms, and see what works—all at no cost.”

The Image Generator allows for customized images featuring seasonal themes, festive backdrops, and special effects, while the Video Generator leverages AI to analyze product descriptions and customer reviews to produce promotional videos in seconds. “Think about a health energy drink against a plain white background. Is it healthy? Full of sugar? Made of fruits? You don’t know. But now imagine that same drink next to a woman who just finished exercising—suddenly, you’ve communicated a healthy lifestyle. This connection can now be created in just one click,” Prabhu explained.

Ahead of Diwali, Amazon Ads introduced the Seller Ads Wallet, a prepaid solution aimed at simplifying ad payments and preventing campaign disruptions due to overdue payments. This feature allows advertisers to preload funds, ensuring their ad campaigns continue seamlessly even if there are payment delays.

Sponsored TV extends Amazon’s AI-powered creative capabilities to OTT platforms, offering premium video placements during popular shows. Prabhu highlighted the platform’s potential with an example: “Imagine your headphone ad appearing during a show like Hip Hop India on MX Player, which is watched by millions of people. The association between high-quality headphones and music just clicks, creating a meaningful connection between your brand and the consumer.”

Backed by Amazon’s extensive ecosystem of data, Sponsored TV combines buying, browsing, and streaming habits to deliver highly targeted ads. It also provides full-funnel metrics, offering advertisers detailed insights into ad performance— a feature often lacking in traditional OTT advertising. “This platform isn’t just about reaching millions of people; it’s about making every rupee work harder for your brand,” Prabhu emphasized. “With the data-driven insights we provide, businesses can measure the impact of their ads and refine their strategies to get better results.”

Integrated into Amazon’s familiar Ad Console, Sponsored TV is built for ease of use and scalability. Businesses can manage their advertising campaigns directly or choose to work through Amazon’s certified partners for a more hands-off approach. “OTT platforms are where 500 million Indians spend their time today, and we want to make it easy for every business to meet their customers there,” Prabhu added. “Sponsored TV is built for scale and simplicity, helping businesses of all sizes connect with their audiences in meaningful ways.”

With the introduction of Sponsored TV and its suite of AI-powered tools, Amazon India is setting a new benchmark in advertising innovation. These initiatives aim to democratize advertising, enabling businesses to create captivating content, reach vast audiences, and achieve measurable results with minimal effort. “Our mission is to empower every business to tell its story, captivate its customers, and drive action,” Prabhu concluded. “From AI-powered visuals to Sponsored TV, we’re giving businesses the tools they need to succeed in today’s competitive landscape.”