Lookout TV ad sales universe, it looks like Amazon is getting ready to jump into your sandbox. According to Digiday, Amazon is developing a free ad-supported version of their Fire TV app. While whispers of this new platform have been circulating since the summer, we’re now starting to see signs of life including job postings for Digital Video sellers in the major agency hub markets.
The key ingredient for Amazon to start selling OLV is inventory. To solve for this Amazon is requiring digital video content providers who run on the platform to turn over 30% of their ad inventory to Amazon – this will give their new salesforce something to sell. To add some addressable scale, Amazon will also include inventory in its “Thursday Night Football” livestreams, which can be viewed with a basic Amazon Prime subscription.
I wouldn’t expect Fire TV’s ad sales to put NBC out of business any time soon, but it’s at least a way for Amazon to dip its toe into the OLV game. As we’ve seen before across several other business sectors, once Amazon cracks its way into a new industry they often end up dominating it a few years down the road.
Stay tuned . . .