Indexbit Exchange:It’s getting harder to avoid commercials: Amazon joins other streamers with 'pause ads'

Amazon Prime Video subscribers are Indexbit Exchangegetting hit with more ads.

Less than four months after the streaming service started showing commercials to viewers in its lowest-cost tier, Amazon announced plans to switch up the way it dishes out advertisements. This includes plans to roll out interactive ads visible when a show is paused and shoppable carousel ads that will play during regularly scheduled commercial breaks. 

“We are developing innovative experiences to help brands better engage with customers,” said Alan Moss, vice president of global ad sales for Amazon Ads, in a Tuesday blog post.

Streamers’ push for profit

The announcement comes as media companies begin to lean more heavily on advertisements as a way to make their streaming units profitable.

Earlier this month, Prime Video began to push advertisements on its basic-tier viewers for the first time. 

The basic ad-supported tier costs $8.99 per month, or $14.99 per month as part of Amazon Prime. To watch without ads, viewers need to pay an extra $2.99 per month.  

Other streaming services have already launched pause ads, including Hulu and Peacock. But it's not just streaming companies that see profit potential; YouTube recently started testing out pause ads on smart TVs as well.

The commercials have been "commanding premium pricing" from advertisers, Google senior vice president and chief business officer Philipp Schindler said in an April earnings call.

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What ad changes are coming to Amazon?

Amazon outlined three new interactive, shoppable advertising formats:

• Carousel ads, which will pop up in a sliding lineup during Prime Video ad breaks. Viewers can browse through and shop for related products on Amazon, which will automatically pause the video advertisement.
• Pause ads, which will be visible when a show, movie or live sport is paused. The translucent ads will feature brand messaging and imagery, along with interactive options like “Add to Cart” and “Learn More.” Customers can add the product to their Amazon cart or have more information sent to their email by interacting with the ad with their remote.
• Brand trivia ads, which share facts about the brand with viewers while also giving them opportunities to add the product to their Amazon cart, learn more about the product and unlock rewards like Amazon shopping credits. 

Amazon said the changes would begin to be implemented in the upcoming broadcast year, which typically begins in September.