Prime Video Expands Ad Strategy with New Disney Veteran at Helm

Amazon.Com Inc AMZN has recruited Jeremy Helfand, a former Walt Disney Co DIS and Hulu executive, to lead its advertising efforts for Prime Video. 

Helfand, known for his advertising innovation at Disney, will join Amazon as the Vice President and Head of Advertising. 

This move coincides with Amazon's plan to introduce a new ad-supported tier on Prime Video, the Variety reports.

Advertising has been an area of growth for Amazon, growing by 21% year over year to $9.5 billion in the first quarter. It is the third-biggest player in terms of digital ad revenue in the U.S. 

Also Read: Big Streaming Companies Have Realized They Need An Ad Tier; Collaborate With GroupM to Streamline Ad Processes

In this new role, Helfand will likely play a key role in launching and expanding the ad-supported subscription plan, which will become the default for Prime Video users. 

Those preferring an ad-free experience will need to pay an additional annual fee. During his tenure at Hulu and Disney, Helfand was instrumental in developing unique ad formats tailored for streaming services, such as "pause ads," which appear when viewers take a break from watching.

Amazon's foray into the streaming ad wars follows a trend where media companies seek experienced advertising professionals to lead their initiatives. 

Comcast Corp CMCSA NBCUniversal, for instance, recently appointed Roku, Inc's ROKU Alison Levin to oversee ad support for its essential properties. 

Similarly, Netflix Inc NFLX enlisted Peter Naylor, a veteran of NBCUniversal and Hulu, to manage sales for its ad-supported tier.

Amazon has already demonstrated success in ad sales, notably selling out commercial inventory for its "Black Friday" NFL game stream. 

The company is known for its high pricing and volume demands in ad sales. With Helfand's expertise in crafting innovative ad formats for streaming audiences, he will likely bring familiar strategies and potentially new ideas to Amazon's advertising approach on its Prime Video platform.

Price Action: AMZN shares traded higher by 0.31% at $145.03 on the last check Friday.

Also Read: Is the Streaming Bubble Bursting? Significant Portion Of Users Cut Multiple Subscriptions

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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