Amazon is laying the foundation for a giant video advertising business, says Re/Code. According to eMarketer, Amazon’s ad revenue is expected to top $800 million in 2013, which represents only about one percent of Amazon’s overall revenue.
Today, however, Amazon announced a deal with video ad company FreeWheel to provide the technology for Amazon to build out its video advertising business. FreeWheel puts the right video ads in front of the right Amazon customers, using behavioral targeting to increase advertising effectiveness.
FreeWheel has been working with Amazon to serve video ads into a selection of TV show episodes on the Kindle Fire, according to Amazon ad boss Lisa Utzschneider. She said Amazon worked out deals with television networks last year to stream the first episode of hundreds of TV shows for free on the latest models of the Kindle Fire tablet.
If Amazon starts seeing a lot of demand from advertisers for these digital commercials, one could imagine Amazon working out some deals to expand the number of episodes or shows offered for free through an ad-supported model, concludes Re/Code.
Last month, Amazon Instant Video announced it is working with top Hollywood studios and TV programmers, including Samsung, Warner Bros., Lionsgate, 20th Century Fox, Discovery and others to offer customers a premium 4K Ultra HD movies and plans to shoot all 2014 full original series, including comedies and dramas, in 4K Ultra HD.
Time Warner said HBO generated $1.3 billion in revenue in the last quarter of 2013 and $4.9 billion for 2013, notes The Verge. However, Netflix is growing faster, generating almost as much revenue as HBO in the last quarter of 2013 — $1.2 billion — from a much smaller user base, and generating $3.75 billion revenue for 2013.
I’m no wireless guru, but it seems inevitable to me that some kind of branded WiFi/Smallcell, using 2.4/2.5 GHz, will carry video payloads home. Google, Facebook, Apple and Amazon could make their moves at MWC. I can’t wait!
Related Dailywireless articles include; Ad-Sponsored WiFi Initiatives from Gowex & Facebook, Behavioral Targeting: Kill/Capture, Cities of San Jose and Santa Clara Get Free WiFi, Free WiFi for 31 SF Parks, Ubiquiti Launches “Revolution”, Cloud-based WiFi: $100 a Pop, Subsidized Access Vs Free Access, Free Google WiFi for NYC Chelsea Neighborhood, Meraki Proposes Free SF Wi-Fi Network, Cities of San Jose and Santa Clara Get Free WiFi, Free WiFi: It’s a Right!,