‘Citadel’ Shows the Power of Shoppable Ads for Prime Video; Will More Streamers Adopt the Technology?
“Citadel” has been a certified hit for Prime Video. The show is driving big ratings for the service despite the ambivalence of critics, and has already been greenlit for a second season. The success doesn’t stop there; several spin-off series intended for international markets are in the works as well.
“Citadel” is hardly an innovative series in terms of plot, but it does have one feature that is very modern indeed: shoppable ads. Users who pause while watching “Citadel” can select a “Shop the store” icon, which will bring up a QR code that directs them to the show’s retail site on Amazon. Once there, users can find show merchandise, and even fashion brands that will allow them to dress like the characters on the series.
The ads allow Amazon to take advantage of its position as a streaming provider and a retailer all at the same time. It gives the company another way to capture consumer spending, and encourages Prime Video users to think of Amazon as their primary retail outlet, if they don’t already do so. It even drives more users to Amazon Prime, since many of the products they browse on the “Citadel” store will offer next-day delivery if they sign up for Prime.
The shoppable ads on shows like “Citadel” are just one of the ways Prime Video is getting creative with its advertisements. In May of 2022, Amazon unveiled a new advertising tool: virtual product placement (VPP). This function allows for things like billboards, signs, and screens within a show to have different messaging throughout the show’s life on Prime Video. The company said that an unnamed consumer products goods business saw a 14.7% increase in purchase intent for their campaign after using VPP, and a 6.9% increase in brand favorability.
Prime Video is not the only streaming service to have trotted out shoppable ads, but if it finds success more streaming companies could begin to ramp up their offerings as well. Paramount+, for example, would find a ready-made retail partner for shoppable ads in Walmart. The retail giant chose Paramount+ to partner with for its new shopping subscription service Walmart+ in 2022, and putting shoppable Walmart pause ads on Paramount+ titles would be clearly beneficial to both companies.
Disney has been attempting to enhance retail revenues with its streaming platforms, as well. In November 2022, select Disney+ subscribers got access to early merchandise releases and special discounts. There has been no word from the company on whether that program was a success, but many Disney+ users were also directed toward unique shopping opportunities on the Disney+ splash page for Season 3 of “The Mandalorian.”
Unlike most other streamers, Amazon gets to keep 100% of the revenue from shoppable ads, because the ads direct customers to its own retail website. That means users should expect more such ad campaigns on Prime Video shows, and shouldn’t be surprised if the technology spreads more widely to other streaming users.
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.