Amazon Revs Its Advertising Power: Launches Video Ads Powered By FreeWheel

Amazon and FreeWheel, a video advertising technology provider, announced today that they have partnered to bring short form video advertisements to the ecommerce marketplace. Users will start to see more game trailers, movie trailers, how-to videos, and other endemic video content across several product categories in the search results.

The companies say the videos will integrate relevant brands and ecommerce advertising experiences within the content. Call-to-action buttons such as “Shop Now” in a video game trailer will lead users to that title’s page on Amazon with a single click. Movie trailers may include a short pre-roll advertisement targeted to new customers.

“Our customers love video. We’re excited to be connecting customers and advertisers through our video content, in ways that help customers discover and learn about great, relevant products,” said Lisa Utzschneider, Vice President of Global Advertising Sales for Amazon Media Group in the announcement. “We benefit from FreeWheel’s video advertising expertise as we work to provide a great customer and advertiser experience.”

It’s somewhat surprising that Amazon has partnered with a third-party on video advertising rather than building the technology in-house. FreeWheel’s video ad management platform will manage ad rights and serve the video advertising. Amazon, which arguably knows more about its users than any other web or retail property, will be able to hone their video ad targeting with particular precision.

The addition of video advertising, including pre-roll, opens up another advertising revenue stream from a wider berth of categories. In June of last year, eMarketer reported that Amazon’s ad revenue increased 45 percent to top $600 Million in 2012. Ad revenue was expected to hit $835 in 2013.