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MediaRadar Study: Amazon Prime Video Overtakes Netflix as Top OTT Spender

Study revealed Amazon Prime Video surpassed Netflix as top OTT spender in 2019, with Netflix coming in second and Hulu remaining in third place

NEW YORK(13 Aug 2019)

MediaRadar, the leading advertising intelligence and sales enablement platform, released today its analysis of the top OTT platform spenders, comparing Q1 and Q2 of 2018 against Q1 and Q2 of 2019. The study found Netflix to be the biggest spender in the first half of 2018 (Q1 & Q2), followed by Amazon Prime Video in second place, and Hulu in third. During the same time period of 2019 (Q1 & Q2), the study revealed that Amazon Prime Video had surpassed Netflix for first place, with Netflix coming in second and Hulu remaining in third. 

“While spend amongst these top OTT providers can be volatile based around content releases, it is telling to see Amazon continue to invest in the platform and its original content, further enticing viewers to stay in, or even enter, the ‘Amazon Ecosystem’” said Todd Krizelman, CEO of Mediaradar.

Amazon Prime Video Ad Spend Breakdown

MediaRadar’s analysis found that Amazon Prime Video launched 13 new campaigns for its original content in the first half of 2019 (Q1 & Q2). Its largest campaign by spend was for its original show, “?Hanna,”? which included a full 60-second spot during the 2019 Super Bowl.

“Our recent OTT analysis showed that Amazon Prime Video has shifted to become the biggest OTT spender in the first half of 2019,” shared Krizelman. “It also highlighted that Amazon Prime Video’s jump to number one can in part be attributed to the heavy promotion of its new original content, including increased investment in native advertising. In fact, its native advertising spend rose 5X, year-over-year, when comparing 2018 and 2019.”

MediaRadar compared Amazon Prime Video’s spend in Q1 and Q2 of 2018 to its spend during that same time period in 2019, and discovered that it was the only OTT platform out of the three to increase TV spend year-over-year (+28%), with both Hulu and Netflix cutting back by more than -40%. The platform also increased digital spend by over +300% year-over-year, with large digital campaigns, featuring high CPM buys, behind its original shows, such as “Good Omens,” “The Boys,” and , “Hanna.” 

Netflix Ad Spend Breakdown

MediaRadar’s deep dive discovered that in the first half of 2019 (Q1 & Q2), Netflix launched 67 new campaigns for its original content. The largest of those campaigns being for its original series, ?”Our Planet?,” which saw a 30-second spot during the 2019 Super Bowl.

“Although Netflix’s spend on traditional advertising is down year-over-year,” said Krizelman, “Netflix’s latest shareholder letter showed that its spend for overall marketing remains fairly steady, as it experiments with new promotional initiatives, such as a “Stranger Things” game (mobile & console), and brand partnerships with companies such as Coke, Nike, Burger King, Baskin Robbins and Fortnite.”

When comparing Q1 and Q2 of 2018 against Q1 and Q2 of 2019, MediaRadar’s analysis showed that Netflix reduced spend across TV, print and digital, fairly evenly. It also found Netflix to be the only OTT platform to decrease digital spend year-over year (2018 - 2019).

Hulu Ad Spend Breakdown

According to MediaRadar’s study, Hulu launched six new campaigns for its original content in the first half of 2019 (Q1 & Q2), with its largest campaign by spend, during that time period, being for “The Act.” 

When comparing the first half of 2018 to the first half of 2019 (Q1 & Q2, respectively), it was also discovered that Hulu had the largest decrease in TV spend out of the three OTT platforms (-61%), but that it was also the only platform to increase print spend (+57%).

“Last year Hulu heavily promoted both ‘Castle Rock’ and ‘The Looming Tower’ on TV,” shared Krizelman. “But, with ‘The Looming Tower’ over and ‘Castle Rock’ season 2 not yet ready, neither program received promotion in Q2 of 2019,” he added.

About MediaRadar

MediaRadar revolutionizes ad sales by helping sales executives determine the best prospects to pursue, which offerings to pitch, and how to position themselves most effectively against their competitors in order to win more business. This SaaS sales-enablement platform is built on the most comprehensive and up-to-date database of multimedia advertising information available.