The news: Amazon has introduced Private Auction (PA) deals for its Prime Video ad inventory, offering a rare dose of pricing flexibility in the otherwise rigid world of connected TV (CTV) advertising.
Agencies Adweek spoke to have begun shifting spend into PA, attracted by the lower pricing and optimization tools like bid modifiers. These deals’ cost efficiency offers a valuable alternative—especially for performance-driven marketers who were previously priced out of high-end CTV inventory.
How it works: Unlike the typical programmatic guaranteed (PG) or private marketplace (PMP) deals, which use fixed CPMs, PA deals operate on real-time bidding and allow advertisers to bid within dynamic ranges.
- The trade-off? Marketers give up delivery guarantees in exchange for potentially lower rates; some buyers have paid as little as $22 CPMs, compared to the standard $28 on Amazon, Adweek reports.
- While Amazon isn’t widely promoting the offering, brands working through Amazon DSP can now see PA options alongside PG and PMP if enabled by an account representative.
Why it matters: Amazon’s quiet launch comes at a time when CTV advertising is experiencing downward pressure on CPMs across the board.