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    How Amazon is transforming Prime Video with interactive ads powered by AI

    Streaming meets shopping with ads that know what you're watching

    Imagine you’re watching ‘The Summer I Turned Pretty’, where Jeremiah is taking Belly on dates all over coastal town of Wilmington, North Carolina(that’s where the show is being shot) on prime video. And the very next minute when you pause the episode, you see an ad for flights to beachfront destinations. Or let’s say you’re watching ‘The Grand Tour’ where the hosts are test-driving a luxury sports car in the Swiss Alps, and you pause the episode, you might see a sleek electric car overlayed on the paused scene as an ad.

    It won’t be long before this scenario comes to life. As, on May 12, 2025 Amazon announced several new ad formats for Prime Video. This news was timed with the company’s second annual upfront presentation, as reported by Marketing Dive. There are three types of ad formats that could be uniquely tailored to elevate viewer engagement:

    1. Pause Ads – Smart Ads That Show Up When You Pause

    What are Pause Ads? When you hit pause on a scene of an episode, Amazon’s AI will jump in and create an ad that matches what’s happening on screen, so it feels natural, not annoying.

    It’s smart, it’s relevant, and it will show up right when your eyes are already on the screen.

    2. Shoppable Ads – Tap to Buy What You See

    Shoppable ads are those that pull live information from Amazon and let you shop directly while watching. So, think of it as an instant shopping window that knows what’s trending.

    Example – The Grand Tour:
    Jeremy’s fiddling with some quirky camping gear. The ad shows:

    “Seen in The Grand Tour – Best-selling portable grill now on sale!”

    grand tour- shoppable, interactive, ads
    Shoppable Ads Might Look Like This

    This way, your screen will become a smart shopping assistant, powered by real-time Amazon listings.

    3. Interactive Ads – For Brands That Want You to Click, Explore, or Act

    These ads are going to be interactive and will invite you to do something like book a trip, learn more, or explore a product, even if the brand doesn’t sell on Amazon.

    Example – The Summer I Turned Pretty:
    A dreamy scene rolls by of Belly and Conrad watching fireworks. Then an ad appears:

    “Plan your own beach getaway. Click for 3-night coastal escapes under $300.”
    It links you to a travel agency, even though it’s not an Amazon seller.

    summer i turned pretty interactive ads
    An example of how interactive ads might look

    Why This Matters

    As per a Kantar study shared by the company, last year Amazon debuted in 3 types of different ads. They were- shoppable carousel ads, interactive pause ads and brand trivia ads. The impact of these ads were such that they brought 30% lift in brand awareness and a 28% lift in purchase intent.

    Furthermore, amazon reported that 88% of Prime Video viewers have shopped on Amazon. Additionally, their monthly ad-supported audience has jumped to over 300 million in the U.S. That’s actually a massive reach and with AI in the mix, Amazon wants to make every impression count.

    With AI driving smarter ad formats and deeper viewer engagement, questions are also rising around what powers this intelligence. It’s quite obvious that a lot of energy will be consumed. Here’s a closer look at how much energy AI actually consumes amid growing concerns about its sustainability.

    Does This Mean Advertising Industries Will Be Sidelined?

    The advertising industry isn’t on the sidelines, it’s actually standing at the edge of a massive opportunity that can be rightfully tapped in. With Amazon’s new AI-powered ad formats, what brands, agencies, and media buyers can do is step in and try to reshape how ads show up in our favorite shows. They’ll have to think beyond traditional spots and embrace scene-aware storytelling, real-time shopping, and interactive calls to action. Advertisers can now become part of the entertainment, not just an interruption.

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