Key Takeaways
- Sponsored TV: Self-service from 2026, no minimum budget. 15-30 second spots on Fire TV, Prime Video, and Freevee.
- AI Features: Performance+ optimizes campaigns automatically with 75% less setup time. Creative Agent generates video creatives via AI.
- Shoppable Formats: Interactive Video Ads on Prime Video enable direct purchase during streaming.
- Audio Ads: 30-second non-skippable spots on Amazon Music. New touchpoints beyond the screen.
- CPM Ranges: Display $8-$15, Video $15-$30, OTT/Streaming $25-$45. Full-funnel approach becomes standard in 2026.
Amazon is massively expanding its advertising ecosystem in 2026. Beyond classic Sponsored Products and Sponsored Brands Video, brands now have access to entirely new formats: streaming TV advertising, interactive shoppable formats, and AI-powered campaign optimization. What was previously only accessible to large enterprises with six- to seven-figure budgets is being democratized in 2026.
This guide gives you a complete overview of the new ad formats, their use cases, and expected costs. If you want to refresh the fundamentals first, read our PPC strategy guide for 2026.
Amazon's advertising revenue exceeded 50 billion USD in 2025 and continues to grow at double digits. For the company, ad formats are now more profitable than AWS. This explains the massive expansion of advertising capabilities, which even smaller sellers can benefit from.
Sponsored TV: Self-Service for All Brands
Sponsored TV is Amazon's biggest leap into streaming advertising. From 2026, the format is available as self-service with no minimum budget. Advertisers can run 15- to 30-second spots that play on Fire TV, Prime Video, and Freevee.
Billing is CPM-based (Cost per Mille). Compared to classic display ads ($8-$15 CPM), streaming video costs range from $25-$45 CPM. This sounds steep at first but is put into perspective by the enormous reach and high engagement rates. Fire TV alone reaches over 5 million households in Germany.
Targeting Options
Sponsored TV leverages Amazon's first-party data for precise targeting. Available segments include demographics, purchase behavior, in-market audiences (users actively searching for specific product categories), lifestyle segments, and retargeting based on product views or cart abandonment. For sellers without DSP experience, this is a major opportunity. More details in our Amazon DSP guide.
Performance+ and Brand+: AI-Optimized Campaigns
Performance+
Performance+ is Amazon's answer to Google's Performance Max and Meta's Advantage+. The AI automatically optimizes bids, placements, and audiences. Sellers only need to define budget, target ACOS, and creatives. Amazon promises 75% less setup time with comparable or better performance versus manual campaigns.
Brand+
While Performance+ optimizes for conversions, Brand+ focuses on awareness metrics. Machine learning analyzes brand lift, share of voice, and reach to automatically align campaigns for maximum brand awareness. Ideal for product launches and seasonal awareness campaigns.
Creative Agent
The Creative Agent is an AI tool that automatically generates video creatives from existing product images and data. Sellers upload images and USPs, and the AI creates finished 15- or 30-second spots with music, text overlays, and calls-to-action. The quality is not agency-level, but absolutely sufficient for initial testing and iterations.
Interactive Video Ads and Audio Ads
Shoppable Video on Prime Video
Interactive Video Ads allow viewers to add products to their cart directly while streaming. A QR code or interactive overlay appears during the spot. Viewers can click with their remote or scan via smartphone and land directly on the product page. This format bridges the gap between awareness and conversion in a single touchpoint.
Audio Ads on Amazon Music
30-second audio spots on Amazon Music reach users in moments when they are not looking at a screen: during workouts, cooking, or commuting. The spots are non-skippable and play between songs. A companion banner can be displayed in the Music app. CPM ranges from $10-$20. Audio Ads are particularly suited for brand awareness and complement visual campaigns with an acoustic touchpoint.
Full-Funnel Campaigns: Everything in One Workflow
Amazon is testing an integrated full-funnel format for 2026 that combines display, video, and streaming in a single campaign workflow. Instead of setting up separate campaigns for each funnel stage, sellers define an overarching goal and budget. Amazon's AI automatically distributes the budget across the most efficient formats and placements.
CPM ranges at a glance: Display $8-$15, Standard Video $15-$30, OTT/Streaming $25-$45. With full-funnel campaigns, the effective CPM can be lower since the AI performs budget shifts in real time. For most sellers, we recommend starting with individual formats and switching to full-funnel after 2-3 months of experience.
Recommended Strategy for 2026
- Step 1: Optimize existing PPC campaigns (Sponsored Products + Sponsored Brands Video).
- Step 2: Test Sponsored TV with a small budget ($500-$1,000/month). Use Creative Agent for initial video creatives.
- Step 3: Activate Performance+ for conversion campaigns and benchmark against manual campaigns.
- Step 4: If results are positive, add Audio Ads and Interactive Video Ads.
- Step 5: Test full-funnel campaigns once the format becomes generally available.
Important: The new formats do not replace the proven Sponsored Products and Sponsored Brands. They complement them. A solid PPC foundation remains the backbone of any Amazon advertising strategy. The new formats are the next lever for brands looking to grow beyond pure search ads.
Creative Requirements for Sponsored TV
The technical requirements for Sponsored TV spots differ significantly from display creatives:
- Video Length: 15 or 30 seconds. Shorter spots for awareness, longer ones for storytelling and product showcases.
- Resolution: Minimum 1920x1080 (Full HD), recommended 3840x2160 (4K) for Fire TV.
- File Formats: MP4 or MOV, H.264 or H.265 codec, maximum file size 500 MB.
- Audio: AAC codec, stereo, minimum 192 kbps. Purely static images are not permitted.
- Safe Zone: Place important text and logos in the center 80% area, as edges may be cropped on different devices.
If you do not have your own video production capability, you can use the Creative Agent or access Amazon Creative Services, where vetted providers produce videos starting at approximately $500.