As the games will broadcast live on CBS and NBC this fall, Amazon intends to charge advertisers $2.8 million for packages that will sell 30-second spots during National Football League (NFL) games on its "Prime" service, according to Reuters last week Thursday. The world's largest online retailer reportedly offered advertising industries to advertise products and services to customers on the e-commerce website.
"We are offering a range of options at various price points, depending on advertisers objectives," Amazon spokesperson Kristin Mariani said.
Amazon-NFL partnership
In April, Amazon sealed a partnership deal that would pay the NFL approximately $50 million for one year. Customers will be able to access the Amazon's $99-per-year Prime service that has a fast shipping and free video package. The Seattle-based company also contains free marketing and promotion as a part of the deal that is worth additional $30 million.
Amazon took the place of Twitter, which paid $10 million to air 10 Thursday night games last season. The social media company charged advertisers between $2 and $8 million to sell spots. Additionally, industry sources cited that advertisers were also charged between $550,000 and $590,000 by television networks for ad spots.
The Thursday night games on NBC and CBS drew an audience average of 17 million and 14.7 million viewers, respectively.
Since the NFL is widely regarded as the popular sport in America, Amazon hopes that pushing customers to spend more time on the website and watch sports live online will boost its subscription business. Advertising is a source of revenue for the company, but, as it is reported, the Amazon's intention to recoup the investment through ad sales remains unclear.
Amazon buys Whole Foods in a deal
In addition to Amazon making a push into sports live, the company has purchased Whole Foods Market, known as the America's healthiest grocery store based in Austin, Texas, for 13.7 billion in cash, making it the biggest e-commerce acquisition in history.
The company created AmazonFresh, a web-based grocery delivery service that allows customers to order food online and pick them up at a convenience store.
"Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthily," Amazon founder and CEO Jeff Bezos said as of June 16, 2017. "Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades -- they're doing an amazing job and we want that to continue."
