>> Amazon making it's first big push into live sports by streaming NFL games this fall, and charging an arm and a leg for advertizing. The hefty $2.8 million price tag, however, not just for football, but rather the cost of a total ad package that will allow companies to sprinkle spots throughout the site.
A potentially appealing proposition for advertisers and a big play for Amazon as Reuters media correspondent, Jessica Toonkel, explains.>> This is another sign of how Amazon is trying to use the NFL games and content in general to drive more business to it's Prime division.>> The $99 service offering streaming video and free shipping, now with more than 50 million members in the US, nearly one sixth of the countries total population, but, why stop there?
CEO Jeff Bezos shelled out a reported $50 million for the rights to live stream ten NFL games, that's five times what Twitter paid for the same privilege last year. It's a sum Amazon is not likely to make back and that's okay, says Toonkel.>> NFL games are the most watched live sports in the world, so they can use it to draw more people to their sight to buy more things then it becomes profitable for them.
>> But how many advertisers will bite remains to be seen, as they can spend about one fifth of the price for ads on CBS or NBC, where the games are also airing.>> So the big question that I'm getting from advertisers is, how targeted will these ads be?
So Amazon is saying, we are promising you 10% of people who view the games will view your ads. The question is, is that 10% of all viewers of the games, or is it just 10% of the specific audience that those advertisers are trying to reach?>> The ability to cherry-pick an audience of prime importance to advertisers, particularly when it comes to targeting elusive young males.
Capture those eyeballs on Amazon, and its NFL gamble could produce several winners.>> Woo!