Amazon bets on AI to improve the relevancy of ads shown when you pause

Amazon‘s new AI-powered pause ads represent a significant evolution in streaming advertising technology, enabling contextually relevant commercials that respond directly to the content being viewed. This development marks a strategic shift in how streaming platforms monetize content without disrupting the traditional viewing experience, potentially creating more engaging advertising that viewers might perceive as extensions of the entertainment rather than unwanted interruptions.

The big picture: Amazon is enhancing pause ads with artificial intelligence that can analyze what viewers are watching and dynamically generate contextually relevant advertisements when users halt their streams.

• The technology aims to create advertising that naturally aligns with program content rather than using generic pause messaging.
• This approach could transform what has been a static advertising format into a more sophisticated, content-aware commercial experience.

How it works: The AI technology immediately analyzes the show or movie being watched to understand scene attributes and generate appropriate pause-screen promotions.

• Viewers pausing during emotional scenes might see ads for products like tissues or eye drops, while those halting during action sequences could encounter promotions for featured vehicles.
• The system creates what Amazon describes as a “contextual advertising experience that dynamically aligns the ad message with the content viewers are watching.”

Industry context: Streamers have been experimenting with pause ads since 2018, when Hulu pioneered the format with brands like Coca-Cola and Procter & Gamble.

• Amazon bolstered its pause ad capabilities in 2024 by hiring Jeremy Helfand from Disney, who had previously helped launch pause ads at Hulu.
• The format represents streaming platforms’ efforts to monetize content while respecting viewers’ growing resistance to traditional commercial breaks.

Behind the strategy: Streaming executives view pauses as natural interruptions in viewing that can be monetized without significantly disrupting the user experience.

• Most existing pause ads employ standard messaging referencing the act of stopping rather than the content being watched.
• Amazon’s VP of global ad sales, Alan Moss, positions these new ads as “extensions of the entertainment experience, not interruptions.”

Potential challenges: The AI-powered contextual approach could lead to problematic ad placements if the technology misinterprets content or creates inappropriate connections.

• Incorrect or offensive AI-generated pause ads could damage both Amazon’s reputation and advertiser relationships.
• The technology will likely require careful monitoring and refinement to avoid awkward or inappropriate advertising moments.