Amazon Ads is revolutionizing CTV advertising with hyperlocal targeting and interactivity on Prime Video

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At a time when connected TV has become an essential component of media strategies, Amazon has decided to make its move. With more than 50% penetration in Spanish households, OTT platforms are no longer just an alternative—they’re part of people’s daily media consumption. And in this landscape, Prime Video—with more than 11 million unique users per month—has established itself as one of the most effective gateways for reaching audiences that linear TV has been gradually losing.

The latest development from Amazon Ads is no small matter. The company has launched an interactive format on Prime Video that allows ads to be targeted by ZIP code. Put another way: for the first time, connected TV is able to combine the power of streaming—massive, incremental, and hard to avoid—with the surgical precision that until now was reserved for the digital environment. This combination opens up a whole new world for brands—not just for large ones, which now have a way to further refine their strategies, but also for local businesses that never imagined they could appear on television with this level of precision.

The proposal gains even more traction when you consider the approach Amazon has taken in designing this format. It’s not simply a matter of serving ads that are more geographically relevant; it’s about incorporating interactivity—allowing viewers to respond, explore, and take action right within the streaming environment itself. The result is television that is no longer just a medium for exposure but rather a space where the brand–user relationship can evolve, deepen, and—in many cases—lead to conversion.

All of this is accompanied by one of the factors that is driving investment in CTV the most: measurement. Campaigns on Prime Video can now analyze incremental reach, optimize frequency, measure engagement, and attribute visits to both physical stores and online channels. This hybrid ecosystem makes CTV one of the few spaces where branding, direct response, and rigorous business analytics coexist.

In Spain, this launch is entering a market that is particularly well-prepared. The rise of streaming has made premium content more accessible to everyone, and targeting by ZIP code provides an additional boost for small and medium-sized businesses and advertisers with a strong local presence. They can now run campaigns tailored to specific areas, adapt messages for individual retail locations, or target specific audiences with the high-quality production values once reserved for national campaigns.

However, it’s not as simple as launching a campaign and letting it run. Geotargeting requires rethinking creative processes: working with multiple versions, using dynamic feeds, or relying on solutions that automate these variations. The same is true for attribution: linking in-store traffic to ad impressions requires a data strategy, integration, and consistent models. At the same time, the sensitive nature of hyperlocal data makes it essential to treat privacy as a central concern, especially in a context shaped by GDPR regulations.

This breakthrough not only marks a turning point for the industry, but also redefines the role of creativity and strategy in television. As Juan de Guindos, General Manager of HMG at MIO Group, explains, we are at a turning point:

“The evolution of media—and in this case, OTT platforms—means that we’re not only able to reach an audience of low TV viewers that we were previously struggling to reach, but also, together with generative AI, we’re getting closer and closer to this hyper-segmented communication we’ve been talking about—not just in terms of the medium, but also in terms of creativity—reaching our target audience in a more optimized way that’s better aligned with their needs.”

His words clearly sum up what this movement stands for: television that is smarter, more flexible, and more connected to the user’s context. Television that is no longer a rigid channel but rather a living platform, capable of adapting almost in real time to what’s happening in every neighborhood, every store, or for every user profile.

Amazon Ads’ focus on hyperlocal targeting and interactivity confirms something we’ve long suspected: CTV is no longer just a channel for brand awareness. It is a measurable, actionable, and accessible platform for both large advertisers and local businesses. A TV that you don’t just watch—it responds to you, too.

Content written by AI under human supervision and editing