Announced at Amazon Ad’s annual event, unBoxed, Amazon has further expanded its suite of AI-powered tools to transform how brands connect with consumers and help improve brands’ overall campaign performance.
Building on their existing GenAI-powered tools, Amazon Ads has introduced an AI-driven audio generator that enables the creation of compelling audio ads at scale and reaches relevant audiences as they listen to content on Alexa-enabled devices.
This is the latest development, building on earlier releases – such as Amazon’s GenAI-powered image and video generation tool, designed to empower advertisers, and their agencies, to create custom lifestyle images and videos for their products more dynamically.
Housed within the newly released AI Creative Studio, which brings this new suite of tools together, users will be able to create, experiment, and refresh ad content in one place, streamlining the process of generating different ad formats at scale, without needing extensive time, budget, or expertise.
Key features and Benefits:
- Consumer Demand: With the ever-increasing demand for brands to create more varied content to capture consumers’ attention, these tools enable brands to create a more engaging and informative ad experience through curated audio, image, and video content.
- Time-Effective Solution: Significantly reducing the time required to produce content, these tools can create content at pace and scale, allowing previously used resources on production to be better utilized for creativity and innovation.
- Improved Sponsored Brand Campaigns: Utilizing Amazon’s retail insights, the Video generator tools use Amazon’s retail insights to create relevant product stories that enhance customer engagement.
These innovative generative AI tools address a critical challenge faced by many advertisers/agencies. A March 2023 Amazon survey revealed that nearly 75% struggling with campaign success identified creative development as their primary obstacle. By introducing AI-generated imagery, video, and audio content, Amazon is effectively leveling the playing field, allowing businesses of all sizes to:
- Rapidly experiment with diverse creatives across different target audiences.
- Visually communicate additional product details and benefits.
- Craft seasonal or context-specific images, videos, and audio to highlight various product applications.
- Produce multiple creative variations without the need for extensive resources or time investment.
Early Performance Indicators:
While specific case studies are limited, early feedback and performance data from advertisers have been overwhelmingly positive. According to Amazon Ads findings, on average, brands who used the Image generator between October 2023 and June 2024 saw almost 5% more sales per advertiser. Many users report significant improvements in their campaign metrics:
- Click-Through Rates (CTR): Campaigns utilizing custom images in Sponsored brand ads on mobile have seen over a 40% higher CTR compared to those using only product images.
- New Customer Acquisition: Sponsored Brands ads observed a 19% increase in purchases made by new-to-brand customers compared to those not using these ad formats.
- AI vs. Traditional Creatives: Preliminary data suggests that creatives using AI-generated images perform on par with those using non-AI custom/lifestyle images, validating the tool’s effectiveness.
Looking Ahead:
Amazon’s commitment to enhancing its AI Creative Studio with these generative AI tools is evident in its roadmap through 2024. Plans include expanding access points within the advertising console, integrating the tool into Creative Tools, Sponsored Display Creative Builder, Stores Builder, Posts, and selecting Amazon DSP templates. This expansion signifies Amazon’s belief in the transformative potential of AI-generated content for digital advertising.
Implications for Advertisers/Agencies:
- Increased Agility/Efficiency: Advertisers can quickly adapt to market trends, seasonal changes, or current events by generating relevant imagery or video on demand.
- Data-Driven Creativity: The AI’s ability to learn from performance data may lead to increasingly effective creative suggestions over time.
- Scalability: Advertisers can easily create multiple variations of ads for different products or audiences, enabling more personalized and targeted campaigns.
- Asset Management: Many large enterprise brands have a product & campaign content value chain that builds, approves, and deploys Amazon content centrally. There is a risk that this tool disrupts that process. Brands must consider how the new AI-generated creative is absorbed back into the PIM/DAM as standard assets.
In conclusion, Amazon’s AI tools represent a significant shift. As the tools evolve and expand their reach, they are poised to become an indispensable asset in many advertisers’ and agencies’ arsenals, potentially reshaping the landscape of e-commerce marketing. With many global brands focusing on reducing creative production costs to invest back into working media – those who embrace these new technologies early may find themselves at a significant advantage in capturing consumer attention more cost-effectively in an increasingly crowded digital marketplace.