Amazon has introduced a range of new tools and features for advertisers, focusing on artificial intelligence (AI), its Demand-Side Platform (DSP), and comprehensive insights, as unveiled at its annual UnBoxed conference. These enhancements reflect Amazon’s effort to maintain its leading role in the retail media sector by helping advertisers streamline campaigns and optimize ad performance across its vast ecosystem.
AI-Powered Tools to Drive Efficiency
One of the highlights of the conference was the debut of Amazon’s AI creative studio, a self-service tool designed to generate ad creatives from a single product photo or asset. This feature, which integrates Amazon’s existing video and image tools, allows advertisers to seamlessly produce ads that can be used across Amazon platforms like Prime Video and Twitch. Complementing this is a new audio generator, which helps create 30-second audio ads to enhance multimedia campaigns at no additional cost. The audio tool is currently in beta for U.S. advertisers, with plans to fully integrate it into the AI creative studio soon.
Amazon’s commitment to enhancing the creative process with AI aims to reduce the complexity of ad creation and offer brands a way to leverage their existing assets more effectively. By using AI-driven solutions, advertisers can produce high-quality creatives faster, potentially saving on production costs while expanding their campaign reach.
DSP Overhaul: Simplified Campaign Management
The Amazon DSP received a significant upgrade, designed to simplify campaign creation and improve user experience. Early tests of the revamped DSP, which includes a consolidated display line-item feature, showed a 75% reduction in setup time for campaigns. Additionally, the platform now leverages machine learning to provide actionable insights and recommendations, allowing advertisers to adjust their campaigns based on real-time data.
New controls for frequency capping were also introduced, enabling advertisers to avoid duplicate impressions and enhance budget efficiency. According to Amazon, companies that piloted this feature saved up to 26% of their campaign budgets while achieving a 21% increase in incremental reach.
Full-Funnel Insights and Multi-Channel Measurement
Another major focus was improving the insights and measurement capabilities of Amazon Ads. The company unveiled solutions for full-funnel performance, offering advertisers a clearer view of their campaigns across the consumer journey. This includes a managed service for new product campaigns that helps brands introduce products via ads not just on Amazon but also on other publishers’ platforms. The approach allows advertisers to connect with consumers across multiple touchpoints, increasing brand visibility before a purchase decision is made.
Amazon also launched a new ads data manager, integrating first-party data from providers like Salesforce. This tool allows advertisers to deploy, measure, and optimize campaigns more effectively, using Amazon DSP and Amazon Marketing Cloud (AMC). For brands focused on measuring the success of multichannel campaigns, Amazon Ads will be rolling out multi-touch attribution later this year, with a full launch planned for 2025.
Expanding Prime Video Ads to New Markets
To further enhance its advertising ecosystem, Amazon is expanding Prime Video ads to five additional markets, including Brazil, India, and Japan, by 2025. Currently, Prime Video ads are available in 12 countries, including the U.S., U.K., and Canada. This expansion will allow advertisers to tap into new markets and reach diverse audiences, providing more opportunities to drive engagement and sales.
The latest enhancements introduced at the UnBoxed conference underscore Amazon’s efforts to stay competitive in the retail media space as its ad revenue growth begins to slow. By focusing on AI innovation, streamlined campaign management, and improved measurement, Amazon aims to attract advertisers seeking to maximize their media investments across a variety of channels.
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