Amazon Boosts Advertising Solutions with Enhanced Data Infrastructure and AI-powered Image Generation
Amazon unveils advanced ad suite, including a cutting-edge data clean room and AI-powered image generator, at their annual UnBoxed conference Enhanced cross-channel planner and updates to Amazon Marketing Cloud were also announced
Article Brief:
During its annual UnBoxed conference, Amazon introduced several advertising products, including a customized data clean room for publishers and an innovative artificial intelligence (AI) solution designed to enhance campaign assets.
Amazon DSP, Amazon Marketing Cloud (AMC), and the Amazon Ads API will soon be equipped with new campaign management features. Marketers will have access to a cross-channel media planner that allows them to assess audience reach and relevance on different channels, enabling them to adjust budgets effectively. Additionally, a beta version of an image generator powered by generative AI will be introduced, allowing brands to swiftly generate background images that can showcase products in a lifestyle context. These exciting additions aim to sustain the growth of Amazon's successful ads business, which has emerged as a dominant force in the retail media category.
Article Insight:
As usual, UnBoxed is buzzing with updates on Amazon Ads, and the situation is no different this year. The latest news from the 2023 event reveals that the e-commerce powerhouse is embracing generative AI and data clean rooms trends. Moreover, Amazon aims to enhance its current ad-tech solutions, such as its DSP and marketing cloud, to unlock new possibilities.
One of the most significant advancements is the introduction of Amazon Publisher Cloud, a service that allows publishers to plan programmatic campaigns using their own data sources combined with Amazon's through the Amazon DSP. This product was developed using the infrastructure of Amazon's existing AWS Clean Rooms, which were introduced in the past year.
By utilizing the new clean room tool under Amazon Publisher Services, publishers can compare contextual ad signals from their own platform with Amazon Ads audience data to identify consumers who have an interest in products like pet food or cookware. This valuable information can then be used to create programmatic campaigns for brands looking to target these specific in-market customers on a larger scale, as demonstrated by Amazon.
Beta launch partners for Amazon Publisher Cloud include DirecTV, Dotdash Meredith, Fandom, NBCUniversal, and TelevisaUnivision. Internal Amazon data shows that an earlier test of the service by NBCUniversal on Amazon Prime reached more than three times the desired audience compared to an unoptimized campaign.
"In a press statement, Ryan McConville, executive vice president of advertising platforms and operations at NBCUniversal, said, 'Our collaboration enabled us to deliver significantly more effective advertising, specifically by reaching in-market viewers at scale, all in a privacy-minded way. The performance of this initial work shows what's possible when we have rich insights into our viewers and package our media accordingly.'"
Amazon is utilizing generative AI, like other digital ad platforms, to enhance the marketing efforts of brands. The company's image generator feature, which is accessible to a limited number of advertisers and requires no technical expertise, can be particularly helpful for small- and medium-sized brands who lack the time or resources to create extensive creative content internally or through external agencies.
Advertisers can use the Amazon Ad Console to quickly generate potential image options and improve their campaigns. By inputting their product pages and clicking a Generate button, advertisers can instantly see different image choices and refine the results by adding text prompts. This solution is designed to address the common issue of using repetitive white background images. According to Amazon, using more lifestyle-oriented backdrops, such as a toaster on a kitchen counter with seasonal decorations, can increase click-through rates on mobile sponsored ads by up to 40%.
Amazon's increased focus on its advertising suite comes as the company's ad sales segment becomes one of its fastest-growing areas of business. These enhancements for marketers also align with the upcoming deprecation of third-party cookies next year. This change has motivated more brands to invest in the retail media category and explore data clean rooms, which offer a higher level of privacy while maintaining precision. Amazon will announce its third-quarter earnings later today (Oct. 26).
