Cutting Setup Times and Costs: Amazon’s New Ad Tech Suite Brings Efficiency to the Fore

October 21, 2024

Amazon Ads has rolled out a comprehensive suite of new tools and capabilities aimed at helping advertisers maximize their campaigns on the e-commerce giant’s platforms. These updates, revealed during the annual UnBoxed conference, underscore Amazon’s continued push to refine its advertising technology, even as its ad services revenue growth rate shows signs of deceleration. Key highlights include enhancements to the Amazon Demand-side Platform (DSP), new AI-driven creative tools, and expanded data management solutions.

Revamped Amazon DSP and AI-Powered Ad Creation

Amazon’s DSP has undergone a significant overhaul to simplify the user experience. The new design streamlines campaign creation by consolidating features into a unified display line-item, reducing setup time by up to 75% during early tests. Enhanced machine learning algorithms provide real-time insights and recommendations, enabling advertisers to adjust their strategies with greater precision. In addition, a campaign management hub is scheduled for launch in 2025, which aims to further simplify multi-channel campaign management.

The platform’s AI creative studio was also a major highlight. This tool, currently in beta for select U.S. advertisers, allows brands to generate ad content from a single product photo, page, or asset. It integrates image, video, and newly introduced audio ad creation capabilities, offering brands a seamless way to craft engaging ads for Amazon.com, Prime Video, Twitch, and more. The audio generator feature, for instance, can create 30-second ads to complement other campaign elements, further boosting reach without additional costs.

Bridging the Gap Between First-Party Data and Campaign Insights

Amazon is stepping up its data game with an ads data manager that allows advertisers to integrate first-party data from external providers like Salesforce directly into the Amazon DSP and Amazon Marketing Cloud (AMC). This feature aims to provide a cohesive view of campaign performance, enabling advertisers to deploy, measure, and optimize their strategies more effectively.

To help advertisers address redundancy and improve efficiency, Amazon introduced new frequency cap controls Brands that piloted this tool managed to save up to 26% of their budgets by minimizing spending on duplicate impressions, while also achieving up to 21% incremental reach.

Expanding Full-Funnel Campaign Capabilities and Global Reach

Amazon’s advertising capabilities now include new features to support full-funnel campaign performance. The company has launched a managed service that aids brands in introducing new products via ads across Amazon’s network and other publishing platforms. These ads help brands connect with consumers repeatedly, which Amazon claims is essential before a purchase is made.

Additionally, Amazon Ads is enhancing its multi-channel measurement solutions with plans to test multi-touch attribution later this year and fully roll out the feature in 2025. This move is aimed at providing advertisers with a clearer understanding of how their campaigns are performing across various channels.

Prime Video, a key part of Amazon’s advertising ecosystem, is also set to expand its ad-supported content to new international markets, including Brazil, India, Japan, and New Zealand by 2025. This expansion builds on the service’s existing presence in major markets such as the U.S., U.K., and Germany.

Paving the Way for the Future of Advertising

The UnBoxed conference showcased Amazon’s strategic focus on enhancing its advertising technology through AI and better data management. The introduction of innovative tools like the AI creative studio and expanded global reach demonstrates Amazon’s commitment to maintaining its leadership position in the competitive retail media space. As these tools roll out, they could be key to attracting advertisers looking for more streamlined, data-driven, and multi-channel advertising solutions.

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