It lists Generative AI, Streaming TV, Clean Rooms, and Advanced Machine Learning as trends in digital advertising in 2024.
Identifying some key trends that will shape digital advertising in 2024, Amazon Ads has created unique solutions for advertisers. These trends include the widespread application of generative AI, the increasing adoption of streaming TV ads by businesses of all sizes, the use of clean rooms for campaign optimisation, and the acceleration of investment in advanced machine learning models. Based on these, here are the solutions it offers:
Image Generation Tool
Generative AI has been a buzzword in the advertising industry for the past year, with business leaders extolling its potential to revolutionise creative development. In 2024, Amazon Ads predicts that generative AI will become an integral tool for advertisers, facilitating the efficient production of brand-themed imagery at scale. According to a March 2023 survey conducted by Amazon Ads, nearly 75% of advertisers faced challenges in building successful campaigns, citing ad creative development and choosing creative formats as major hurdles.
To address this, Amazon Ads has launched an image generation tool for US advertisers participating in Sponsored Brands campaigns. This generative AI solution aims to remove creative barriers, allowing brands to produce lifestyle imagery that significantly improves ad performance. For instance, integrating a product into a lifestyle context has shown to increase click-through rates by over 40% compared to standard product images.
Sponsored TV for US Advertisers
While streaming TV ads have traditionally been the domain of large brands, Amazon Ads predicts that 2024 will witness a surge in adoption by businesses of all sizes. With the launch of Sponsored TV for US advertisers, Amazon Ads aims to democratise access to streaming TV advertising. The solution comes with retail-aware, shoppable ad formats and offers the same flexibility as Amazon's sponsored ads, with no minimum spend requirements or upfront commitments.
miniTV in India
Amazon has also introduced miniTV in India, an ad-supported free video streaming service, providing advertisers with opportunities for immersive brand integrations. miniTV is integrated within the Amazon.in shopping app, shopping site, Fire TV and the standalone miniTV app. miniTV’s audiences include young adults and health and fashion-conscious shoppers with an affinity towards travelling and adopting new products. Brands can provide one-click access to their shopping pages on Amazon through ads on miniTV, without the viewer having to leave the app improving brand awareness, purchase intent and brand association.
Prime Video Ads
Starting early 2024, Prime Video shows and movies will include limited advertisements globally, expanding Amazon Ads' streaming TV offering to reach customers across various channels, including Fire TV channels. In India, Fire TV has delighted customers and become their entertainment destination. With over 150 million Fire TV devices sold globally, it offers advertisers an opportunity to reach customers as they browse and discover new entertainment.
Amazon Marketing Cloud (AMC)
Advertisers are increasingly turning to clean rooms as a solution for planning, optimising, and measuring the impact of their campaigns. Clean rooms enable advertisers to analyse information from disparate sources, ensuring privacy while generating custom marketing insights. Amazon Ads offers the Amazon Marketing Cloud (AMC), a secure and privacy-safe clean room solution that allows advertisers to aggregate signals and gain a comprehensive understanding of customer behavior across different channels.
It can report on cross-channel media performance and complement the reporting capabilities available in Amazon DSP.
Amazon Publisher Cloud
Additionally, Amazon Ads introduced Amazon Publisher Cloud, the first and only clean room solution enabling publishers to analyse their first-party signals with Amazon Ads insights, optimising programmatic deals for reach.
Advanced Machine Learning Models
To meet incremental performance goals, advertisers must prioritise relevance, safeguard insight integrity, and maintain customer trust. Adopting model-based solutions, creating an informed audience understanding, and delivering results will be key strategies. Anticipating an accelerated investment in this realm, advertisers are adapting to a cookie-free world to stay relevant.
With an ever-changing consumer landscape and increased concerns about ad relevance, Amazon Ads anticipates a surge in investment in advanced machine learning models. Advertisers using Amazon DSP now have access to new, more sophisticated machine learning models and optimised campaign control systems. These models analyse a range of signals to help advertisers predict and reach highly relevant audiences with optimal cost-efficiency.
Amazon Ads has observed that modeled audiences provide higher delivery and engagement rates, with a 25% increase and a 12% decrease in cost per click per impression, according to an internal analysis across US campaigns. The breadth of buy, browse, and streaming signals has contributed to over a third increase in the average return on ad spend across US Amazon DSP campaigns.