Amazon Ads has developed a special solution for advertisers after identifying several major trends that will influence digital advertising in 2024. The broader usage of generative AI, the growing uptake of streaming TV commercials by companies of all sizes, the use of clean rooms for campaign optimization, and the accelerating pace of investments in cutting-edge machine learning models are some of these trends.
Amazon Ads’ Solution Suite for Advertisers
Image generation tool
For the past year, the advertising business has been using generative AI as a semantic, with leaders praising its potential to completely transform creative development. Generative AI is expected to become a crucial tool for advertisers in 2024, enabling the effective creation of visuals for a brand at scale, according to Amazon Ads. Based on a poll done by Amazon Ads in March 2023, about 75% of advertisers said that developing ad creative and selecting creative formats were the biggest obstacles to creating effective campaigns.
Amazon Ads has introduced an image-generating tool for US advertisers taking part in Sponsored Brands campaigns to tackle this. With the help of this generative AI technology, brands will be able to develop lifestyle content. It can greatly enhance ad performance by removing creative limitations.
Sponsored TV for US advertisers
Large brands have always dominated the streaming TV ad market. But according to Amazon Ads, businesses of all kinds will start using the technology in the masses by 2024. Amazon Ads hopes to democratize access to streaming TV advertising with the introduction of Sponsored TV for US advertisers. With no upfront costs or minimum expenditure restrictions, the solution gives the same flexibility as Amazon’s sponsored ads and includes retail-aware, shoppable ad layouts.
miniTV in India
Additionally, miniTV, an ad-supported free video streaming service, has been launched by Amazon in India. It offers advertisers the chance to engage in brand integrations. The Amazon.in, shopping app, site, Fire TV, and standalone miniTV app are all integrated with miniTV. Young adults, and health- and fashion-conscious consumers who enjoy traveling and trying out new things are among miniTV’s target demographics. Through miniTV advertisements, brands may offer viewers one-click access to their Amazon buying pages, enhancing brand recognition, purchase intent, and brand association without requiring them to exit the app.
Prime Video Ads
Amazon revealed that there will be limited advertisements for Prime Video movies and series worldwide beginning in early 2024. The goal of the move is to maintain and improve the platform’s content offerings while enabling the corporation to make long-term investments in more interesting films and TV series. Channels from Fire TV will be included as well. Fire TV has won over fans in India, where it is now their go-to source of entertainment.
In addition, the company emphasizes that there will be fewer adverts on Prime Video than on linear TV and other streaming platforms. With more than 150 million Fire TV devices sold worldwide, it provides a chance for advertisers to connect with viewers. They can also search and find new content. For an extra $2.99 (about INR 250) each month, users can enjoy Prime Video without any ads. On laptops, tablets, smartphones, and smart TVs, Prime Video provides movies and TV series in up to 4K quality.
Amazon Marketing Cloud (AMC)
Clean rooms are becoming a more popular tool among advertisers for campaign design, optimization, and impact measurement. Clean rooms allow marketers to analyze data from various sources and produce personalized marketing insights. The Amazon Marketing Cloud (AMC), a secure and encrypted clean room solution provided by Amazon Ads, enables advertisers to compile signals and obtain a thorough grasp of consumer behavior across several channels. In addition to reporting on cross-channel media performance, it can be used to supplement Amazon DSP’s reporting features.
Amazon Publisher Cloud
Furthermore, Amazon Ads unveiled Amazon Publisher Cloud, the first and only clean room solution. It lets publishers use Amazon Ads insights to examine their first-party signals and optimize programmatic agreements for maximum reach.
Advanced Machine Learning Models
Advertisers need to emphasize relevance, protect the integrity of their insights, and uphold customer trust to reach incremental performance targets. Key tactics will include implementing model-based solutions, developing an engaged audience awareness, and generating outcomes. To remain relevant, advertisers are adjusting to a world without cookies, anticipating further investment in this area.
Amazon Ads expects a spike in investment in advanced machine-learning models. This is due to the constantly shifting consumer landscape and growing concerns around ad relevancy. Amazon DSP advertisers now have access to improved campaign control systems and new, more advanced machine learning models. To assist advertisers in forecasting and reaching highly relevant audiences at the lowest possible cost, these models analyze a variety of signals.
Based on an internal review conducted across US campaigns, Amazon Ads found that modeled audiences offer improved delivery and engagement rates, with a 25% increase and a 12% decrease in cost per click per impression. The average return on ad spend for US Amazon DSP ads has increased by more than one-third. It was largely due to the variety of buy, browse, and streaming signals.