At its annual UnBoxed conference, Amazon Ads unveiled a range of new capabilities designed to empower advertisers, leveraging artificial intelligence (AI) and an upgraded demand-side platform (DSP). The enhancements aim to simplify campaign creation, improve ad efficiency, and provide deeper insights, reaffirming Amazon’s commitment to supporting advertisers in a competitive retail media landscape.
AI-Powered Tools and DSP Enhancements
Among the key announcements was the introduction of a self-service generative AI creative studio. This new tool allows advertisers to create versatile ad content from a single product image, page, or asset, which can then be used across Amazon’s expansive ecosystem, including amazon.com, Prime Video, and Twitch. An AI-powered audio generator was also introduced, offering the ability to create 30-second audio ads that can complement existing campaigns at no extra cost. The audio feature, currently in beta, will eventually become part of Amazon’s AI creative studio, integrating image, video, and audio ad production into a single platform.
Additionally, Amazon’s DSP received a user experience overhaul, which simplifies campaign setup. A consolidated display line-item feature has been shown to reduce setup time by 75%, allowing advertisers to launch campaigns more efficiently. To further optimize advertising efforts, the DSP now includes frequency cap controls, which help reduce budget waste on duplicate impressions. According to Amazon, advertisers who tested this feature saved up to 26% on their campaigns while achieving up to 21% incremental reach.
New Data Management and Campaign Performance Tools
To enhance data-driven advertising, Amazon Ads also introduced an ads data manager. This tool integrates first-party data from partners like Salesforce, enabling advertisers to optimize campaigns across both Amazon DSP and Amazon Marketing Cloud (AMC). Advertisers can use this to improve audience targeting and measure campaign effectiveness across various channels. Performance+ has been updated as well, bringing AI-powered automation to help advertisers get the best results from their campaigns.
As part of a broader move to enhance campaign management, Amazon announced a fully-managed service for new product campaigns. This service aims to streamline the introduction of new products, helping brands run ads across Amazon properties and other platforms to reach consumers multiple times, driving awareness and sales.
Expansion and Future Plans
Amazon Ads’ advancements reflect its growing role in the retail media sector. The company also plans to roll out ads on Prime Video to additional markets, including Brazil, India, Japan, the Netherlands, and New Zealand by 2025. Currently, Prime Video ads are available in several regions, such as the U.S., U.K., Canada, and Spain. This expansion underscores Amazon’s intent to create a more integrated advertising environment across its global platforms.
As Amazon continues to evolve its advertising services, it is also testing multi-touch attribution to address the complexities of multichannel marketing. This new feature, set to fully launch in 2025, will help advertisers better understand the customer journey, providing insights into how ads across various touchpoints contribute to a sale.
Insights and Market Impact
Amazon’s moves come as the company seeks to attract more advertisers amid a slight slowdown in ad revenue growth. By enhancing tools that simplify ad creation and campaign management, Amazon is positioning itself as a leader in the evolving retail media landscape. The new tools were positively received, with Omnicom Media Group’s Chief Activation Officer Megan Pagliuca noting that Amazon’s capabilities “exceed those of other DSPs.”
With these enhancements, Amazon Ads is looking to cement its place as an essential platform for brands seeking to connect with consumers across the entire purchase journey, offering a robust set of tools to create, manage, and optimize advertising campaigns effectively.