At unBoxed 2024, Amazon Ads unveiled a wide range of new advertising tools and enhancements that promise to reshape the future of advertising on Amazon platforms. These innovations reflect Amazon's commitment to making advertising more accessible, scalable, and effective for businesses of all sizes, from small sellers to large global brands.
Key Announcements from unBoxed 2024
AI-Powered Creative Tools One of the most exciting announcements was the introduction of AI-powered creative tools, particularly the AI Creative Studio and Audio Generator. The AI Creative Studio allows advertisers to create dynamic ad content across different media formats—such as video, images, and audio—by simply using existing assets like product images. This tool reduces the complexity and cost traditionally associated with multi-format campaigns, giving brands a creative edge without needing a huge budget. The Audio Generator complements this by enabling advertisers to create 30-second interactive audio ads with just a few inputs, helping brands extend their reach on Alexa-enabled devices.
Expanded Performance+ Ads Another key update was the expansion of Performance+ Ads, which now supports additional campaign types like prospecting, remarketing, and retention. With integrated AI and first-party data, this tool automates campaign optimisation, leading to significant improvements in performance. In a case study shared at the event, early users of Performance+ reported a 51% reduction in customer acquisition costs.
Amazon Demand-Side Platform (DSP) Revamp The Amazon DSP underwent a major overhaul, aimed at streamlining the ad creation process and enhancing campaign management. Advertisers now have access to improved creative formats, faster workflows, and new insights such as frequency cap controls. These updates are designed to maximise campaign reach while minimising costs, with initial tests showing a 21% increase in shopper reach and up to 26% budget reinvestment.
Audience Bid Boosting and Multi-Touch Attribution Amazon also introduced Audience Bid Boosting, allowing advertisers to dynamically adjust their bids for Sponsored Products and Sponsored Brands based on specific audience signals. Combined with the newly launched Multi-Touch Attribution (MTA) model, brands can now gain deeper insights into the entire customer journey, from first impression to final conversion. This not only enhances targeting but also enables better measurement of upper- and mid-funnel ad performance.
The Impact on Future Advertising
These new tools and capabilities will have a profound impact on the future of advertising on Amazon:
Lower Creative Barriers: With the AI Creative Studio and other generative AI tools, businesses no longer need significant technical expertise or large budgets to create high-quality, multi-format ads. This democratises access to sophisticated advertising options, allowing smaller brands to compete with larger ones on a more level playing field.
Full-Funnel Advertising Optimisation: The updated DSP and the integration of tools like Performance+ and MTA provide brands with full-funnel advertising solutions, from awareness campaigns to conversion-driven strategies. This holistic approach ensures that advertisers can engage customers at every stage of the purchase journey and optimise media investments across channels.
Better Audience Targeting and Measurement: By leveraging first-party data through AMC and using audience bid boosting, advertisers can refine their targeting to reach the most relevant customers, improving campaign efficiency. Additionally, tools like MTA give advertisers a clearer understanding of how different ads contribute to conversions, making it easier to allocate resources effectively.
Overall, Amazon's 2024 updates are geared toward enhancing advertisers' creative and analytical capabilities, helping brands of all sizes maximise their reach, engage customers more effectively, and drive better business outcomes. As these tools roll out, they are expected to elevate Amazon’s role as a leading player in the digital advertising space.