A Amazon Ads outlined the trends he believes will shape the advertising industry over the next 12 months. Since the application of large-scale generative artificial intelligence and an evolving landscape of streaminguntil the expected deactivation of cookies third party, 2024 is set to be a defining year of change for advertisers. As companies look to the future, Amazon Ads decided to share its views on how innovation will help big and even small brands deliver improved advertising experiences for their audiences, and consequently, better results for their campaigns.
Generative AI redefines creative development
Over the past 12 months, generative AI has been the word on everyone’s lips. In the advertising industry, business leaders have discussed extensively the potential of generative AI to revolutionize the way creativity is developed, helping brands achieve better results quickly. By 2024, generative AI will become a creative tool that advertisers use every day. Gartner research supports this, with 63% of marketing leaders planning to invest in generative AI solutions in the next two years.
In proprietary research conducted in March 2023, Amazon Ads found that among advertisers unable to build successful campaigns, nearly 75% cited building ad creative and choosing a creative format as their biggest challenges. In this sense, generative AI can empower advertisers to efficiently produce themed brand images at scale, enhancing their creative capabilities and simplifying the process.
To help advertisers leverage the benefits of generative AI, Amazon Ads has launched image generation for US advertisers in their Sponsored Brands campaigns. This new tool is a generative AI solution designed to remove creative barriers and enable brands to produce lifestyle images that help improve the performance of their ads.
For example, an advertiser might have isolated images of their product on a white background, such as a coffee mug. When that same coffee mug is placed in a lifestyle context, on a kitchen counter, next to a croissantin a Sponsored Brands mobile ad, we saw click-through rates are over 40% higher compared to ads with standard product images.
Brands of all sizes embrace streaming TV
TV Ads by streaming have always been the domain of big brands, but this year, we expect to see advertisers of all sizes adopting this format. In 2024, cable TV streaming become a standard tool for small and medium-sized businesses (SMEs). Amazon Ads believes that with a growing number of TV providers streaming (STV) launching self-service advertising options like NBC and Sky Media, in addition to new ad technology tools aiding creative development, SMEs will begin using TV advertising streaming at scale to drive your business goals.
The company recently announced the launch of Sponsored TV for US brands, a solution that allows businesses of any size to connect with new customers in their living rooms, even if they have never advertised on TV before. Pre-packaged with retail-conscious ad formats, Sponsored TV allows marketers to buy TV ads via streaming with the same flexibility as Amazon Sponsored Ads, with no minimum spend requirements or upfront commitments. In just a few clicks, brands can engage relevant viewers on TV services streaminglike Twitch or Freevee.
Now, any brand selling on Amazon can benefit from campaigns modeled by Amazon Ads that also optimize in real time, simplifying the complexity of programmatic TV ad buying.
Meanwhile, for brands looking to reach and engage relevant audiences at scale, starting in early 2024, Prime Video shows and movies will include limited ads. Advertising on Prime Video content will be introduced in the US, UK, Germany and Canada, followed by France, Italy, Spain, Mexico and Australia. Prime Video Ads is the latest addition to TV offerings for streaming from Amazon Ads, which covers Amazon’s Freevee, live sports including Thursday Night Football and the UEFA Champions League (in select regions), live streaming entertainment on Twitch, major TV apps and broadcast networks, and Fire channels TV.
Advertisers will increasingly turn to clean rooms to help plan, optimize and measure the impact of their campaigns
Advertisers are always looking for new and better ways to drive discovery and deliver better customer experiences. However, planning, activating and measuring which campaigns and creative are effective in reaching these customers remains a challenge.
The answer for many brands has been to use clean rooms, that is, secure collaboration environments that allow two or more participants to share data for specific, mutually agreed uses, ensuring the application of strict data access restrictions (for example, not revealing or exposing your customers’ personal data to others). other parties involved in the process). Using these clean roomsadvertisers were able to discover new audiences and insights that are helping to optimize ad spend.
In 2024, we expect adoption of this technology to increase as advertisers seek to gather and analyze information from diverse sources, including their own and third parties, with the flexibility to generate insights personalized marketing tools. According to the IAB’s State of Data 2023 study, 64% of companies that use privacy-preserving technology are already using clean rooms. By 2024, this number will increase to 85%, with many already considering using this technology.
Amazon Marketing Cloud (AMC) is a clean room secure, cloud-based platform that allows advertisers to aggregate signals and create the most relevant queries for their business. AMC can help brands grow their insights about the path to purchase, connect dots between Amazon stores and owned retail domains, or create custom reports to identify user engagement across channels, strategies, and devices.
A consumer packaged goods (CPG) brand achieved a 103% increase in new customer purchases after AMC helped it better understand whether high-repeat products were driving new customers to the brand’s Amazon store. Equipped with this insightthe brand could double down on marketing products with exceptional new customer purchase rates and repeat purchase rates.
Additionally, Amazon Marketing Cloud can report cross-channel media performance and complement the reporting capabilities available in Amazon DSP. For publishers, Amazon Ads announced Amazon Publisher Cloud, a new collaboration service that allows publishers to plan programmatic deals and activate them in Amazon DSP, informed by the ability to analyze their first-party signals alongside insights from Amazon Ads. Amazon Publisher Cloud is the first and only clean room which allows an editor to analyze their first-party signals with the insights of Amazon Ads to create reach-optimized deals.
Advanced machine learning models drive relevance
How brands will reach their audience tomorrow will be completely different than today. This, combined with a consumer base that is increasingly cautious about spending, as shown in a PWC study, understandably worries advertisers about the potential for their future campaigns to connect with relevant audiences.
To overcome these challenges, advertisers need to focus on remaining relevant, while also preserving information integrity and continuing to prioritize customer trust. One way advertisers will do this is by adopting model-based solutions that create an informed understanding of an audience while delivering results. The company expects investment to accelerate in this area as advertisers work to remain relevant in a world without cookies of third parties.
In Amazon Ads, advertisers using Amazon DSP have access to the most advanced machine learning models and optimized campaign control systems to improve bidding and pacing decisions, helping them reach previously unaddressable audiences. New machine learning models analyze a variety of signals to help them predict and reach highly relevant audiences with optimized cost efficiency.
Analyzing data from Amazon in the US, Amazon Ads observed that modeled audiences deliver higher delivery and engagement rates by up to 25%, with a 12% reduction in cost per click. And thanks to the breadth of purchase, navigation and streamingincreased the average return on ad spend for US campaigns on Amazon DSP by more than a third.
Interactive ads will help advertisers engage audiences in new ways
Advertising on linear TV and radio has looked and sounded the same for a long time. However, with cable TV streaming and smart speakers in the home, the creative opportunity brands have to engage audiences has evolved.
In 2024, interactive advertising represents an opportunity for brands to stand out and drive consumer engagement. Available in TV ads for streaming and audio, interactive ads allow consumers to add items to a shopping cart or receive more information about a product simply by using the remote control, scanning an on-screen QR Code, or speaking to the connected device that displayed the advertisement.
For advertisers who take the step toward interactive advertising, the results are clear. Amazon Ads results show that interactive video ads are 1.4x more likely to deliver positive brand lift, while shoppable calls to action (CTAs) drive 4.3x stronger consideration, as evidenced by rate performance view detailed pages.
Advertisers can leverage our range of interactive Amazon Ads across video, audio, and devices to create unique shopping experiences that make it easy for customers to move from video to podcast or album for the checkout. Simple commands such as “Add to cart”, “Add list” or “Buy now”, a click or scanning a QR Code transform traditional ad consumption into seamless shopping experiences.
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