2024 will be a year of AI, streaming TV and machine learning: Amazon Ads

From the application of GenAI at scale and an evolving streaming TV landscape to the expected deprecation of third-party cookies, Amazon Ads believes that the year 2024 is going to be a ‘defining year of change for advertisers’.

As per the ad platform of the e-commerce giant, the top trends that will shape the advertising industry during the next twelve months will be that of and around Artificial Intelligence, streaming TV and machine learning.

Here is a list of top trends as predicted by Amazon Ads-

Generative AI redefining creative development

As per Amazon Ads, in 2024 Generative AI will become a creative tool that advertisers will utilise on a daily basis. Supporting its views, the ad platform quoted a recent research from Gartner which mentioned that 63% of marketing leaders plan to invest in Gen AI solutions within the next two years.

In a March 2023 survey, the ad platform of the e-commerce giant also found out that among the advertisers who were unable to build successful campaigns, nearly 75% cited building ad creatives and choosing a creative format as their biggest challenges.

That being said, the company believes that GenAI can empower advertisers to efficiently produce brand-themed imagery at scale, enhancing their creative capabilities and streamlining the process. Hence, to help advertisers capitalise on the benefits of GenAI, Amazon Ads has launched a new GenAI tool for image generation which can help advertisers in the US for sponsored brand campaigns.

Brands of all sizes will embrace Streaming TV

Streaming TV ads which have long been the domain of large brands, this year is likely to see advertisers of all sizes, including small and medium sized businesses, embracing its format as per Amazon Ads.

The company also believes that with a growing number of Streaming TV (STV) providers launching self-service advertising options and new ad tech tools helping with creative development, SMBs will start using STV advertising at scale to help drive their business objectives. 

In lieu of the same, Amazon Ads has recently announced the launch of Sponsored TV for US advertisers to enable brands 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 aware, shoppable ad formats, Sponsored TV, as per the ad platform of Amazon, allows marketers to buy streaming TV with the same flexibility of Amazon’s sponsored ads without any minimum spend requirements or upfront commitments.

On similar lines, Amazon also has introduced miniTV- an ad-supported free video streaming service in India that is watched mainly for its ‘high-quality well curated content’ that includes web series, reality shows, short films, video sketches and international shows. Integrated within the e-commerce platform’s shopping app, website, 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.

To reach these audiences, the company mentioned that it offers immersive ads experience with opportunities for various brand integrations and one-click access to the brands’ shopping pages on Amazon, without the viewer having to leave the app improving brand awareness, purchase intent and brand association.

However, for brands looking to reach and engage relevant streaming audiences at scale, starting in early 2024, Prime Video shows and movies, as per Amazon Ads will also include limited advertisements.

Advertisers turning to clean rooms for planning, optimising and measuring their campaign’s impact, increasingly

One of the other trends that Amazon Ads believes will prevail this year will be that of advertisers looking forward to safely bringing together and analysing information from disparate sources, including their own and third parties, with the flexibility to generate custom marketing insights via clean rooms.

As per IAB State of Data 2023, 64% of companies leveraging privacy preserving technology are already using clean rooms and this number will only rise with 85% already considering the use of this technology in 2024.

For this, the e-commerce giant has come up with Amazon Marketing Cloud which is a ‘secure, privacy-safe and cloud-based clean room solution that enables advertisers to aggregate signals and create the queries most relevant to their business.’

As per the ad platform of Amazon, AMC helps advertisers to better understand how customers are traversing across different channels, or how their exposure to ads across those channels is (or isn’t) driving downstream business impact whilst reporting on cross-channel media performance and complementing the reporting capabilities available in Amazon DSP.

As for publishers, the ad platform of Amazon also announced Amazon Publisher Cloud, a new collaboration service that enables publishers to ‘plan programmatic deals and activate them in Amazon DSP, informed by the ability to analyze their first-party signals together with insights from Amazon Ads’.

Advanced machine learning models giving relevance a boost

In order to overcome the challenge of the consumer base increasingly becoming cautious when it comes to spending and continuing to deliver against incremental performance goals, advertisers, as per Amazon Ads need to focus on remaining relevant, while also preserving insight integrity and continuing to prioritise customer trust.

As per the ad platform of Amazon, one of the ways to do so is through adopting model-based solutions that create an informed understanding of an audience while also delivering results and therefore Amazon Ads expects investment to accelerate in this area as advertisers work to remain relevant in a world without third-party cookies.

At Amazon Ads, advertisers using Amazon DSP have access to new, more advanced machine learning models which analyse a range of signals to help advertisers predict and reach highly relevant audiences with optimal cost-efficiency, and optimised campaign control systems to enhance bidding and pacing decisions which help advertisers reach previously unaddressable audiences. 

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