Amazon's New AI-Powered Ad Imagery Boosts Click-Through Rates By 40%

Amazon.Com, Inc AMZN launched an artificial intelligence-powered image generation to help advertisers deliver a better customer ad experience.

Amazon Ads rolled out an image generation in beta, a generative AI solution to remove creative barriers and enable brands to produce lifestyle imagery that helps improve their ads' performance. 

Also Read: Meta's AI Innovations Promise Efficiency and Growth In Ads

"Producing engaging and differentiated creatives can increase cost and often requires introducing additional expertise into the advertising process," said Colleen Aubrey, senior vice president of Amazon Ads Products and Technology.

The solution caters to advertisers of all sizes, enabling those lacking in-house capabilities or agency support to create brand-themed imagery more easily while supporting more prominent brands. 

In the Amazon Ad Console, advertisers simply select their product and click Generate, with the tool leveraging generative AI to deliver a set of lifestyle and brand-themed images. They can refine the image by entering short text prompts, creating multiple versions, and testing to optimize performance.

The initiative can generate 40% higher click-through rates than ads with standard product images.

The company is designing custom microchips, Inferentia and Trainium, for AWS' generative AI training and acceleration to bypass Nvidia Corp NVDA GPUs for large language model training.

Price Action: AMZN shares traded lower by 1.38% at $119.72 on the last check Thursday.