Amazon Leverages Generative AI for Holiday Ad Boost, Targeting 160M Prime Subscribers

Amazon.Com Inc AMZN looks to utilize generative AI as a strategic tool this festive season aiming to enhance ad targeting and expedite promotional content creation for merchants. 

This approach will likely attract a larger audience of shoppers and advertisers to the platform, utilizing the extensive data from over 160 million Prime subscribers.

Also Read: Amazon's Big Deal Days Boosts Sales Despite Consumer Spending Challenges, Analyst Says

Amazon is placing its bets on AI-powered targeted ads to stand out this Black Friday and Cyber Monday beyond its signature fast shipping and attractive discounts, Reuters reports. 

CEO Andy Jassy highlighted the pivotal role of machine learning in curating more pertinent ads for shoppers, emphasizing its potential to attract advertisers seeking high-performance and high-volume ad spaces. 

The company has introduced generative AI to refine product images for advertisers, aiming to garner more attention for third-party sellers' products. 

This tool is adept at generating background images for products based on their specific details, enhancing the overall visual appeal of the advertisements.

Andy Friedland, Chief Revenue Officer at Swiftly and a former Amazon ad executive, highlighted the cost-effectiveness of Amazon's AI tools, which can generate numerous ad variations personalized to the user, potentially saving advertisers significant money. 

Companies like Ascendly Marketing are also exploring generative AI imaging tools, blending images of public figures with products to create engaging advertisements. 

This approach has proven to boost social sharing and sales, trends that Amazon aims to replicate with its AI ad tools during the holiday season. 

Analysts are optimistic about Amazon's advertising business, projecting earnings of $14.2 billion in the holiday quarter, up from $11.56 billion the previous year. 

The company's Prime membership, priced at $14.99 per month or $139 annually, is seen as a substantial advantage in advertising, driving more frequent customer purchases. 

Amazon anticipates holiday-quarter revenue to fall between $160 billion - $167 billion, with last year's fourth-quarter revenue reported at $149.2 billion.

Price Action: AMZN shares traded higher by 1.11% at $129.16 premarket on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.