Amazon is reportedly developing a team dedicated to creating AI-powered tools for generating images and videos, allowing merchants to use them in advertising campaigns on its platform. This move is in line with the company’s ongoing efforts to diversify its advertising business, following in the footsteps of major players like Google and Microsoft.
Both Google and Microsoft have been leading the charge in incorporating generative artificial intelligence into their products. These companies have plans to integrate AI in advertising, and now Amazon is joining the race, according to recent reports. Amazon’s intention is to create a team that will focus on developing AI tools capable of generating visuals for merchants to use in their advertising campaigns on the e-commerce giant’s platform.
A company spokesperson has indicated that these AI initiatives could potentially help diversify Amazon’s advertising business, which has experienced double-digit percentage growth every quarter since the company started reporting its revenue in 2021. Last year alone, Amazon’s advertising business generated $38 billion.
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Amazon has built a comprehensive ad system aimed at boosting the visibility of merchants on their platform. This strategy puts a strong emphasis on increasing search results exposure for merchants. In a move to extend its advertising business, the company is exploring the idea of selling ad spaces on Freevee, their free video streaming service, as well as Thursday Night Football broadcasts on Prime Video. This could give advertisers more exposure while also providing an additional source of revenue for the company. In addition to that, Amazon offers audio ads on its Amazon Music platform and digital ads on the screens of its Amazon Fresh grocery stores.
In recent months, Google and Microsoft have already presented their AI-generated advertising plans to marketers. Advertisers can provide creative content, such as images, videos, and text related to specific ad campaigns, and the AI tools from these companies will generate ads tailored to the target audience.
Microsoft, for instance, is said to be testing ads in an early version of its Bing chatbot, which is similar to Google’s ads on Search. An advertising executive has stated that Microsoft is taking traditional search ads, where brands pay for their websites or products to appear in search results for relevant keywords, and incorporating them into responses generated by the Bing chatbot.
In conclusion, Amazon is taking steps to compete with Google and Microsoft in the AI-generated advertising space by forming a dedicated team to create AI tools for generating images and videos. This move reflects the company’s ongoing efforts to diversify and expand its advertising business, which has seen significant growth in recent years.
