However, the adoption of AI in advertising could pose a threat to smaller advertising firms and freelancers who focus on graphic design. It could also lead to the production of similar images for different products, making it harder for brands to differentiate themselves. Despite these potential downsides, Amazon's advertising business is expected to earn $14.2 billion during the holiday quarter, up from $11.56 billion a year earlier.
Key takeaways:
- Amazon is leveraging generative AI to improve ad targeting and create better product images for advertisers, aiming to attract more shoppers and advertisers during the holiday season.
- Amazon's AI tools are expected to save money for advertisers by creating personalized ads for various audiences, and could encourage hesitant shoppers to make purchases if targeted products are more relevant.
- Amazon's Prime membership, which has over 160 million subscribers, provides a significant advantage in advertising and better targeting shoppers, leading to more frequent purchases.
- While Amazon's AI-imaging could pose a threat to smaller advertising firms and freelancers, it could also lead to ads with similar images for different products, making it harder for sellers to differentiate themselves.