Amazon now selling AI video ads: Impact on digital marketing?
Amazon is set to introduce a new artificial intelligence video ad generator tool for sellers in the United States this week. This innovative tool allows sellers to transform a still image of their product into a personalized video showcasing the item in action with just a single click. Amazon is following in the footsteps of other tech giants by expanding into the realm of ad generation rather than solely focusing on ad sales.
For the past few years, Amazon has offered an AI image generation tool for ads. Many online shoppers have likely encountered product images superimposed on various backgrounds while browsing for items like watches. The new video tool takes this concept to the next level, as explained by Kabir Bedi, the head of product for generative AI at Amazon Ads. Bedi highlights the importance of showcasing a watch being worn and demonstrating how it looks on a moving wrist to potential customers. Additionally, the videos are enhanced with music and animated text sourced from product descriptions and reviews, enhancing the overall viewing experience.
Other tech companies are also exploring similar avenues. Meta, for instance, is delving into AI-powered ad customization, and Netflix has hinted at using generative AI to personalize ads based on its show’s themes. Garrett Johnson, a marketing professor at Boston University, believes that AI has the potential to revolutionize ad targeting. By offering a range of messages to consumers and leveraging AI to match the most effective message to the right audience, advertisers can significantly enhance their campaigns’ impact.
Koen Pauwels, a professor at Northeastern University who has collaborated with Amazon Ads, raises concerns about the potential homogenization of AI-generated ads. While early AI videos sometimes featured anomalies such as melting faces or extra fingers, Pauwels is more worried about these ads becoming indistinguishable and forgettable over time. He notes that this issue is not unique to AI-generated content and can also affect human-created ads, emphasizing the need for creativity and diversity in advertising efforts.
As AI continues to play a more prominent role in digital marketing, experts like Garrett Johnson and Koen Pauwels stress the importance of maintaining uniqueness and relevance in advertising campaigns. While AI offers opportunities for improved targeting and efficiency, there is a risk of oversaturation and uniformity in ad content. Companies like Amazon are at the forefront of leveraging AI to enhance their advertising capabilities, but they must also ensure that their ads stand out and engage viewers effectively. The evolving landscape of AI-generated ads presents both opportunities and challenges for marketers as they navigate the shifting dynamics of digital advertising.