Amazon Unveils AI-Powered Video Ad Generator to Boost Ad Segment Revenue
Amazon has launched a generative AI solution that converts product pictures into video ads. The e-commerce giant made this announcement during the Accelerate event it held on September 19. Amazon ad partners can access the Amazon AI powered video ad generator without incurring additional costs.
According to Marketing Drive, Amazon’s video generator serves as an affordable top-of-funnel channel for small and medium-sized businesses.
Video Generation Process
Amazon says that marketers on the Sponsored Brands platform have to submit product pages to access the video generator. Once the page is submitted, marketers have to select the AI-generated video option on the drop-down menu.
The tool generates and displays several video options for marketers to choose and edit based on their needs. Amazon showcased the video generator at work during the Accelerate Event.
Using a pre-recorded demo, the e-commerce company displayed a lavender-scented lotion image being placed in the video generator.
The tool generated ads with sprawling flower fields and text to highlight the qualities of the product was added to the video. Amazon said that availability of video generator tools is restricted at this time. Its live image capabilities are also limited. However, the company is committed to fine-tuning the AI technology using user feedback.
Journey to Generative AI
Amazon’s journey to develop generative AI solutions for advertisers started last fall when it unveiled its AI image generator. The tool was used by Appliance manufacturer, Whirlpool in its holiday marketing campaign in 2023. The company reported significant results from the campaign, including over 2 million impressions and a 2% click-through rate.
By extending the idea to video generation, Amazon is looking to maximize advertising spend for businesses by boosting their top-of-funnel results. Big tech companies like Meta, have also entered the generative AI space in recent years. On September 23, Google Ads rolled out a video enhancement feature to boost video ad performance even as its advertising technology remains the focus of its ongoing antitrust trial.
With its new AI-powered video generator, Amazon is looking to boost revenue performance for its ad segment. In its quarter two results, the e-commerce reported a 20% revenue growth in this segment but still fell below Wall Street’s estimates.
A Tested Solution
The video generator produces fairly basic videos using available product images. However, Amazon anticipates that the single click aspect that leverages the Sponsored Brands platform and comes at no cost will attract businesses.
French skincare company, Gellé Frères has been testing the new solution as part of its Amazon AI powered holiday marketing campaign. A spokesperson from the company has termed Amazon’s AI-powered video generator as effective in reducing the time that businesses spend producing video ads.
The company also said that the new tool has paved the way for it to advertise more of its products.
